The Department for Work and Pensions (DWP) has confirmed a rise in Universal Credit payments as part of the annual benefit update. Starting April 7, 2025, most benefits—including Universal Credit—went up by 1.7%. This change was made to match the inflation rate (CPI) measured in September 2024
Although the rise was officially applied in early April, many claimants have only begun seeing the increase in May or June, depending on the timing of their monthly assessment periods. The DWP has also adjusted payment dates for early May due to the bank holiday.
What Does the 1.7% Increase Mean for Claimants?
A 1.7% rise may seem small, but for many families and individuals on low incomes, this boost can make a real difference. The actual increase in pounds depends on your personal circumstances—such as age, housing status, and family size.
For example, a single adult over 25 receiving the standard Universal Credit allowance would see their monthly payment rise from £393.45 to £400.13. Couples, parents, and people with health conditions will also notice slight increases based on their situation.
It's important to note that this is part of the regular annual update and not a one-off cost-of-living payment like the ones issued in recent years.
Why Payments Are Delayed for Some
Even though the new rates officially started on April 7, most people didn’t see the higher payments immediately. That’s because Universal Credit is paid based on monthly assessment periods, and the new rate only applies to the first full assessment period that began on or after April 7.
This means if your assessment period started on April 6 or earlier, your May payment was based on the old rate. If your period started on April 7 or later, you should see the new amount in your May or June payment, depending on your cycle.
Early May Payments Rescheduled
Because of the Early May Bank Holiday, which fell on Monday, May 6, the DWP confirmed that payments due on that date were instead paid on Friday, May 3. This change affected those receiving Universal Credit and other DWP benefits.
Bank holidays often shift payment dates to the working day before, which helps ensure people don’t face delays in receiving money they rely on. It's good practice to always check your bank account around holidays if you're expecting a payment.
How to Check If You're Getting the Right Amount
If you're unsure whether you've received the updated payment rate, you can easily check through your Universal Credit online journal. Each monthly statement lists how much you’re getting and how it was calculated.
You can also use free online benefit calculators from trusted websites like Turn2us, Entitledto, or Policy in Practice. These tools let you enter your personal information to get an estimate of how much support you should be getting. They’re especially useful if your income or household circumstances have changed.
If you're still unsure, speaking to a benefits adviser or contacting your local Jobcentre may help you get clear answers.
What Else Is Changing in 2025?
Aside from the Universal Credit increase, the DWP has also updated other benefits such as Personal Independence Payment (PIP), Employment and Support Allowance (ESA), and State Pension. Each benefit had its own adjusted rate based on the same 1.7% inflation figure.
These changes are designed to help keep up with rising living costs, although some charities argue that the increase is still too low to meet basic needs.
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