Universal Credit: pay rise for millions who claim UC with rates increase of up to £10.50 coming in April 2025

• Universal Credit payments will increase by 1.7% starting in April 2025
• The rise will benefit millions of people in the UK
• Increases will range from a few pounds to up to £10.50 per month for joint claimants aged 25 and over
• Payments for childcare, disability, and other allowances will also see rises
• While welcomed, some experts argue that the increase may fall short of addressing the challenges of low-income households

Millions of people receiving Universal Credit and other social security benefits in the UK will soon see an increase in their payments.

The annual adjustment coming in April 2025 coincides with the start of the new financial year, a time when many government policies and budgets take effect.

Most social security benefits - which encompass a range of payments provided by the Government to support individuals and families in financial need - will increase by 1.7% from the previous year’s rates.

That’s because each year, benefits are adjusted based on the Consumer Price Index (CPI) inflation rate recorded in the previous September.

While this year’s increases will provide some much-needed financial relief to households across the country as they navigate rising costs, September 2024's inflation rate of 1.7% was the lowest seen in three and a half years.

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Some experts have argued that the increase may fall short of addressing the challenges faced by low-income households.

The Joseph Rowntree Foundation, an organisation dedicated to tackling poverty, criticised the 1.7% rise last year, saying "April’s uprating will be worth just a few pounds to most people.”

But what does the rate rise mean if you are receiving Universal Credit payments, and how much more money can you expect to see paid into your bank account come April? Here is everything you need to know.

How much will Universal Credit go up by?

Universal Credit is one of the most significant social security benefits in the UK, designed to replace several older benefits with a single monthly payment.

The standard allowance - the baseline amount provided to claimants - will see the following increases:

• Single claimants under 25 will receive an increase from £311.68 to £316.98 per month.
• Single claimants aged 25 and over will see their allowance rise from £393.45 to £400.14 per month.
• Joint claimants both under 25 will experience an increase from £489.23 to £497.55 per month.
• Joint claimants both aged 25 and over will have their standard allowance raised from £617.60 to £628.10 per month.

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For individuals and families relying on Universal Credit and other benefits, the 1.7% increase will provide a modest but welcome boost.

Single claimants aged 25 and over will receive an extra £6.69 per month, which can contribute to covering rising utility bills, food costs, or other daily expenses. Similarly, joint claimants aged 25 and over will benefit from an additional £10.50 per month.

In addition to the standard allowance, several other Universal Credit elements will also see increases:

Child amounts:

• First child (born prior to April 6, 2017): Increase from £333.33 to £339.00.
• First child (born on or after April 6, 2017)/second child and subsequent child (where an exception or transitional provision applies): Increase from £287.92 to £292.81.

Disabled child additions:

• Lower rate addition: Increase from £156.11 to £158.76.
• Higher rate addition: Increase from £487.58 to £495.87.
• Limited Capability for Work amount: Increase from £156.11 to £158.76.
• Limited Capability for Work and Work-Related Activity amount: Increase from £416.19 to £423.27.
• Carer amount: Increase from £198.31 to £201.68.

Childcare costs amount:

• Maximum for one child: Increase from £1014.63 to £1031.88.
• Maximum for two or more children: Increase from £1739.37 to £1768.94.
• Non-dependants’ housing cost contributions: Increase from £91.47 to £93.02.

For more information on adjustments to Universal Credit elements - as well as other forms of support - head to the Government’s website.

Is Universal Credit the same across the UK?

Universal Credit across the UK, including in Scotland, Northern Ireland and Wales, but there are some differences in how it is administered, particularly in Scotland, where certain devolved powers allow for changes in how UC is managed.

But while the administration and some aspects of the delivery might differ, the rates and percentage increases are set by the UK Government, and so will be the same across the UK.

Got thoughts on the upcoming Universal Credit increase? Will it make a difference for you or someone you know? Share your experiences and opinions in the comments section.