Universal Credit payments increased by 1.7% as of April 2025 with some universal credit claimants not seeing their initial higher amount until this month (June 2025).
Benefit rates are adjusted annually in April. This year, the official increase occurs on 6 April, marking the start of the 2025/26 tax year. For most benefits, the updated rates will commence from 7th April.
However, for certain universal credit recipients, the higher rates will begin around June 2025. This delay is due to the new rate being implemented only from the first assessment period starting on or after 7th April.
The government uses an assessment period to determine the amount of universal credit you receive, taking into account your earnings or deductions during that time.
Benefits other than Universal Credit are also seeing a 1.7% increase including the Personal Independence Payment, Carer’s Allowance, Income Support, Housing Benefit, and Jobseeker’s Allowance.
There is no action required on your part, with the 1.7% increase automatically given with the increased rates only applicable to universal credit assessment periods commencing on or after April 7th, 2025.
Now is also a good time for universal claimaints to consider if you are entitled to a tax refund from the 24/25 tax year which you should be able to check online via your personal tax account.
What are the universal credit rates from April 2025?
Universal credit consists of a standard allowance that is determined by your age and whether you are applying as a single individual or as part of a couple.
The standard allowance represents the fundamental sum you receive prior to considering any extra components – such as having children or being unable to work due to health issues – or any deductions.
Below is the increase in the universal credit standard allowance from April 2025:
- Individual under 25: ranging from £311.68 per month to £316.98 per month.
- Individual aged 25 or older: varying from £393.45 per month to £400.14 per month.
- Joint claimants both under 25: fluctuating from £489.23 per month to £497.55 per month.
- Joint claimants, one or both aged 25 or above: changing from £617.60 per month to £628.10 per month.
Parents are you entitled to an extra £495 universal credit?
Individuals receiving universal credit may be overlooking extra benefit entitlements if they fail to utilise their online UC account to notify a change.
Parents receiving universal credit who have been granted disability living allowance (DLA) should inform the DWP to receive additional funds in their payments.
DLA is available until the age of 16 and consists of both care and mobility elements. The weekly rates are £29.20 for low-rate care and lower mobility, £73.90 for middle-rate care, £77.05 for higher mobility, and £110.40 for high-rate care. Payments are made every four weeks.
It also grants universal credit recipients access to a child disability component in addition to their regular UC payments.
These supplementary amounts can either be a reduced rate of £158.76 per month or a higher rate of £495.87 per month depending on the type of DLA received.
Advisors on benefits recommend that individuals should inform their universal credit account about any newly approved DLA claim, enabling the addition of the UC child disability component.
Amount of unclaimed UC hits £980 million
In a recent government report the universal credit unfulfilled eligibility rate was quoted at 1.5% or £980m for the year ending 2025, compared to 1.4% or £730m in the previous 2024 year.
This unfilled eligibility rate figures represent the total funds that claimants are missing out on due to their failure to notify the DWP about their complete circumstances.
The primary reason was that individuals were not informing universal credit about the rises in their rent, which would have resulted in receiving a higher housing element within their universal credit to help pay for part or all of this expense.
Tell universal credit if your rent goes up
In recent updates from the DWP, the benefits department has begun encouraging universal credit claimants to verify whether there has been any change in their circumstances.
The governments report on unfulfilled eligibility confirmed that the main reason for universal credit going unclaimed was unreported rent increases.
It is important to promptly inform UC when your rent goes up or of any other relevant changes in your situation (like change of address or job) to ensure you continue receiving the correct monthly amount.
Failing to inform universal credit about a change could result in receiving either an excess or insufficient amount of money, which you might have to repay.
You can update your universal credit account through your UC account online: https://www.gov.uk/universal-credit/changes-of-circumstances
