DWP warns millions of people they won't get extra payment for months

Universal Credit claimants have been warned they could face waiting up to two months to see an increase in their payments despite the rate of benefits going up at the start of April.

The Department for Work and Pensions (DWP) announced that benefits including Universal Credit will rise by 6.7% from April 8. But the way Universal Credit is calculated is based on your "assessment period" which takes into account your circumstances each month, such as earnings and savings, reports The Mirror.

The increased rate will not be paid until a new Universal Credit assessment period begins on or after April 8. You usually get your Universal Credit payment seven days after each monthly assessment period. This means most people on Universal Credit won't see any increase in their payment until May or June.

Money Box on BBC Radio 4 heard from programme researcher Sandra Hardial, who warned people won’t actually get the money straight away. She said: “The six million people on Universal Credit face the longest wait. The DWP has told Money Box that none of them will get the higher rate before the 14th of May and some will have to wait until the 13th of June.”

Universal Credit is made up of a "standard allowance" which is based on your age and if you’re claiming as a single person, or in a couple. You may also then get additional payments on top of this - for example, if you look after a child, or you're unable to work due to health issues.

Any additional amounts you may be entitled to are then applied to give your total figure before any deductions are then made. You may be subject to deductions if you're in work, if you have savings, or if you owe the DWP money. Here is how much the Universal Credit “standard allowance” is now worth:

• Single under 25: £311.68 a month

• Single 25 or over: £393.45 a month

• Joint claimants both under 25: £489.23 a month

• Joint claimants, one or both 25 or over: £617.60 a month