The Department for Work and Pensions today listed a host of changes to Universal Credit payments which will have a big impact on claimants and how much they will get. The alterations will see a rise in the amounts people will receive in a number of payments which they receive in Universal Credit.
The alterations have come into force today (April 8) and are a result of the inflation-based increase in benefits allowances, announced by Chancellor Jeremy Hunt. Universal credit claimants will receive a 6.7% increase, a rise which extends to other benefits including the personal independence payment, disability living allowance and employment and support allowance.
The changes today also include a big increase for people receiving the state pension who will get a 8.5% increase worth an extra £900 a year to full-rate claimants.
Here is a rundown of the changes for Universal Credit:
Universal Credit (monthly rates)
Single
Under 25: £311.68 (from £292.11)
25 or over: £393.45 (from £368.74)
Couple
Joint claimants both under 25: £489.23 (from £458.51)
Joint claimants, one or both 25 or over: £617.60 (from £578.82)
Universal Credit Childcare costs
If you pay for childcare while you go to work, Universal Credit can pay some of your childcare costs. This includes holiday clubs, after-school clubs and breakfast clubs. If you live with a partner, you both need to be working, unless your partner cannot look after your children.
From 8 April 2024 the most you can get back each month for childcare costs is £1,014.63 for one child (up from £951) and £1,739.37 for 2 or more children (Up from £1,630). Use a benefits calculator to see how much you might get.
Maximum childcare payment
If you’re a parent you can claim back up to 85% of your actual paid-out childcare costs. You could receive a maximum childcare payment of £1,014.63 for one child (from £950.92) and £1,739.37 for 2 or more children (from £1630.15).
Monthly work allowances
When you start work, the amount of Universal Credit you get will gradually reduce as you earn more. But unlike Jobseeker’s Allowance, your payment will not stop if you work more than 16 hours a week. Total income will be your earnings, plus your Universal Credit payment. In some cases, people may be eligible for a work allowance. A work allowance is the amount that you can earn before your Universal Credit payment is affected.
You will be eligible for a work allowance if you (and/or your partner) either have responsibility for a child and/or limited capability for work. From 8 April 2024, the monthly work allowances are set at £404 if your Universal Credit includes housing support and £673 if you do not receive housing support.
Child Amounts
First child (born before April 6, 2017): £333.33 (from £315.00)
First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): £287.92 (from £269.58)
Disabled Child Additions
Lower rate addition: £156.11 (from £146.31)
Higher rate addition: £487.58 (from £456.89)
Work Capability Elements
Limited Capability for Work: £156.11 (from £146.31) - only payable for claims before April 2017
Limited Capability for Work and Work-Related Activity: £416.19 (from £390.06)
Carer’s Element
£198.31 (from £185.86)
Non-dependants’ housing cost contributions
£91.47 (from £85.73)
