DWP Reveals New Payment Boosts for Universal Credit and Jobseeker’s Allowance

Millions of individuals receiving Universal Credit and Jobseeker's Allowance are set to benefit from an increase in their payments, as the Department for Work and Pensions (DWP) adjusts rates in line with September's Consumer Price Index.

However, this adjustment, which will take effect from the first working week of April 2025, will see a 1.7% rise in benefit amounts. Critics, however, argue that the recent inflation figure of 2.2% should have been utilized instead.

Understanding Universal Credit and Jobseeker's Allowance

Universal Credit is designed for those who are unemployed and seeking work, as well as individuals on low wages or unable to work due to health issues. Jobseeker's Allowance (JSA), on the other hand, is strictly for those actively looking for employment. Currently, over seven million people rely on Universal Credit, while approximately 96,000 claim Jobseeker's Allowance.

It is important to note that the income-based version of JSA, which is means-tested, is being phased out. All 20,000 recipients of this benefit have been notified to transition to Universal Credit, with Migration Notice letters distributed in September. Contribution-based JSA, now referred to as New Style JSA, remains unaffected as it relies on an individual's National Insurance contributions.

Upcoming Payment Rates

Below are the new payment rates for Universal Credit and Jobseeker's Allowance, effective from April 7, 2025. Universal Credit is disbursed monthly, while JSA is typically paid every two weeks.

Universal Credit Payment Rates 2025/2026

Standard Allowance

• Single under 25: £316.98 (up from £311.68).
• Single 25 or over: £400.14 (up from £393.45).
• Couple, both under 25: £497.55 (up from £489.23).
• Couple, one or both 25 or over: £628.10 (up from £617.60).

Child Amounts

• First child (born before April 6, 2017): £339.00 (up from £333.33).
• First child (born on or after April 6, 2017) / second and subsequent children (where applicable): £292.81 (up from £287.92).

Disabled Child Additions

• Lower rate addition: £158.76 (up from £156.11).
• Higher rate addition: £495.87 (up from £487.58).

Incapacity Payments

• Limited Capability for Work (LCW): £158.76 (up from £156.11).
• Limited Capability for Work and Work-Related Activity (LCWRA): £423.27 (up from £416.19).
• Carer Element: £201.68 (up from £198.31)

Childcare Costs

• Maximum for one child: £1,031.88 (up from £1,014.63).
• Maximum for two or more children: £1,768.94 (up from £1,739.37)

Jobseeker's Allowance Payment Rates 2025/2026

Jobseeker's Allowance rates are presented weekly, though payments are typically issued biweekly.

Contribution-Based JSA - Personal Rates

• Under 25: £72.90 (up from £71.70).
• 25 or over: £92.05 (up from £90.50)

Income-Based JSA - Personal Allowances

• Under 25: £72.90 (up from £71.70).
• 25 or over: £92.05 (up from £90.50).

Lone Parent and Couple Allowances

• Both under 18: £72.90 (up from £71.70).
• Both 18 or over: £144.65 (up from £142.25).
• Dependent children: £84.66 (up from £83.24).

Premiums

• Family or lone parent: £19.48 (up from £19.15).
• Pensioner (single): £135.05 (up from £127.65).
• Disability (single): £43.20 (up from £42.50).

Future Employment Initiatives

The DWP's new "Get Britain Working" plan aims to enhance employment opportunities and reduce economic inactivity. This initiative includes transforming jobcentres into a national careers service and offering comprehensive education, training, or employment access to all individuals aged 18 to 21 through a new Youth Guarantee.

As these changes unfold, it is crucial for beneficiaries to stay informed about their entitlements and the support available to them. For the latest updates on pensions, benefits, and financial assistance, consider subscribing to BirminghamLive's Money Saving Newsletter.