Rise in benefit payments confirmed for the new year
Universal Credit will be rising in the new year.(Image: Nick Wilkinson/Birmingham Live)
Millions of Universal Credit claimants will get a bumper above-inflation increase to payments in the new year.
The 6.2% rise has been confirmed by Chancellor Rachel Reeves as part of a “rebalancing” of the benefit.
It will see the monthly amount for single people over 25 go up by almost £25 a month.
READ MORE: Rachel Reeves to ‘punish’ state pensioners with small private pensions
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The new rates will kick in from April.
It will bring a considerable boost for millions of households, with inflation currently at 3.2%.
Added to this, the two-child benefit cap is also being scrapped.
This will allow parents with larger families to claim hundreds of pounds extra each year.
It’s not good news for everyone though.
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The Universal Credit health top-up is being cut by almost half for new claimants.
Citizens Advice said: “The amount of Universal Credit you get will change. This is because the Universal Credit ‘standard allowance’ is increasing.
“A monthly Universal Credit payment is made up of a standard allowance plus any additional amounts you might get based on your circumstances.
“You might also be affected by the April 2026 changes if you get the additional amount because you have a long-term health condition or a disability.
“This payment is called the ‘limited capability for work-related activity’ (LCWRA) element. The amount is decreasing for most people who aren’t already getting it.”