The Department for Work and Pensions (DWP) has announced a 6.7% increase in Universal Credit payments starting in April 2025. This update, based on the Consumer Prices Index (CPI) inflation rate from September 2023, is part of the UK government’s annual adjustment to help households manage rising living costs.
More than 6.2 million people currently rely on Universal Credit, making this increase a vital development for millions of households across the country. Whether you’re single, part of a couple, a parent, or have additional needs, your monthly payment will reflect this 6.7% rise starting this month.
Why the 6.7% Increase Matters
The 6.7% increase comes at a time when inflation continues to put pressure on essential costs such as food, utilities, and rent. The government’s decision to raise Universal Credit in line with inflation ensures that the value of support payments doesn’t diminish over time. The increase is tied to the CPI from September 2023, which represents the inflationary pressure from that period. Although some hoped for a more recent CPI figure, this method guarantees that the changes are locked in before the April rollout.
Who Will Be Affected?
The 6.7% increase applies to all Universal Credit recipients, no matter their situation. This includes:
- Single adults, both under and over 25
- Couples (both under or over 25)
- Individuals and families with children
- Those with additional needs, including disabilities, caring responsibilities, and housing support
Everyone who receives Universal Credit will see their payments go up. However, the exact amount varies based on individual circumstances, including additional support for children, disabilities, and housing.
Breakdown of Universal Credit Increase Amounts in April 2025
Here’s a breakdown of the new monthly rates after the 6.7% increase, showing how much the payment will rise depending on the claimant’s category:
| Claimant Type | Current Monthly Rate | New Monthly Rate (April 2025) | Increase (£) |
|---|---|---|---|
| Single, under 25 | £292.11 | £311.68 | +£19.57 |
| Single, 25 or over | £368.74 | £393.45 | +£24.71 |
| Couple, both under 25 | £458.51 | £489.23 | +£30.72 |
| Couple, both 25 or over | £578.82 | £617.60 | +£38.78 |
These figures reflect the standard allowance for Universal Credit. It’s important to note that additional support for children, disabilities, and housing costs will also increase, though the amounts will vary depending on the claimant’s specific circumstances.
UK Youth Mobility Scheme 2025, Important Dates & How to Apply
UK Cost of Living Support 2025 – Who Will Get the Extra Payment
UK High-Demand Work Visa Jobs 2025, Full List of Sponsored Roles & How to Apply
£1,768 Monthly DWP Childcare Benefit in April 2025, 19.7 Million Households to Benefit
Are Families Better Off?
According to the Treasury, approximately 5.5 million households receiving Universal Credit will benefit from an average increase of £470 per year due to the 6.7% uplift. While this increase offers some financial relief, it’s worth noting that inflation has eroded the value of benefits in previous years.
Some studies, such as those by the New Economics Foundation, suggest that even with the 6.7% increase, certain households may still be up to £670 worse off compared to where they would be had benefits kept pace with the rising cost of living more consistently. This underscores ongoing concerns about the adequacy of financial support for low-income families, which has yet to fully recover from years of below-inflation increases.
Additional Universal Credit Support Elements Also Increasing
The rise in Universal Credit isn’t limited to the standard allowance. Several other elements of the benefit will also be uplifted by 6.7%, providing crucial support to different claimant groups. These include:
- Child Element: Payments for families with children, including support for the first and second child.
- Work Capability Elements: For individuals unable to work due to health conditions or disabilities.
- Carer Element: Additional help for those who care for a disabled person.
- Housing Support: For renters, particularly in areas with high housing costs.
These changes mean that claimants who are eligible for multiple elements of support may see a significant rise in their total monthly payment, above and beyond the base allowance.
Final Thoughts
The 6.7% increase in Universal Credit starting in April 2025 is a positive step toward easing the financial pressures facing many UK households. However, critics point out that this increase may not fully make up for years of inflation that has outpaced benefit rises. As essential costs continue to rise, it’s essential for Universal Credit claimants to stay informed about the details of their payments, particularly in terms of how different support elements are updated.
Be sure to check your Universal Credit journal or keep an eye out for updates from the DWP to understand exactly how your payments will change based on your individual circumstances.