Thousands of people relying on Universal Credit will see a significant boost to their payments from today, Friday 24 May. With this increase, new rates are being introduced for the 2024/2025 financial year, which will be applied for the first time to claimants receiving early benefit payments due to the May Bank Holiday.
Universal Credit Payouts to Rise Significantly from Today
The first claimants to benefit from the higher payment levels were those who received their payments on 14 May. Since then, the 6.7% increase in benefits has gradually spread to other benefit accounts.
In addition, people who are due to receive their Universal Credit payments on 24, 25, 26 or 27 May will all see the increase. This adjustment applies to people whose assessment period runs from 18 April to 20 May.
The increase in payment amounts is mainly attributed to the bank holiday weekend, which led to several due dates being brought forward to Friday.
Thereafter, throughout the following week, the increased amounts will continue to be reflected in beneficiaries' Universal Credit payments.
However, beneficiaries whose contribution period began before 8 April or after 25 April will have to wait until June to see the updated rates.
Although the 2024/2025 rates came into effect on 8 April, the late visibility for Universal Credit beneficiaries is due to payments being processed late and based on the previous assessment period.
A petition has been launched to argue for a change to this system, proposing that any Universal Credit assessment period falling partly after 8 April should include a pro-rata increase corresponding to the number of days beyond that starting point.
List of New Rates
Standard Allowance (Single)
- Under 25: £311.68
- 25 or over: £393.45
Standard Allowance (Couple)
- Both under 25: £489.23
- Joint claimants, 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
Disabled Child Payments
- Lower rate addition: £156.11
- Higher rate addition: £487.58
Work Capability Payments for being unfit for work through sickness/disability
- 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
- £198.31 (not the same as separate benefit Carer's Allowance)
Childcare Costs (the amount you 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) - amount you can keep in wages before deductions applied to benefits
- Higher work allowance (no housing amount): £673
- Lower work allowance: £404
Transitional Payments
- Transitional 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 EDP - single: £89.63
- Transitional SDP element additional amount for EDP - couple: £128.04
- Transitional SDP element additional amount for DP - single: £183.52
- Transitional SDP element additional amount for DP - couple: £262.48
- Transitional SDP element additional amount for disabled children: £188.86
