The Universal Credit Increase for 2024 has been officially confirmed by the Department for Work and Pensions (DWP). Starting in April 2024, UK households receiving Universal Credit will see a boost in their payments. This increase is designed to help cover rising living costs and inflation. In this article, we’ll break down the expected changes, how they impact you, and what you can expect from your benefits in the coming year.
Understanding Universal Credit Increase Significance
As of October 2023, there are over 6.2 million Universal Credit claimants in the UK, including 172,000 in Birmingham. Depending on your situation—whether you claim as a single person or as a couple, and whether you have children—the amount you receive can vary. On average, monthly Universal Credit payments range from £630 to £1,140.
Universal Credit Increase Overview 2024
| Country | United Kingdom |
|---|---|
| Provided By | Department for Work and Pensions (DWP) |
| Increase Rate 2024 | 6.7% |
| Adjusted According to | Inflation and Cost of Living |
What is the Expected Increase in 2024?
The 6.7% increase in Universal Credit payments was announced by the Chancellor in the Autumn Statement. This adjustment follows the September Consumer Price Index (CPI) rate of inflation. For 2024-2025, it’s estimated that 5.5 million Universal Credit households will see an average gain of £470. However, research from the New Economics Foundation suggests that despite this increase, many claimants may be up to £670 worse off due to the continued high cost of living.
Universal Credit Increase Amount 2024
Here’s a breakdown of the expected increase for different claimant types:
| Claimant Type | Current Monthly Allowance | New Monthly Allowance (6.7% Increase) | Monthly Increase |
|---|---|---|---|
| Unmarried Claimants Under 25 | £292.11 | £311.68 | £19.57 |
| Single Claimants Over 25 | £368.74 | £393.45 | £24.71 |
| Couples Under 25 (Both Partners) | £458.51 | £489.23 | £30.72 |
| Couples Over 25 (Both Partners) | £578.82 | £617.60 | £38.78 |
Concluding Words
Universal Credit payments consist of a standard allowance and additional amounts based on individual circumstances. The projected 6.7% increase is expected to benefit around 5.5 million families in 2024-2025, providing an average annual boost of £470. However, some experts believe that this increase might not fully cover the rising cost of living, leaving many recipients in a worse financial position despite the nominal increase.
FAQ’s
When will the Universal Credit increase take effect?
The Universal Credit increase will take effect in April 2024. This adjustment follows the September 2023 Consumer Prices Index (CPI) rate of inflation.
How much will my Universal Credit payments increase by?
The increase will be 6.7%. For example, unmarried claimants under 25 will see their monthly allowance rise from £292.11 to £311.68, while couples over 25 will see an increase from £578.82 to £617.60.
How many people will benefit from the Universal Credit increase?
Approximately 5.5 million households receiving Universal Credit are expected to benefit from the increase in 2024, with an average annual gain of £470.