DWP to make three Universal Credit changes in April - full list
Reach Daily Express January 20, 2025 11:39 PM

The Department for Work and Pensions () is set to make three changes to in April as part of new government reforms aimed at overhauling the system.

These changes are aimed at providing more support to low-income families and individuals facing the cost-of-living crisis, while also streamlining the benefits process.

Universal Credit helps those facing financial hardship due to low income, unemployment, or having health conditions that prevent them from working.

To be eligible, claimants must be aged between 18 and 65, live in the UK, and have savings of less than £16,000.

Here are three key changes set to take effect in April:

Universal Credit to replace Tax Credits

In a move aimed at simplifying the benefits system, Universal Credit will replace Tax Credits for eligible families.

are set to end on April 5, 2025, and affected claimants will need to take action to migrate to Universal Credit when they receive a notification from the DWP.

This change will impact thousands of families still receiving Child Tax Credit or Working Tax Credit.

Increase in the Standard Allowance

The government is set to raise the Standard Allowance for Universal Credit recipients, providing additional support for those on the lowest incomes.

The Standard Allowance is the basic payment provided to Universal Credit claimants to help cover essential living costs, before any additional amounts for specific needs or circumstances are added.

In line with September's Consumer Price Index (CPI) inflation rate, Chancellor Rachel Reeves confirmed that benefit payment rates will rise by 1.7% in April. As a result, the Standard Allowance will increase from £311.68 to £316.98 per month for single individuals under 25, and from £393.45 to £400.14 per month for those aged 25 or over.

Joint claimants under 25 will see their monthly payments rise from £489.23 to £497.55, while those aged 25 or over will see an increase from £617.60 to £628.10.

Increase in 'extra amount' payment rates

The rates for 'extra amount' payments, which offer additional support to individuals facing specific challenges such as disability or caring responsibilities, will also see a boost.

The child element rate for the first child born before April 6, 2017, will rise from £333.33 to £339 per month.

For children born on or after that date, as well as for second and subsequent children, the rate will increase from £287.92 to £292.81 per month. Additionally, the lower rates for disabled children will rise from £156.11 to £158.76 per month, while the higher rates will increase from £487.58 to £495.87 per month.

Last year, by Policy in Practice found the total amount of unclaimed welfare benefits and support increased to £22.7billion, up from £19billion the previous year.

The report estimates that over eight million people could be missing out on an average of £2,700 per year in rights-based benefits.

Claire Atchia McMaster, director of income and external affairs at anti-poverty charity Turn2us, said: "We encourage everyone to complete a regular benefits calculation to ensure you are accessing all available support. You can do this on both the Turn2us and Policy in Practice websites. In 2023, 60% of users on the Turn2us Benefits Calculator identified new benefits they were eligible for."

People can click here to access the and benefit calculators.

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