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Liverpool Echo
Liverpool Echo
World
William Morgan & Ryan Paton

DWP Universal Credit claimants could be in line for bumper Christmas payment

The Department of Work and Pensions (DWP) has confirmed claimants could be in line for a payment increase at the end of the year.

The UK is currently facing a cost-of-living crisis as people struggle amid soaring prices of energy, food and petrol. The cost of inflation has also hit record highs of over 9 per cent - as Mirror Online reports.

David Rutley MP was responding to a written question asking the government to review benefit payments, with the energy price cap in mind, which Martin Lewis has warned could increase to £3,000 by October. Mr Rutley confirmed no review would take place until November, but the DWP Secretary is "required to undertake an annual statutory review of benefits and pensions".

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The Macclesfield MP also confirmed that this increase would be either in line with inflation, earnings, or maybe higher than either. He said: "The Secretary of State must increase certain benefits by at least the increase in prices or earnings.

"If she considers it appropriate, having regard to the national economic situation and any other matters which she considers relevant, she may increase others by such a percentage(s) as she thinks fit."

How much could Universal Credit increase by?

This increase will be tagged to either the average increase in earnings, or the year-on-year inflation rate in September. The July earnings statistics saw year-on-year growth of 6.2 per cent in earnings, while the Consumer Price Index measure of inflation is currently running at 9.4 per cent, though this could grow even higher by September.

Using those official statistics, Universal Credit recipients could see their pay increase by almost £600 per year, if the DWP decide to increase benefits in line with inflation. Below are some projections of potential benefit increases, that Universal Credit claimants could see this November:

Single adults under 25 - Pay: +£16/month CPI: +£24/month

Single adults over 25 - Pay: +£20/month CPI: +£31/month

Joint Claimants both under 25 - Pay: +£25/month CPI: +£39

Joint Claimants both over 25 - Pay: +£32/month CPI: +£49

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