{"id":475023,"date":"2025-10-05T03:55:39","date_gmt":"2025-10-05T03:55:39","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/475023\/"},"modified":"2025-10-05T03:55:39","modified_gmt":"2025-10-05T03:55:39","slug":"how-major-universal-credit-payments-change-will-affect-millions-of-people","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/475023\/","title":{"rendered":"How major universal credit payments change will affect millions of people"},"content":{"rendered":"<p class=\"mb-4 text-lg md:leading-8 break-words\">A major change to universal credit (UC) is coming into force next year \u2013 meaning nearly 4 million households will see higher increases than last year.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The annual rise in rates for benefits such as universal credit, personal independence payments (PIP) and attendance allowance kicks in every April. For universal credit, this has &#8211; in recent years &#8211; been directly tied to the rate of inflation in September.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Last year, for example, inflation in September was 1.7%, meaning UC claimants&#8217; payments went up by that amount the following April.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">However, this is set to change over the next four years. Yahoo News explains what you need to know.<\/p>\n<p>What will happen to your universal credit payments?<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Universal credit is claimed by around 7.9 million people.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Last year, the government came under significant <a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/uk.news.yahoo.com\/inflation-increase-unfair-universal-credit-benefits-173301070.html\" data-ylk=\"slk:criticism for continuing to tie universal credit payments to inflation, which was just 1.7% in September 2024;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\" target=\"_blank\" rel=\"noopener\">criticism for continuing to tie universal credit payments to inflation, which was just 1.7% in September 2024<\/a> \u2013 the lowest it had been in three years.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Critics argued that the uprate didn&#8217;t come close to supporting lower-income families still struggling to cope following a prolonged cost-of-living crisis.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">In March, the government announced new proposals \u2013 which became law earlier this month under the Universal Credit Act \u2013 that it was changing how it would decide any increase in the <a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/uk.news.yahoo.com\/universal-credit-welfare-bill-benefits-changes-dwp-payments-095810522.html\" data-ylk=\"slk:universal credit standard allowance;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\" target=\"_blank\" rel=\"noopener\">universal credit standard allowance<\/a>.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The new rules mean that &#8211; for the next four years &#8211; UC payments will increase by the rate of inflation as before, but with an additional top-up cash payment.<\/p>\n<p>What does this mean for your next increase?<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">In April 2026, all universal claimants will see their payments rise by September&#8217;s rate of inflation (this figure will be announced in October), plus an additional 2.3%.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Therefore, if September&#8217;s inflation ends up being 2.5%, claimants will see their payments increase by 4.8%.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">It is widely expected that this will mean single people over the age of 25 claiming the standard allowance will see their payments increase by \u00a37 per week to \u00a398.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Couples and those under the age of 25 who claim universal credit will also benefit from a standard allowance increase.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The the follow years, the government has committed to increase UC payments by inflation plus the following amounts on top of that:<\/p>\n<ul class=\"mb-4\">\n<li class=\"ml-4 list-disc\"\/>\n<li class=\"ml-4 list-disc\"\/>\n<li class=\"ml-4 list-disc\"\/><\/ul>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The government says that, by 2029\/30, those claiming universal credit can expect to have received an additional \u00a3725 in total \u2013 though any final amount will depend on each claimant.<\/p>\n<p>What about changes to the health element of universal credit?<img alt=\"LONDON, ENGLAND - JUNE 30: Disabled people protest in Parliament square against welfare reforms on June 30, 2025 in London, England. Demonstrators are gathering under the slogan \" loading=\"lazy\" width=\"960\" height=\"640\" decoding=\"async\" data-nimg=\"1\" class=\"rounded-lg\" style=\"color:transparent\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/10\/7cb7fb50-5650-11f0-9ffe-d4a0aefcb9cd.jpeg\"\/><\/p>\n<p>Demonstrators took to the streets to protest the health top-up changes (Getty)<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The health top-up element of universal credit \u2013 which is claimed by around 3 million people \u2013 will be treated differently to the standard allowance.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Current claimants will see their payments increase in line with the rate of inflation in September, which will be announced next month.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">However, for those who start claiming <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/uk.news.yahoo.com\/universal-credit-welfare-bill-benefits-changes-dwp-payments-095810522.html\" data-ylk=\"slk:the health top-up element;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\" target=\"_blank\" rel=\"noopener\">the health top-up element<\/a> after April 2026, the monthly rate they are eligible for will drop from around \u00a3423 to approximately \u00a3217. This amount will remain the same until 2030.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">The change was part of significant \u2013 and controversial \u2013 wide-ranging reforms unveiled by Rachel Reeves during the budget in March.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">Labour&#8217;s new work and pensions secretary, <a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/uk.news.yahoo.com\/dwp-pip-payment-universal-credit-pensions-pat-mcfadden-124135121.html\" data-ylk=\"slk:Pat McFadden;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\" target=\"_blank\" rel=\"noopener\">Pat McFadden<\/a>, has signalled there are more changes to come.<\/p>\n<p class=\"mb-4 text-lg md:leading-8 break-words\">In an interview with <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/ca.news.yahoo.com\/welfare-reform-must-happen-minister-231008466.html\" data-ylk=\"slk:BBC News;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\" target=\"_blank\" rel=\"noopener\">BBC News<\/a>, McFadden said he has not ruled out tightening up eligibility for universal credit or removing entitlement for health-related universal credit payments to those under the age of 22.<\/p>\n","protected":false},"excerpt":{"rendered":"A major change to universal credit (UC) is coming into force next year \u2013 meaning nearly 4 million&hellip;\n","protected":false},"author":2,"featured_media":475024,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[3753,51,1700,3752,110852,157784,16,15,2377],"class_list":{"0":"post-475023","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-attendance-allowance","9":"tag-business","10":"tag-economy","11":"tag-personal-independence-payments","12":"tag-rate-of-inflation","13":"tag-uc","14":"tag-uk","15":"tag-united-kingdom","16":"tag-universal-credit"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115319545765717126","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/475023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=475023"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/475023\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/475024"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=475023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=475023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=475023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}