Changes to Universal Credit are on the horizon next year, set to affect numerous claimants across the UK.
Universal Credit, administered by the Department for Work and Pensions (DWP), is currently utilized by over eight million individuals in the country.
The upcoming alterations involve an increase in the standard allowance, which represents the fundamental payment in Universal Credit prior to any supplementary disbursements or deductions.
However, there are significant reductions slated for the health-related component for new Universal Credit applicants.
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Most of the older legacy benefits are being replaced by Universal Credit, with the final transition expected to be completed by March 2026.
Universal Credit is taking over from Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to switch to Universal Credit will be notified through a “migration notice” sent by mail, providing a three-month window to commence the claim process.
Some circumstances allow for the continuation of old benefits, such as the ability to retain Housing Benefit when residing in supported or temporary housing.
The standard allowance in Universal Credit will see a 6.2% increment from April onwards, surpassing the inflation rate. For individuals aged 25 and above, the standard allowance will climb