Adjustments Explained: Universal Credit Payment

The Department for Work and Pensions (DWP) has officially announced that millions of individuals receiving Universal Credit will witness the yearly adjustment reflected in their monthly payments starting Tuesday, May 14. Nonetheless, for some, the wait for the increased amount to reach their bank accounts will extend nearly another month.

This revelation was made during a recent segment of Money Box on BBC Radio 4 by program researcher Sandra Hardial, who discussed delays in the enhancement of State Pension and benefit payments, despite the DWP implementing the increase on April 8. Due to the payment structure of Universal Credit, many recipients won’t receive the augmented payment on May 14.

Sandra clarified that while Universal Credit payments surged by 6.7% on the specified date, recipients won’t immediately receive the funds due to the system’s arrears payment method. She stated, “The six million people on Universal Credit face the longest wait. The DWP has informed Money Box that none of them will receive the increased rate before May 14, with some having to wait until June 13.”

Additionally, alongside the 6.7% increase in the base Universal Credit rate, other benefits have also seen a rise in value. Notably, one of the most significant boosts announced this year is the extension of paid-for childcare to 15 hours for eligible working parents of children aged 9 months to 3 years.

New Universal Credit payment rates for 2024/25:
The listed rates are monthly unless stated otherwise. For a comprehensive list of all updated DWP benefit payment rates, including Housing Benefit and deductions, refer to GOV.UK.

For Single claimants:
Under 25: £311.68 (previously £292.11)
25 or over: £393.45 (previously £368.74)

For Joint claimants:
Both under 25: £489.23 (previously £458.51)
One or both 25 or over: £617.60 (previously £578.82)

Child Amounts:
First child (born before April 6, 2017): £333.33 (previously £315.00)
First child (born on or after April 6, 2017) / Second child and subsequent child (where an exception or transitional provision applies): £287.92 (previously £269.58)

Disabled Child Additions:
Lower rate addition: £156.11 (previously £146.31)
Higher rate addition: £487.58 (previously £456.89)

Limited Capability for Work:
Monthly amount: £156.11 (previously £146.31)

Limited Capability for Work and Work-Related Activity:

Monthly amount: £416.19 (previously £390.06)

Carer amount:
Monthly amount: £198.31 (previously £185.86)

Childcare costs amount:
Maximum for one child: £1014.63 (previously £950.92)
Maximum for two or more children: £1,739.37 (previously £1630.15)
Non-dependants’ housing cost contributions: £91.47 (previously £85.73)

Below are the updated payment rates for Universal Credit: