Millions of Universal Credit claimants will face a delay in receiving higher payments – despite rates increasing in April.
The Universal Credit standard allowance – the sum you’re entitled to before any deductions or additional elements are factored in – will increase above inflation from April 13.
For a single claimant aged over 25, their monthly standard allowance will increase from £400.14 to £424.90. However, as Universal Credit is paid in arrears, claimants won’t see the pay rise reflected until June.
The enhanced rates will only apply to Universal Credit assessment periods that commenced on or after April 13. Universal Credit payments are issued a week following the final date of each assessment period – meaning the new rates won’t come into effect until June payments.
Your assessment period is used to determine how much Universal Credit you receive, based on earnings or deductions during this timeframe. Universal Credit is claimed by nearly eight million people across the UK, reports the Mirror.
Your eligibility for Universal Credit depends on your personal circumstances, including your age, whether you live with anyone, your relationship status, income, savings, and occasionally your physical and mental health.
If you’re employed, there is a taper rate which diminishes your maximum Universal Credit payment as your earnings rise. The taper rate stands at 55%, which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.
Some claimants receive a “work allowance”, which is a fixed amount they can earn before their Universal Credit is reduced. The “work allowance” stands at £411 per month for those who also receive housing cost support, and £684 per month for those who don’t.
Limited Capability for Work
- Higher work allowance (no housing amount) one or more dependent children or limited capability for work: £710 a month (from £684)
- Lower work allowance one or more dependent children or limited capability for work: £427 a month (from £411)
The full list of additional elements and redactions or deductions for Universal Credit payments can be found on GOV.UK.
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