Delay to Universal Credit rise for millions of DWP benefit claimants

Millions of Universal Credit claimants have yet to see their payments increase - despite the payment rates going up this month. payments went up by 1.7% from April 7.

But because of the way Universal Credit is paid, most people will not see the higher payment rates reflected in their payments until up to two months later. Universal Credit is calculated based on your "assessment period" for the previous calendar month. Your "assessment period" is used to calculate how much Universal Credit you get, based on any earnings or deductions in this period.

The new increased payment rates will only be applied to Universal Credit assessment periods that have started on or after April 7. Universal Credit is normally paid seven days after each monthly assessment period, so most people won't see the increased rates reflected in their payment until May or June.

Universal Credit is made up of a standard allowance which is based on your age and if you’re claiming as a single person, or in a couple. The standard allowance is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account. Here is how much the Universal Credit standard allowance has risen by:

• Single under 25: £311.68 a month to £316.98 a month

• Single 25 or over: £393.45 a month to £400.14 a month

• Joint claimants both under 25: £489.23 a month to £497.55 a month

• Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month

Universal Credit is replacing six older legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit, unless you’re in supported or temporary housing. The Department for Work and () plans to contact all the remaining legacy benefit claimants by December 2025.

It comes as the DWP has started prompting Universal Credit claimants to confirm if they've had a change in circumstances. If you claim Universal Credit, then it is your responsibility to report any change in circumstances to the . This can include changes at work, if you’ve moved address, or your living arrangements have changed.

If you don't report a change to Universal Credit, you could receive too much or too little money, which you may need to pay back. Sir Stephen Timms said in a statement on the UK Parliament website: “As announced at Autumn 2024, the department will prompt Universal Credit claimants to confirm whether they have had a change in circumstances that might affect their claim.

“Any changes in circumstances declared will be processed and verified in the usual way. A roll out of this initiative will commence in April and testing will help determine frequency.”

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