Millions of individuals receiving Universal Credit will experience a delay in receiving the increased payment rates set to take effect in April. The standard allowance for Universal Credit, which represents the entitlement before any deductions or additional components are factored in, will see an inflation-adjusted increase starting April 13.
For a single claimant aged 25 or older, the monthly standard allowance will climb from £400.14 to £424.90. However, due to Universal Credit being paid retrospectively, the higher payments will not be noticeable until June.
The elevated rates will only impact Universal Credit assessment periods commencing on or after April 13. Since Universal Credit payments are made a week after each assessment period concludes, the updated rates won’t come into effect until June payments.
Your assessment period determines the amount of Universal Credit you receive based on earnings or deductions during that period. Nearly eight million people in the UK claim Universal Credit.
Eligibility for Universal Credit hinges on personal circumstances such as age, living arrangements, relationship status, income, savings, and sometimes, physical and mental health.
For employed individuals, there is a taper rate that reduces the maximum Universal Credit payment as earnings increase. The taper rate stands at 55%, meaning 55p is subtracted from the maximum Universal Credit payment for every £1 earned.
Some individuals receive a “work allowance,” which is a fixed amount that can be earned before Universal Credit reductions kick in. The “work allowance” amounts to £411 monthly for those receiving housing assistance and £684 monthly for those who do not.
The full list of additional elements, reductions, or deductions for Universal Credit payments can be accessed on GOV.UK.