Universal Credit Claimants Get First Pay Rise This Week: Millions of people across the UK who receive Universal Credit are about to see an improvement in their monthly income. Starting this week, the Department for Work and Pensions (DWP) has introduced a 1.7% increase to Universal Credit payments. This rise is part of the government’s response to the ongoing cost-of-living crisis and aims to provide additional financial support to low-income households, job seekers, and carers.
If you’re already on Universal Credit or are considering making a claim, it’s important to know exactly what these changes involve, how they affect your payments, and what steps you should take to ensure you’re getting the correct amount. In this guide, we’ll explore everything from updated payment figures to eligibility criteria, assessment periods, and even what’s expected in the future.
Whether you’re a working parent balancing childcare and part-time employment, someone recently made redundant, or a full-time carer, understanding these changes can help you plan your finances more effectively and access the support you’re entitled to.
Universal Credit Claimants Get First Pay Rise This Week
| Feature | Details |
|---|---|
| Effective Date | May 13, 2025 |
| Rate Increase | 1.7% across most Universal Credit elements |
| Standard Allowance (25+ Single) | From £393.45 to £400.14/month |
| Couple (25+) Allowance | From £617.60 to £628.10/month |
| Carer’s Element | From £198.31 to £201.68/month |
| Childcare Support | Up to £1,031.88 for 1 child, £1,768.94 for 2+ |
| Eligibility Criteria | Low income, UK residency, savings under £16,000 |
| Official Source | gov.uk/universal-credit |
While the 1.7% increase in Universal Credit might not be a game-changer, it’s a welcome improvement for millions navigating tight household budgets. Small amounts, when managed wisely, can build greater financial resilience over time. Now is the time to review your Universal Credit account, understand your assessment period, and look into additional forms of support. Whether it’s free school meals, utility rebates, or childcare help, there are many options available for those who qualify.
If you’re feeling overwhelmed or uncertain, don’t hesitate to seek support from a Citizens Advice Bureau, local council, or a qualified benefits advisor. These resources can help you navigate the system more confidently.
Understanding the Universal Credit Pay Rise
Universal Credit is a monthly payment from the government that helps with your living costs. It combines six older benefits into one, including income support, housing benefit, and jobseeker’s allowance. It’s designed for people who are on a low income, unemployed, or unable to work.
Every year, the government reviews benefit rates to keep up with inflation. The latest 1.7% increase reflects the rise in the Consumer Price Index (CPI) and aims to ensure that support keeps pace with the rising cost of essential items like groceries, gas, electricity, and rent.
Even though 1.7% might not seem like a huge increase, it adds up over the months and can make a tangible difference, especially for larger families or households with dependents.
Real-World Examples
- A single adult over 25 will now receive £400.14 per month, up from £393.45.
- A couple with one partner over 25 will see their monthly payment rise to £628.10, from £617.60.
- A full-time carer eligible for the carer’s element will now receive £201.68, compared to the previous £198.31.
These changes officially came into effect in April 2025, but due to the structure of Universal Credit’s monthly assessment periods, the higher amounts will appear in May or June payments, depending on your payment schedule.
Who Qualifies for the Pay Rise?
To benefit from this increase, you must either already be claiming Universal Credit or meet the eligibility criteria to make a new claim. This includes:
- Being 18 years or older (some exceptions for 16-17 year-olds apply)
- Residing in the UK on a permanent basis
- Having savings and capital of less than £16,000
- Being unemployed, on a low income, or unable to work due to illness or disability
If you’re unsure about your eligibility or the exact amount you might receive, you can use free benefit calculators provided by:
- Turn2Us
- Entitledto
- Policy in Practice
These tools provide tailored estimates based on your personal and financial circumstances.
When Will You See the Increase?
Payments under Universal Credit are calculated based on assessment periods, which are monthly cycles that begin on the date of your first claim.
Timing Breakdown:
- If your assessment period began before April 7, 2025, the increased rate will be reflected in your May 2025 payment.
- If your assessment period began on or after April 7, the increase will show in your June 2025 payment.
Example: Let’s say your monthly assessment runs from March 24 to April 23. The next cycle begins April 24, which includes the new rates. Your higher payment will arrive around May 30.
Detailed Breakdown: Updated Universal Credit Rates
Let’s examine which Universal Credit components are increasing:
Standard Allowance
This is the basic amount awarded to every claimant, varying by age and whether you’re single or part of a couple.
- Single under 25: £316.98/month (was £311.68)
- Single 25 and over: £400.14/month (was £393.45)
- Couple under 25: £497.55/month (was £489.23)
- Couple with at least one 25+: £628.10/month (was £617.60)
Additional Support Elements
These components apply based on your specific circumstances, such as caregiving responsibilities or disability.
- Carer’s Element: £201.68/month (was £198.31)
- Limited Capability for Work: £158.76/month (was £156.11)
- Childcare Support:
- 1 child: Up to £1,031.88/month
- 2+ children: Up to £1,768.94/month
These increases provide greater support to working families, single parents, and those with health challenges.
Why Is This Important Now?
The economic landscape in the UK remains uncertain. Inflation, while lower than in 2022, still hovers at 3.2% according to the Office for National Statistics (ONS). At the same time, many households face rising costs for food, utilities, and transportation.
This pay rise, though modest, acts as a financial cushion. For many families, an extra £6 or £7 a month can mean buying additional groceries, covering rising energy bills, or simply having a bit more breathing room.
Additionally, these changes indicate the government’s commitment to making benefits more reflective of real-life living costs, albeit incrementally.
Looking Ahead: More Universal Credit Changes Coming
There are more updates on the horizon for Universal Credit recipients:
- In April 2026, the standard allowance will receive a one-time above-inflation boost of £7 per week, bringing it from around £91 to £98 weekly.
- However, the health element of Universal Credit will remain frozen at £97 per week until 2029/30.
- Those applying after April 2026 will receive a reduced health element of £50 per week, potentially affecting thousands of new claimants.
It’s wise to stay informed about future policy shifts, especially if you’re planning long-term around these benefits. Reliable updates can be found on the official Universal Credit website or through non-profits like Citizens Advice.
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FAQs About Universal Credit Claimants Get First Pay Rise This Week
How do I apply for Universal Credit?
Visit the official government website at gov.uk/universal-credit to begin your application online. You’ll need your National Insurance number and financial details.
Will I automatically get the pay rise?
Yes, existing claimants will see the increase automatically reflected in their next eligible monthly payment.
Does this impact other benefits like Housing Benefit?
Universal Credit typically replaces Housing Benefit. If you’re receiving separate housing support, consult your local authority or Jobcentre.
Can I still work and claim Universal Credit?
Absolutely. Universal Credit is designed to adjust based on earnings, making it accessible to part-time and full-time workers with low income.
Are there any other forms of support I can get with Universal Credit?
Depending on your circumstances, you might also be eligible for:
- Council Tax Reduction
- Free School Meals
- Healthy Start Vouchers
- Budgeting Advances for emergency expenses
