The declaration of an upsurge in Universal Credit has been formally established by the DWP. Increasing inflation and rising cost of living, which have considerably stretched household budgets across the UK, have encouraged the UK government to introduce a new initiative intended to reduce the effect of these rising expenses.
The government has acknowledged a 2025 increase in Universal Credit for eligible recipients. The increase in Universal Credit in 2025 will be based on the 6.7% inflation rate from September 2023. This move is a part of the continuing strategy of the government, which also discusses social security and poverty.
Universal Credit Increase Confirmed for Millions
The universal credit is a part of the review process of the standard benefits of the government, which began in April and was followed by additional adjustments in August and September. It was expected that it would support over 5.5 million households by offering them an average gain of around £470 annually. In this article, we will get to know about the eligibility criteria, the application process, and the increased amount of universal credit.
Overview of Universal Credit increase for millions
| Article on | Universal Credit increase for millions under new DWP plan. |
| Country | United Kingdom |
| Program name | Department for Work and Pensions |
| Increase rate | 6.7% (Based on September 2023 CPI inflation) |
| Average gain | £470 annually |
| Category | Government aid |
| Official website | Gov.uk |
What is Universal Credit?
Universal credit is a new initiative by the government that offers financial support to help people with low income, the unemployed, and those who are unable to work due to health conditions. Every year, the payment will be adjusted based on inflation to keep pace with the rising cost of living. It replaces six previous legacy benefits, which include;
- Working Tax Credit
- Income Support
- Employment and Support Allowance (income-related)
- Housing Benefit
- Child Tax Credit
- Job Seeker
These benefits are combined into one streamlined payment that is designed to ease the process of the welfare system for the people, so that they can understand and manage their finances. The payment of universal credit includes;
- A standard allowance that is based on the age and relationship status of applicants.
- Also include additional extra payment for the housing needs, children, and disabled people.
What is the goal of the universal credit increase?
The increase in universal credit is intended to mitigate the pressure of inflation that continues to affect the household budgets faced by vulnerable individuals and groups in society. It is an important benefit that aids millions of people in the UK, offering support to the low-income, the unemployed, and those who are unable to work due to health conditions. This initiative will offer sustenance to individuals in coping with the rising cost of living. In 2025, the increase in Universal Credit will be based on the 6.7% inflation rate from September 2023.
The increase in benefits is very important, but still, many families feel the pressure because of the expenses that are rising faster than the rate of benefits, including housing, food, and other essential expenses.
Nonetheless, these rises play a significant role in supporting people, managing basic costs, and reducing financial strain.
Eligibility Criteria for claiming Universal Credit
If you are on a low income or need assistance with your cost of living, then you may be able to get the Universal Credit. These are some necessities that you have to satisfy to pass the eligibility standards:
The candidate can file a claim for Universal Credit if they are working which including self-employed or part-time.
- If the candidate is not able to work because of medical conditions, then they can claim it.
- To claim, you have to live in the UK.
- The applicant must be 18 or older in some exceptional cases, if you are 16 to 17.
- You have to be under State Pension Age.
- If you have over £16000 in savings, then you may not be qualified for these benefits.
Universal Credit Increase: How Much can you expect in 2025?
The increase in Universal Credit is based on the 6.7% inflation rate from September 2023, and the amount you will receive depends on various factors like age, marital status, and whether you claim for other additional benefits like housing, disability, and housing support. The standard allowance you will get:
| How much will you get | Monthly standard allowance |
| Single under 25 | £316.98 |
| Single over 25 | £400.14 |
| Couple under 25 (for you both) | £497.55 |
| Couple over 25 (for you both) | £628.10 |
These amounts of universal credit only reflect the standard allowance, and if you are eligible for additional benefits, then those payments will also be increased by 6.7%.
How to Claim the Universal Credit 2025?
There is no need to apply for the Universal Credit Increase specifically if you are already a beneficiary under the Universal Credit; the changes are applied automatically to the existing claims. But if you are new to Universal Credit, then you can claim Universal Credit online. For this:
- You need to build an account to file a claim.
- Your claim must be complete within 28 days of opening the account.
- If the claim is not complete within this period, then you have to start it again.
- Your claim begins the procedure in the state you submit it in your account.
- If you are a couple, then you both need to create an account, and you can link them together at the time of submitting your claim.
- To claim online, you can claim by phone through the Universal Credit helpline.
There will be a need for access to a phone, an email address, and bank account information to apply online. The support from the Citizens Advice Bureau or the Universal Credit helpline can be used if this information is not available.
Final Thoughts
The increase in universal credit is important to cope with the Rising inflation and rising cost of living, which have significantly stretched household budgets across the UK, encouraging the UK government to announce a new advantage aimed at decreasing the impact of these rising expenses. So, if you are an existing beneficiary under Universal Credit, then it is important to consistently check the payment status, and if you face any problems, you can contact the Universal Credit helpline.
| Official Website | Click Here |
| Homepage | moyle-council.org |
