Universal Credit is a means-tested benefit designed to assist individuals and families with living costs.
It supports those on a low income, out of work, or unable to work, including carers.
As of April 8, 2024, Universal Credit rates have increased by 6.7%, which aligns with inflation, reflecting the rise in living costs.
This change applies to benefits like Personal Independence Payment and Carer’s Allowance.
Universal Credit Rates for 2024/2025
The introductory standard rate for Universal Credit varies based on personal circumstances.
For the year 2024/2025, the rates are as follows:
- Single adults (25 and over): £393.45 per month
- Single adults (under 25): £311.68 per month
- Couples (under 25): £489.23 per month
- Couples (one or both 25 and over): £617.60 per month
Monthly Standard Allowance Increase
Here’s a breakdown of the increases in the monthly standard allowance for 2024/2025 compared to the previous year:
| Circumstance | 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|---|
| Single and under 25 | £311.68 | £292.11 | £19.57 |
| Single and 25 or over | £393.45 | £368.74 | £24.71 |
| Couple (both under 25) | £489.23 | £458.51 | £30.72 |
| Couple (one or both 25 or over) | £617.60 | £578.82 | £38.78 |
Child and Disability Additions
If you are responsible for children, Universal Credit provides additional amounts:
- First child (born before April 6, 2017): £333.33
- First child (born on or after April 6, 2017): £287.92
- Second child: £287.92
For disabled children, the additional amounts are:
- Higher rate: £487.58
- Lower rate: £156.11
Childcare Costs
Universal Credit also helps with childcare costs, offering up to:
- One child: Maximum of £1,014.63
- Two or more children: Maximum of £1,739.37
Additional Allowances
If you have a medical condition affecting your ability to work, there are extra monthly amounts available:
- Limited capability for work: £156.11
- Limited capability for work and work-related activity: £416.19
If you provide care for someone at least 35 hours per week, you may be eligible for the carer amount, now set at £198.31.
Benefit Cap Increase
The benefit cap has also risen, allowing recipients to receive more; it is crucial for those balancing multiple income streams or benefits.
Eligibility for Universal Credit
Universal Credit is available to:
- Those who are unemployed or unable to work due to medical reasons
- Individuals working part-time or self-employed
- Unpaid carers
To qualify, you must:
- Live in the UK
- Be 18 or over (with some exceptions)
- Have less than £16,000 in savings
How to Apply for Universal Credit
You can apply for Universal Credit online or by calling the helpline at 0800 328 5644. When applying online, you will need:
- An email address
- A phone number
- Bank account details
- Proof of identity (like a passport or driving license)
Payment Structure
Universal Credit is paid monthly, usually directly into your bank account. If your payment date falls on a weekend, you’ll receive it on the preceding working day.
Note that there is typically a waiting period of about five weeks for your first payment. You can request an advance if needed.
With the recent increases in Universal Credit rates for 2024/2025, many recipients will see a significant boost in their monthly support.