Millions of people across the UK are receiving a welcome increase in their Universal Credit payments starting April 2025. In an effort to combat the rising cost of living, the Department for Work and Pensions (DWP) has introduced a 1.7% uplift across all Universal Credit standard allowances and additional elements.
Here’s everything you need to know about the latest changes, how they affect you, and when to expect the extra money in your account.
What’s Changing in 2025?
The DWP’s annual adjustment to Universal Credit rates ensures payments stay in line with inflation. The 1.7% increase may seem small, but for many households, every bit counts—especially with housing, food, and energy prices continuing to climb.
These changes apply from April 2025, impacting both the standard allowance and additional elements for children, carers, disabled individuals, and others with specific needs.
Updated Universal Credit Rates – April 2025
| Category | 2024 Rate | 2025 Rate | Monthly Increase |
|---|---|---|---|
| Single (Under 25) | £311.68 | £316.98 | £5.30 |
| Single (25 and Over) | £393.45 | £400.14 | £6.69 |
| Couple (Both Under 25) | £489.23 | £497.55 | £8.32 |
| Couple (One or Both 25+) | £617.60 | £628.10 | £10.50 |
These amounts reflect monthly standard allowances before any extras are applied.
Increases to Extra Elements
In addition to the standard amount, claimants receiving additional support will also see small boosts:
- First Child (born before April 6, 2017): Up to £339.00
- Other children: Up to £292.81
- Disabled Child – Lower Rate: £158.76
- Disabled Child – Higher Rate: £495.87
- Carer Element: Increased to £201.68
- Limited Capability for Work and Work-Related Activity: Now £423.27
These changes offer targeted support to families with children and people living with disabilities or caring responsibilities.
Reduction in Deductions
One of the biggest improvements in 2025 is the reduction of the maximum deduction cap. Previously, up to 25% of a claimant’s Universal Credit could be withheld to repay debts (e.g., advance payments, overpayments, or third-party debts). That cap has now been lowered to 15%, giving families more money in hand every month.
When Will You See the Extra Money?
The new rates apply to assessment periods beginning on or after April 7, 2025. That means your first increased payment may arrive in May or June, depending on your personal Universal Credit assessment schedule.
It’s important to check your payment date and assessment period in your Universal Credit journal or online account.
How Much Will You Gain?
The average household receiving Universal Credit is expected to gain around £150 more per year. While the increase doesn’t solve all financial challenges, it is designed to help ease ongoing financial pressure for the 5.7 million households currently receiving UC support.
The 2025 Universal Credit increase is a step in the right direction for households struggling with the cost of living. The 1.7% uplift, combined with lower deductions and updated additional elements, offers a small but significant improvement for claimants across the UK.
To make the most of your entitlement, review your assessment dates, ensure your details are up to date, and look out for the changes in your next monthly payment.
FAQs
How do I know if I’m getting the new Universal Credit amount?
Check your next payment statement through your online account. The new rate applies to assessment periods starting on or after April 7, 2025.
Will my deductions be automatically reduced to 15%?
Yes. If you were having deductions up to 25%, they will be adjusted down to a maximum of 15%, increasing your take-home amount.
Do I need to apply for the increase?
No. All increases are automatic—you do not need to apply or contact the DWP unless your circumstances change.