Millions of Universal Credit claimants to obtain first pay rise since advantages increase beginning this week

Universal Credit payments increased by 1.7% from April 7 but the first payments which will include the higher rates will be paid from this week as it is paid monthly in arrears

Millions of Universal Credit recipients are set to see a boost in their benefit payments starting this week. As of April 7, Universal Credit payments have seen a 1.7% increase.

However, due to the monthly arrears payment system of Universal Credit, the first batch of payments reflecting the increased rates will only start rolling out this week. This is because the new enhanced payment rates are applicable to Universal Credit assessment periods that commenced on or after April 7.

The assessment period is utilised to determine the amount of Universal Credit you’re entitled to, based on any income you may have earned through employment, or deductions during this period.

Universal Credit payments are disbursed a week following the end date of each assessment period. Therefore, if your last Universal Credit assessment period began on April 7, you’ll start receiving the higher payments from this week.

However, some individuals may not see the increased payments reflected in their Universal Credit until June. Universal Credit comprises a standard allowance which is determined by your age and whether you’re claiming as an individual or as part of a couple.

The standard allowance is the fundamental amount you receive before any additional elements – such as having children or being unable to work due to illness – or any deductions are considered. Here’s a breakdown of how much the Universal Credit standard allowance has increased:.

For singles under 25: from £311.68 a month to £316.98 a month.

For singles aged 25 or over: from £393.45 a month to £400.14 a month.

Couples under 25 on joint claims are set to see their monthly Universal Credit bump up from £489.23 to £497.55, while those with one or both partners aged 25 or over will get a rise from £617.60 to £628.10.

Universal Credit is on a mission to streamline welfare by absorbing six of the older legacy benefits: Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Housing Benefit.

The switch-off for existing claims for Tax Credits, Income Support, income-based Jobseeker’s Allowance, and Housing Benefit has already been flicked, but there’s still a batch of households receiving income-related Employment and Support Allowance (ESA) that need to hop onto the Universal Credit bandwagon.

The Department for Work and Pensions (DWP) is busy dishing out “migration notices” to these holdouts. These letters come with a three-month ultimatum to make the switch to Universal Credit.

The DWP have got their sights set on getting all remaining ESA claimants in the loop by September 2025, with the grand plan of having everyone transferred to Universal Credit by March 2026.