New Universal Credit 2024 payment rates as thousands start claims in DWP shake-up

Hundreds of thousands more people are starting claims for Universal Credit as the Department for Work and Pensions steps up its 'managed migration'. Six legacy benefits are being phased out as the rollout progresses, with many recipients trying to work out what they'll receive in their new Universal Credit payments - so we've included all the new amounts below.

More than 500,000 households who claim either Working Tax Credit and/or Child Tax Credit with no other benefits were notified that they needed to claim Universal Credit by the end of March. In April, 120,000 households on tax credits with Housing Benefit, plus 110,000 claiming Income Support, received letters telling them to make the switch, and in June another 100,000 households who only get Housing Benefit were invited to transfer.

In April 2022, when the expansion of Universal Credit resumed after the pandemic, there were 2.6 million people still to be moved and the DWP estimated that 55 per cent (1.4 million) would get a higher amount in their new benefit payments, 35 per cent (900,000) would be entitled to less but would receive transitional protection to top their Universal Credit up to what they were on before, and the rest would be entitled to the same amount.

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New rates for Universal Credit and other benefits came into effect on April 8. The first claimants to see the higher amounts were those paid on May 14 because their one-month assessment period started as the uprating was first introduced. Those whose assessment period started before April 8 or after April 25 didn't see the rise applied until June, with everyone now on the new rates of payment. Below we have listed all the amounts of Universal Credit and the circumstances in which they are payable.

On average, couples with children receive £1,140 in Universal Credit, with a similar amount going to single parents. Childless couples typically receive £820, and single people without children get £650.

Overall, the average amount of Universal Credit paid out per claim is £900, the DWP said. However, these figures were calculated in February 2024, before the annual rise in benefit payments this April so people will now get about £40-£70 a month more than the above averages.

Universal Credit payment rates 2024-2025 (monthly rates)

Standard Allowance (minimum amount before top-ups are added)

• Single and under 25: £311.68

• Single and aged 25 or over: £393.45

• Couple both under 25: £489.23

• Couple with one or both 25 or over: £617.60

Child Payments

• For a first child (born before April 6, 2017): £333.33

• For a first child (born on or after April 6, 2017): £287.92

• For a second child: £287.92

• For a subsequent child if an exception or transitional provision applies: £287.92

You can receive the child element for a third or subsequent child if they were born before April 6, 2017, or in exceptions such as multiple births, adoption, formal or informal care arrangements, or when conception was non-consensual or at a time when the claimant was subject to ongoing control or coercion by the other biological parent.

Disabled Child Payments

• Lower rate addition: £156.11 (if the child receives DLA at middle or lower rate care, DLA mobility at any rate, PIP daily living at standard rate or PIP mobility at any rate)

• Higher rate addition: £487.58 (if the child receives the higher rate care component of DLA, enhanced daily living PIP, or is blind and has a valid Certificate of Visual Impairment - regardless of receiving DLA)

The Universal Credit disabled child addition is included in your claim for every child or qualifying young person on your claim who is in receipt of Disability Living Allowance or Personal Independence Payment or is registered blind. It is included even for children who don't receive a child element due to the two-child cap. This element does not replace any other source of help, if they receive DLA or PIP then this will continue to be paid as normal.

Limited Work Capability Payments (for being unfit for work through sickness/disability - these are awarded after a work capability assessment)

• Limited Capability for Work: £156.11 - only payable for claims before April 2017

• Limited Capability for Work and Work-Related Activity: £416.19

Carer's Element - separate from Carer's Allowance, find out more here

• £198.31

Childcare Costs (maximum amount working parents can claim back)

• Maximum for one child: £1014.63

• Maximum for two or more children: £1739.37

Work Allowances (for one or more dependent children or limited capability for work) - this is the amount you can earn before a 55 per cent deduction called the Universal Credit taper rate is applied. It means that for every £1 you or your partner earn in wages over your work allowance, your Universal Credit entitlement will be reduced by 55p.

• Higher work allowance (no housing amount): £673

• Lower work allowance: £404

Transitional Payments (top-ups when making a managed migration from legacy benefits where you received a higher amount)

• transitional Severe Disability Premium (SDP) element (if LCWRA element included): £140.97

• transitional SDP element (if LCWRA element not included): £334.81

• transitional SDP element (joint claimants & higher SDP rate payable): £475.79

• transitional SDP element additional amount for Enhanced Disability Premium (EDP) - single: £89.63

• transitional SDP element additional amount for EDP - couple: £128.04

• transitional SDP element additional amount for Disability Premium (DP) - single: £183.52

• transitional SDP element additional amount for DP - couple: £262.48

• transitional SDP element additional amount for disabled children: £188.86

Housing Costs

Universal Credit includes a built-in housing element to replace Housing Benefit. The amount paid towards your rent is based on the Local Housing Allowance for your area and these LHA amounts can be found here.

The DWP will pay the full rent if it is up to the value of the LHA entitlement. The maximum you can get is the LHA so if your rent is higher, you will need to make up the difference - a Discretionary Housing Payment from the council may be available to do that. You can choose to have your Universal Credit housing element paid directly to the landlord or you can pay it yourself.

You can apply for Universal Credit to help with housing costs if you live in supported or sheltered housing and are not being provided with care, support or supervision. You cannot get Universal Credit to help with housing costs if you're living in supported or sheltered housing (such as a hostel) which provides you with care, support or supervision; in temporary accommodation arranged by your council because you are homeless; or in a refuge for survivors of domestic abuse. In these cases, you have to apply for Housing Benefit from the council instead.

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