The Department for Work and Pensions (DWP) has confirmed a scheduled increase in Universal Credit payments, set to take effect from 13 May 2025. While the adjustment was announced earlier this year, its impact will now be visible in payments following April’s assessment periods.
According to DWP figures, the 1.7% rise affects several categories of recipients, including those claiming standard allowances, child elements, and carer support. The uplift forms part of the broader indexation of benefits in response to inflation and cost-of-living pressures.
New Universal Credit Rates Reflect Indexation Policy
The uplift follows the Labour government’s ongoing policy to match benefits to living costs through annual adjustments. While most of the new rates officially came into force in early April, due to Universal Credit’s monthly assessment cycle, many claimants will not receive their adjusted payments until mid-May.
According to the DWP, the standard monthly allowance for a single person under 25 has increased to £316.98, up from £311.68.
For single claimants aged 25 or over, the amount now stands at £400.14, up from £393.45. Couples under 25 will receive £497.55 (up from £489.23), and those where at least one partner is 25 or older will receive £628.10, up from £617.60.
Additional elements have also been revised. The child element now provides £339 for a first child born before April 6, 2017 (up from £333.33), and £292.81 for children born after that date or subsequent children (up from £287.92).
The disabled child element has risen to £158.76 (lower rate) and £495.87 (higher rate), representing an increase of approximately £2–£8 per month depending on the category.
Work allowances, which apply to claimants in employment, have also seen modest increases. The higher work allowance has moved to £684, while the lower allowance (with housing support) now stands at £411.
Wider Benefit System Also Adjusted Amid Living Cost Concerns
The Universal Credit uplift forms part of a broader recalibration across the welfare system. In tandem with the changes to Universal Credit, Child Benefit, Personal Independence Payment (PIP), Carer’s Allowance, and Employment and Support Allowance (ESA) have all been adjusted.
The decision to increase most benefits by 1.7% aligns with inflation figures recorded in late 2024. While this is not intended to serve as a real-terms increase, it is designed to maintain the relative value of benefits in an economic context marked by persistent cost-of-living pressures.
The timing of these changes has particular significance for recipients whose assessment periods began before 7 April, as they will only experience the adjusted payments in their May disbursement.
For millions of households, this marks the first tangible impact of the new rates, providing a degree of financial relief amid continuing economic volatility.
is this a serious article? how on earth is an increase of around £7 per month supposed to be any kind of financial relief? it would barely make up for the increase of a few items in the supermarket for gods sake and this is written as though everyone getting these adjusted payments are going to have an easier time and will be financialy secure!