Starting April 2024, Universal Credit payments in the UK will increase. This change, announced by the Department for Work and Pensions (DWP), is in response to a rise in inflation. Here’s a simple breakdown of what this means for claimants.
What is Universal Credit?
Universal Credit is a benefit payment for people who need financial help due to low income or unemployment. It supports millions of people in the UK, including those in Birmingham and other cities.
Why Is There an Increase?
The increase is due to inflation, which measures how prices are rising in the economy. The inflation rate for September 2023 was 6.7%, so benefits will rise by about 6.7% in April 2024. This means that monthly payments will go up by approximately £25.
How Much Will Payments Increase?
Here’s a breakdown of the new payment amounts starting April 2024:
- Under 25: The payment will increase from £292.11 to £311.68, a rise of £19.57.
- Over 25: The payment will go up from £368.74 to £393.45, an increase of £24.71.
- Couples (Both under 25): The payment will rise from £458.51 to £489.23, an additional £30.72.
- Couples (Both over 25): The payment will go up from £578.82 to £617.60, an increase of £38.78.
Who Will Benefit?
About 5.5 million households receiving Universal Credit will see these increases. The average annual gain is estimated to be £470. This adjustment is meant to help families cope with rising living costs.
Will This Increase Solve Financial Issues?
While the increase is helpful, some experts believe it might not be enough to cover all rising living costs. The New Economics Foundation suggests that despite the higher payments, many people may still struggle financially.
The Universal Credit payment increase starting April 2024 aims to help millions of people in the UK cope with inflation and rising costs. However, it may not fully address all financial challenges faced by claimants.
1. What is Universal Credit?
Universal Credit is a benefit payment for people with low income or who are unemployed, helping with financial support.
2. Why will Universal Credit payments increase?
Payments will increase due to a rise in inflation, which affects the cost of living.
3. How much will the payments increase by?
Payments will go up by about 6.7%, which is roughly £25 more per month.
4. Who will benefit from this increase?
Approximately 5.5 million Universal Credit households will benefit from this increase.
5. Will the increase be enough to cover rising costs?
Some experts believe the increase might not fully cover all rising living costs, leaving some claimants still struggling financially.
