How Much is Universal Credit Going Up in April? | New Rates for 2025

Universal Credit is a cornerstone of the UK welfare system, designed to provide vital financial assistance to millions of individuals and families.

As the cost of living continues to rise, annual adjustments to Universal Credit ensure that payments remain aligned with economic realities.

April 2025 marks another crucial milestone in this system, as new rates are set to come into effect, offering increased support to claimants.

In this blog, we delve into the specifics of the Universal Credit increase for April 2025. We explore how much the rates are rising, the reasons behind these changes, and their impact on households across the UK.

Whether you are a claimant or someone seeking to understand these updates, this comprehensive guide provides everything you need to know.

What is Universal Credit?

Universal Credit is a monthly payment that replaces several older benefits, including Housing Benefit, Child Tax Credit, and Jobseeker’s Allowance.

Its primary goal is to streamline support for individuals who are unemployed, on a low income, or unable to work. The payment is calculated based on individual circumstances, such as housing needs, children, and disabilities.

Why Does Universal Credit Change Annually?

Each year, the UK government reviews Universal Credit rates. This annual process, known as “benefit uprating,” ensures that payments keep pace with economic factors like inflation.

The Consumer Price Index (CPI) is a key metric used to determine the rate of increase. By adjusting these rates, the government aims to maintain the purchasing power of Universal Credit, providing claimants with consistent support amidst changing economic conditions.

Is Universal Credit Going Up in 2025?

Yes, Universal Credit is set to increase in April 2025. The UK government has confirmed that rates will rise to reflect ongoing inflation and the higher cost of living.

This announcement is part of the broader annual benefit uprating process, which affects a range of welfare payments across the country.

Due to the increase in line with the Consumer Price Index (CPI), Universal Credit standard allowances for the 2025/26 financial year will be adjusted as follows:

• Single people aged under 25: The monthly allowance will rise from £311.68 to £316.98.

This increase aligns with the government’s commitment to protecting low-income households and ensuring that social safety nets remain effective.

For many families, these adjustments represent essential financial relief, helping them manage rising costs in areas such as housing, energy, and food.

How Much is Universal Credit Going Up in April 2025?

The UK government has announced a 1.7% increase in Universal Credit rates, effective from April 2025, in line with the Consumer Prices Index (CPI) inflation rate recorded in September 2024.

Below is a breakdown of the updated monthly standard allowance rates:

Standard Allowance Rates (Monthly):

• Single under 25: £316.98 (up from £311.68 in 2024)
• Single 25 or over: £400.13 (up from £393.45 in 2024)
• Joint claimants both under 25: £497.55 (up from £489.23 in 2024)
• Joint claimants one or both over 25: £628.10 (up from £617.60 in 2024)

Additional Elements:

• First child (born before 6 April 2017): £290.00 (up from £285.00 in 2024)
• First child (born on or after 6 April 2017) or second child and subsequent children: £244.58 (up from £240.50 in 2024)
• Limited Capability for Work and Work-Related Activity: £354.28 (up from £348.30 in 2024)
• Carer Element: £176.99 (up from £174.00 in 2024)

This 1.7% increase aims to help claimants manage the rising cost of living by ensuring that Universal Credit payments keep pace with inflation.

These adjustments are part of the government’s commitment to providing financial stability for low-income households across the UK.

Why is Universal Credit Increasing in April 2025?

Universal Credit rates will increase in April 2025 due to inflation, which will measure the rise in prices for goods and services over time.

The government has announced that inflation-linked benefits, including Universal Credit, will rise by 1.7%. This adjustment is based on the Consumer Prices Index (CPI) rate of inflation recorded in September 2024.

As inflation pushes up the cost of essentials such as food, energy, and transportation, household budgets are impacted significantly.

The 1.7% increase reflects the government’s commitment to supporting claimants during these challenging economic times.

This annual adjustment is also part of a broader effort to ease the effects of the cost-of-living crisis.

By ensuring that Universal Credit rates are aligned with inflation, the government aims to help individuals and families maintain a reasonable standard of living while managing rising expenses effectively.

What Are the Factors Influencing the Universal Credit Increase?

The annual adjustments to Universal Credit are determined by several key factors aimed at ensuring financial support aligns with the needs of claimants.

These include:

• Inflation: The Consumer Price Index (CPI) is a primary benchmark for calculating increases, reflecting the overall rise in living costs.
• Economic Conditions: Wage growth, employment rates, and broader economic trends directly influence the adjustments.
• Government Policies: Changes in social welfare funding and policy decisions play a pivotal role in determining the extent of rate increases.
• Cost-of-Living Pressures: Rising costs in essential areas such as housing, energy, and food are critical considerations for ensuring adequate support.

By considering these factors, Universal Credit adjustments aim to maintain relevance and provide adequate financial aid to those in need, reflecting shifts in economic and social conditions while addressing cost-of-living challenges.

How Are Universal Credit Rates Calculated?

The calculation of Universal Credit rates involves several steps. The government uses the inflation rate, typically measured by the Consumer Price Index, as a benchmark for increases.

This figure is combined with policy considerations, such as budget constraints and the government’s priorities for welfare spending.

Once the rates are determined, they are announced in Parliament and published on official platforms like GOV.UK.

These rates are then applied to all claimants based on their eligibility criteria, such as age, relationship status, and additional needs.

Will Everyone Get the Same Universal Credit Increase in 2025?

No, the Universal Credit increase varies based on individual circumstances. While the standard allowance sees a uniform percentage rise, additional elements like the Child Element or Limited Capability for Work vary according to specific needs.

For example, a claimant with children or disabilities will see a higher overall payment due to the inclusion of these additional components.

However, every claimant will benefit from the standard allowance increase, ensuring that all recipients see some level of financial improvement.

What Other Benefits Are Increasing Alongside Universal Credit in 2025?

In April 2025, several other benefits will see increases, reflecting the government’s efforts to provide more comprehensive financial support.

These adjustments are designed to address the rising cost of living and ensure the welfare system meets the needs of claimants.

• Housing Benefit: Adjusted to accommodate rising rental costs, easing the burden on households.
• Personal Independence Payment (PIP): Updated to provide better support for individuals living with disabilities.
• Child Benefit: Increased to help families manage growing expenses associated with raising children.
• Carer’s Allowance: Boosted to reflect inflation, acknowledging the essential role of carers.

These changes form part of a broader approach to welfare reform, ensuring that financial assistance remains fair and responsive.

By adjusting multiple benefits, the government aims to enhance overall support and address diverse financial pressures faced by claimants in the current economic climate.

How Can I Check My Universal Credit Update for 2025?

To check your Universal Credit updates for 2025, sign in to your Universal Credit account. Through your account, you can:

• Apply for an advance on your first payment.
• View your payment statement.
• Report any changes in your circumstances.
• Add notes to your journal.
• Check your to-do list.
• See when your next payment is due.
• Review your Claimant Commitment.

Use the username and password you created when you first applied for Universal Credit. If you’ve forgotten your login details, you can request a reminder through the account portal.

Staying up to date with your account helps you manage your payments and address any queries efficiently.

If you need further assistance, the Universal Credit helpline is also available to provide guidance. This proactive approach ensures that you remain informed and in control of your financial support.

Will Universal Credit Be Affected by Future Inflation?

Future inflation will continue to impact Universal Credit payments as the government conducts annual reviews to adjust rates based on economic conditions. However, there are growing concerns from charities about the adequacy of these increases, especially for those relying solely on benefits.

While wages are rising at a faster pace, helping to offset some price increases, the situation for benefit claimants remains challenging.

Analysts predict that most working-age benefits, including Universal Credit, will rise by only 1.7% in April 2025. This increase is expected to fall below the rate at which prices are rising, potentially reducing the actual value of payments for claimants.

The government’s commitment to yearly adjustments ensures some relief, but the gap between benefit increases and inflation may leave low-income households struggling to keep up with the cost of living. These concerns highlight the importance of monitoring future policy decisions.

Conclusion

The April 2025 Universal Credit increase provides essential financial relief to millions of claimants in the UK, helping to combat the challenges posed by rising living costs.

By aligning payments with inflation, the government aims to offer meaningful support to vulnerable households and ensure they can better manage their expenses.

Understanding these changes is crucial for claimants to effectively plan their finances and make the most of the support available.

As we move through 2025, Universal Credit continues to serve as a critical resource, providing stability and assistance to those in need. Staying informed and proactive can help recipients maximise the benefits of this vital lifeline.

FAQs

What is the Standard Universal Credit Rate for 2025?

The standard rates depend on factors like age and relationship status. For instance, single claimants aged 25 or older are set to receive £316.98.

How Will the Universal Credit Rate Increase Impact Low-Income Households?

The increase offers crucial financial support, helping families cope with higher living costs. It aims to alleviate some economic pressures on low-income households.

Can I Expect My Housing Benefit to Change with the Universal Credit Increase?

Yes, Housing Benefit is adjusted in line with Universal Credit to reflect changes like rising rents. This ensures housing support remains relevant to current costs.

Are There Additional Cost-of-Living Payments in 2025?

Additional payments may be announced to support vulnerable groups. These payments will depend on specific government policies.

Can Universal Credit Rates Decrease for Some People?

While rates usually increase, personal circumstances like higher earnings could reduce payments. Any changes are based on individual assessments.

Will There Be Any Delays in Receiving the Universal Credit Increase?

The new rates are expected to be implemented as scheduled in April 2025. Delays are not anticipated but could occur due to unforeseen administrative issues.

How Can I Apply for Universal Credit in 2025?

You can apply online through GOV.UK or visit local support centres for assistance. The application process remains straightforward and accessible.