Four DWP Universal Credit changes coming in May 2024 including a rise in benefit payments

If you receive Universal Credit, it will be worth looking down this list to note some big changes coming in May 2024.

The Department for Work and Pensions (DWP) is implementing a number of changes that will affect payment dates, amounts and earnings requirements. Among the adjustments people will need to take into account in May is a new rise in the Administrative Earnings Threshold.

This increase was indicated in Prime Minister Rishi Sunak's recent speech on welfare reforms aimed at cutting economic inactivity and getting more people back into employment to boost Britain's economy, reports BirminghamLive. All the upcoming changes are explained below.

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May 4 to 6 - Bank holiday payment changes

May has two bank holidays to take into account when budgeting. The first is the Early May Bank Holiday on Monday, May 6, which will affect when you receive your payment.

Universal Credit recipients should note that payment dates are shifting in May due to the early May bank holiday. If you usually receive your Universal Credit on the 4th, 5th or 6th of the month, expect to see your payment arrive earlier, on Friday, May 3.

It's important to check the money has gone in before the close of business on Friday as DWP offices, jobcentres and helplines won't be open again until Tuesday, May 7. Any payments due on that Tuesday should go in as normal.

May 13 - Earnings threshold goes up

The Administrative Earnings Threshold (AET) went up on April 1 and is set to climb further on May 13. From April 1, the AET had gone up to £743 a month for individuals and £1,189 a month for couples, and from May 13 it will go up to £892 for individuals and £1,437 for couples. This is equivalent to an individual working 18 hours per week at the National Living Wage or couples working a total of 29 hours per week at the National Living Wage.

The AET determines the minimum wage claimants must earn if they have work-related requirements. Chancellor Rishi Sunak emphasised the Government's stance, saying: "If you can work more, you should. So we're changing the rules. Anyone working less than half a full-time week will now have to try and find extra work in return for claiming benefits."

The imminent change will impact 180,000 Universal Credit recipients. Those earning below the AET are placed in an Intensive Work Search Group, requiring regular meetings with their work coach to explore ways to increase their wages and meet the new criteria.

May 14 - New payment rates first applied

From May 14, Universal Credit claimants will start to see the new benefit rates fully reflected in their payments. A 6.7% increase was implemented from April 8, the beginning of the first working week of the new financial year. However, due to Universal Credit being paid monthly in arrears, the new amounts aren't immediately visible.

Recipients need a full one-month assessment period on or after April 8 for the new rates to be applied to their payments. The first claimants to see the rise will be those whose assessment period runs from April 8 to May 7, which will mean they are paid on May 14. The new increases will see the standard allowance of Universal Credit go up from £292.11 to £311.68 a month for a single person under 25, and from £368.74 to £393.45 for single people aged 25 and above.

Couples will see their standard allowance increase from £458.51 to £489.23 a month if they are both under 25 and from £578.82 to £617.60 if one or both are aged 25 or above. Additional amounts are paid for having children, caring responsibilities, and being unfit for work.

May 25 to 27 - Bank holiday payment changes

The second bank holiday in May will also affect Universal Credit payments. It is on Monday, May 27.

Anyone whose Universal Credit is normally due on the 25th, 26th or 27th of the month should see it credited to their account earlier as the bank holiday will interrupt the regular schedule of payments. Payments due on any of those dates should go in on Friday, May 24, instead.

Although payments will appear up to three days sooner than usual, the cash will have to last longer until your next due date, including through the bank holiday weekend which can be an expensive time for families. Be sure to check the money has gone in before the close of business on Friday as DWP offices, jobcentres and helplines won't be open again until Tuesday, May 28, when payments return to normal.