How Much is Universal Credit Going Up in 2025?
Universal Credit serves as a crucial financial lifeline for millions of individuals and families across the UK. It provides a single monthly payment to those on low incomes, including jobseekers, people with disabilities, and those with childcare responsibilities.
Each year, the Department for Work and Pensions (DWP) adjusts Universal Credit payments to reflect changes in inflation and the cost of living. For 2025, the increase in Universal Credit payments is a topic of significant interest for claimants eager to understand how it will impact their finances.
This blog will offer a detailed analysis of how much is universal credit going up in 2025, including the new rates for standard allowances, child elements, disability payments, and work allowances.
By the end, you will have a clear understanding of the changes, the reasoning behind them, and how they might impact your household finances.
What is the Process of Universal Credit?
Universal Credit is a means-tested benefit provided by the UK government. It replaces older benefits such as Jobseeker’s Allowance, Income Support, Housing Benefit, and Child Tax Credit.
Universal Credit aims to simplify the benefits system and ensure that claimants receive a single, consolidated monthly payment.
Each year, Universal Credit rates increase to keep pace with inflation and the cost of living. The increase is based on the Consumer Price Index (CPI) inflation rate for the previous September.
For example, the increase in Universal Credit for 2025 will be determined by the inflation rate recorded in September 2024.
Why Does Universal Credit Increase Annually?
Key reasons for the annual increase include:
- Inflation: To ensure the payment keeps pace with rising prices of essential goods and services.
- Economic Conditions: Factors like the cost of living crisis may prompt larger increases.
- Government Policy: The UK government may decide to provide additional support for vulnerable groups.
How Much is Universal Credit Going Up in 2025?
The amount by which Universal Credit increases for 2025 is determined by the UK government’s commitment to adjusting benefits in line with the rate of inflation.
The primary method used to calculate the increase is based on the Consumer Price Index (CPI) inflation rate recorded in September 2024. This approach ensures that payments keep pace with the rising cost of living, helping claimants maintain their purchasing power despite economic changes.
1. The Role of Inflation in Benefit Increases
The key factor in calculating the increase is the CPI, which measures changes in the prices of essential goods and services like food, housing, transport, and energy.
For example, if the inflation rate for September 2024 is recorded at 6%, then most Universal Credit payments will be increased by 6%. This method ensures that claimants have the financial support needed to meet everyday expenses, especially during periods of economic uncertainty.
2. Government Review and Announcement
After the CPI figure is published in October 2024, the Department for Work and Pensions (DWP), in collaboration with the Chancellor of the Exchequer, finalizes the new payment rates.
These changes are typically announced during the Autumn Budget, which takes place in November. The revised rates are implemented at the start of the new financial year in April 2025. This process allows sufficient time for adjustments to be communicated to claimants.
3. Additional Factors Affecting the Increase
While inflation is the key determinant, other factors may influence the final increase, including:
- Economic Conditions: Economic downturns or cost-of-living crises may prompt the government to offer larger increases.
- Political Pressure: Advocacy groups and social justice campaigns may push the government for higher increases to protect vulnerable groups.
- Government Budget: The Chancellor may introduce additional one-off payments or hardship funds to further support low-income households.
In summary, the increase in Universal Credit for 2025 will be driven by the CPI inflation rate for September 2024. After a review by the DWP and Treasury, the new rates will be officially announced in the Autumn Budget, with changes taking effect in April 2025.
What is the Universal Credit Payment Rates for 2024/2025?
The Universal Credit payment rates for 2024/2025 have seen a notable increase compared to the previous financial year. These changes aim to provide better financial support for individuals, couples, and families facing economic challenges.
The increase reflects the government’s efforts to keep payments aligned with inflation, ensuring that claimants can maintain their purchasing power amid the ongoing cost-of-living crisis.
Universal Credit payments consist of a Standard Allowance, which forms the base rate for all claimants. On top of this, additional payments are made for specific circumstances, such as child elements, disability additions, and housing costs. This system ensures that payments are tailored to the unique needs of each household.
Below is a detailed breakdown of the key Universal Credit rates for 2024/2025, with a comparison to the rates from the previous year.
1. Universal Credit Standard Allowance
The Standard Allowance is the baseline amount of Universal Credit that claimants receive each month. The amount depends on the claimant’s age and relationship status (whether they are single or part of a couple). For 2024/2025, the rates have been increased to provide additional support for claimants.
| Claimant Type | 2023/2024 Rate (£) | 2024/2025 Rate (£) | Increase (£) |
| Single claimant (under 25) | £292.11 | £311.68 | +£19.57 |
| Single claimant (25 or over) | £368.74 | £393.45 | +£24.71 |
| Couple (both under 25) | £458.51 | £489.23 | +£30.72 |
| Couple (one or both 25 or over) | £578.82 | £617.60 | +£38.78 |
What Do Standard Allowance Changes Mean for You?
- If you’re a single claimant over 25, your standard allowance will increase from £368.74 to £393.45 per month, offering an extra £24.71 each month.
- If you’re a couple where one or both partners are 25 or older, your payment will increase from £578.82 to £617.60 per month, providing an additional £38.78 monthly.
These changes are aimed at providing relief for low-income households that are feeling the financial strain caused by rising costs of food, energy, and housing.
2. Universal Credit Child Elements
If you are responsible for children who live with you, you are entitled to an extra payment known as the Child Element. The amount you receive depends on the number of children you have and when they were born. For children born before 6 April 2017, a higher rate is provided compared to those born after this date.
| Child Element Type | 2023/2024 Rate (£) | 2024/2025 Rate (£) | Increase (£) |
| First child (born before April 2017) | £315.00 | £333.33 | +£18.33 |
| First child (born on or after April 2017) | £269.58 | £287.92 | +£18.34 |
| Second child and additional children | £269.58 | £287.92 | +£18.34 |
What Do Child Elements Changes Mean for You?
- Parents of a first child born after 6 April 2017 will see an increase from £269.58 to £287.92 per month, providing an additional £18.34 each month.
- If you have a first child born before 6 April 2017, the amount will increase from £315.00 to £333.33 per month, an increase of £18.33.
- Additional children will be entitled to a payment of £287.92 per month, up from £269.58, giving you £18.34 more per child.
These increases are designed to provide extra support for parents and guardians who face rising childcare costs.
3. Disability Additions for Children
If you care for a child with a disability, you may be eligible for an additional amount called a Disability Addition. The payment is provided at either a “higher rate” or a “lower rate” depending on the severity of the child’s condition.
| Rate Type | 2023/2024 Rate (£) | 2024/2025 Rate (£) | Increase (£) |
| Higher rate | £456.89 | £487.58 | +£30.69 |
| Lower rate | £146.31 | £156.11 | +£9.80 |
What Do Disability Additions Changes Mean for You?
- If you qualify for the higher rate disability addition, you’ll receive £487.58 per month, up from £456.89, giving you an extra £30.69 each month.
- If your child qualifies for the lower rate disability addition, the amount will increase from £146.31 to £156.11, providing an additional £9.80 per month.
These changes aim to offer increased support for households caring for children with additional needs.
4. Work Allowances
A Work Allowance is the amount a claimant can earn before their Universal Credit payment is reduced. It applies to claimants responsible for children or those with limited capacity to work.
The higher work allowance applies if you do not receive the housing element of Universal Credit, while the lower work allowance applies if you do.
| Allowance Type | 2023/2024 Rate (£) | 2024/2025 Rate (£) | Increase (£) |
| Higher work allowance | £631.00 | £673.00 | +£42.00 |
| Lower work allowance | £379.00 | £404.00 | +£25.00 |
What Do Work Allowances Changes Mean for You?
- If you are on the higher work allowance, the amount you can earn before your benefits are reduced will increase from £631.00 to £673.00, providing an extra £42.00 each month.
- If you qualify for the lower work allowance, you’ll see an increase from £379.00 to £404.00, an increase of £25.00.
These changes offer greater financial incentives for claimants to seek employment opportunities while maintaining access to Universal Credit support.
5. Carer Element
If you provide care for someone for at least 35 hours per week, you may be entitled to the Carer Element of Universal Credit. This element is in addition to any other allowances you receive.
| Allowance Type | 2023/2024 Rate (£) | 2024/2025 Rate (£) | Increase (£) |
| Carer Element | £185.86 | £198.31 | +£12.45 |
What Do Carer Element Changes Mean for You?
- If you provide unpaid care for 35 hours or more per week, your monthly payment will increase from £185.86 to £198.31, offering you an extra £12.45 each month.
This change reflects the government’s recognition of the vital role played by unpaid carers in supporting vulnerable people.
How Will the Universal Credit Increase Impact Households?
The Universal Credit increase for 2025 is set to bring much-needed financial relief to millions of households across the UK.
As inflation and the cost of living continue to rise, the government’s decision to increase Universal Credit rates is intended to ease the financial strain on low-income families, individuals with disabilities, and those struggling to meet the rising costs of essentials like food, housing, and utilities.
The impact of this increase will vary depending on individual household circumstances, such as family size, number of children, and eligibility for additional payments like disability elements or childcare support. Below, we explore how different groups of claimants will be affected by the 2025 increase in Universal Credit.
Single Claimants
For single claimants, especially those without dependents, the increase in the Standard Allowance will provide extra financial stability.
The monthly payment for single claimants over 25 will rise from £368.74 to £393.45, offering an additional £24.71 per month. For those under 25, the payment will increase from £292.11 to £311.68, providing an extra £19.57 per month.
Impact on Single Households
- Improved Financial Flexibility: The increase will help claimants cover essential expenses such as rent, food, and utility bills.
- Reduced Financial Stress: The additional income will reduce reliance on short-term loans, payday lenders, or credit card debt.
- Greater Stability for Young Claimants: Young claimants (under 25) will see their payment increase by £19.57 per month, providing some financial breathing room as they search for stable employment or complete training.
Couples and Joint Claimants
Couples who claim Universal Credit together will also experience a significant increase in their Standard Allowance.
For couples where one or both partners are 25 or older, their monthly payment will rise from £578.82 to £617.60, offering an extra £38.78 per month. For couples where both partners are under 25, the payment will increase from £458.51 to £489.23, providing an additional £30.72 per month.
Impact on Couples
- Increased Household Income: Couples will receive up to £38.78 more per month, or £465.36 more annually, which can be used to pay rent, bills, or save for emergencies.
- Support for Working Couples: If both partners are working, the extra income can offer more stability as they deal with fluctuating wages or reduced working hours.
- Reduced Need for Emergency Borrowing: The increase may reduce the need for payday loans or credit cards, helping couples avoid debt cycles.
Households with Children
Households with children are among the biggest beneficiaries of the 2025 Universal Credit increase. Changes to the Child Element and Disability Additions mean parents will receive higher monthly payments for their children.
Breakdown of Child Element Increases
- First child (born before April 2017): Payment will increase from £315.00 to £333.33, an increase of £18.33 per month.
- First child (born on or after April 2017): Payment will increase from £269.58 to £287.92, an increase of £18.34 per month.
- Second child or additional children: Payment will increase from £269.58 to £287.92, an increase of £18.34 per month.
Impact on Families with Children
- Greater Financial Security for Families: Parents with multiple children will see their child element payments increase by over £18 per child each month, providing additional support for everyday expenses like food, school supplies, and childcare costs.
- Improved Child Welfare: With rising costs of food, clothing, and education, the increase in payments will provide families with more funds to care for their children.
- Higher Savings for Households: Larger child payments can help parents set aside money for emergencies or unexpected expenses, reducing financial stress.
Households with Disabled Children
Families with disabled children are eligible for the Disability Addition of Universal Credit, which also sees an increase for 2025. The Higher Disability Addition will increase from £456.89 to £487.58, a rise of £30.69 per month. The Lower Disability Addition will increase from £146.31 to £156.11, a rise of £9.80 per month.
Impact on Households with Disabled Children
- More Resources for Care Needs: Families caring for disabled children may need extra resources for specialized equipment, therapy, or medical treatment. The increased payments will help parents cover these additional expenses.
- Relief for Caregivers: Carers often face significant financial strain, especially when they cannot work full-time due to caregiving responsibilities. The extra £30.69 for higher-rate payments can provide more financial support.
- Access to Education and Learning Resources: Parents can use the increased payment to access learning tools, therapy, or specialized training programs that support children with disabilities.
Carers and Caregivers
The Carer Element of Universal Credit is paid to people who care for someone for at least 35 hours per week. For 2025, this payment will increase from £185.86 to £198.31, providing an extra £12.45 per month.
Impact on Carers
- Financial Support for Carers: Carers often face financial strain as they balance caregiving with employment. The extra £12.45 per month provides some financial relief, especially for unpaid carers.
- Recognition of Unpaid Care Work: This increase signals the government’s acknowledgment of the essential role played by carers, many of whom give up paid employment to care for loved ones.
- Additional Resources for Care Needs: The increased payments can help carers cover essential costs like transport, medical supplies, and additional support for the person they care for.
Conclusion
The 2025 Universal Credit increase will bring significant relief for millions of claimants. From higher standard allowances to larger payments for child elements, the increase reflects the government’s efforts to address inflation and the cost of living crisis.
FAQs About Universal Credit in 2025
When will Universal Credit rates increase in 2025?
The new Universal Credit rates will come into effect from April 2025, following the Chancellor’s announcement in November 2024.
How much will Universal Credit increase by in 2025?
The exact increase will depend on the Consumer Price Index (CPI) for September 2024, but it is expected to be around 5-7%.
What is the Universal Credit standard allowance for 2025?
The monthly allowance for a single adult over 25 will increase from £368.74 to £393.45, while for couples, it will rise from £578.82 to £617.60.
What happens if my Universal Credit payment is incorrect?
If you believe your payment is incorrect, you can request a Mandatory Reconsideration from the DWP.
Does the Universal Credit increase apply to all claimants?
Yes, the increase applies to all Universal Credit claimants, but specific elements like child elements and disability additions only apply to those eligible.
