New Universal Credit rates will kick in from April 2023.
All benefits will rise by 10.1%, in line with inflation. That works out as a £50 increase for the standard allowance, in some circumstances, but it depends on the claim.
Top ups for children, childcare and caring responsibilities will rise too, Birmingham Live reports. There are 5.8 million people in the UK claiming Universal Credit, half of those have children. Around 41% of claimants are in work and receive the benefits to top up wages.
Read more: Newcastle warm banks, where are they and how to use one
Universal Credit changes and new rates for the 2023/2024 financial year.
The new changes kick in at the start of the new financial year, which will be April 2023 to the end of March 2024
Universal Credit 2023/2024 rates
Guidance on the Government website says that how much Universal Credit you get depends on:
Payment rates (per month)
Standard allowance
- Single under 25 - increasing from £265.31 to £292.11
- Single 25 or over - increasing from £334.91 to £368.74
- Couple both under 25 - increasing from £416.45 to £458.51
- Couple one or both 25 or over - increasing from £525.72 to £578.82
Child amounts
- First child (born prior to 6 April 2017) - increasing from £290 to £315
- First child (born on or after 6 April 2017)/ second child and subsequent child (where an exception or transitional provision applies) - increasing from £244.58 to £269.58
Disabled child additions
- Lower rate addition - increasing from £132.89 to £146.31
- Higher rate addition - increasing from £414.88 to £456.89
LCW/LCWRA
- Limited Capability for Work amount - increasing from £132.89 to £146.31
- Limited Capability for Work and Work-Related Activity amount - increasing from £354.28 to £390.06
Carer amount
- Increasing from £168.81 to £185.86
Childcare costs amount
- Maximum for one child - staying the same at £646.35
- Maximum for two or more children - staying the same at £1108.04
Non-dependants' housing cost contributions
- Increasing from £77.87 to £85.73
Work allowances
- Higher work allowance (no housing amount) for one or more dependent children or limited capability for work - increasing from £573 to £631
- Lower work allowance for one or more dependent children or limited capability for work - increasing from £344 to £379
Daily reductions for sanctions
100% reduction rate
- Single under 25 - increasing from £8.70 to £9.50
- Single 25 or over - increasing from £11 to £12
- Joint claimants both under 25 (per sanctioned claimant) - increasing from £6.80 to £7.50
- Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant) - increasing from £8.60 to £9.40
40% reduction rate
- Single under 25 - increasing from £3.40 to £3.80
- Single 25 or over - increasing from £4.40 to £4.80
- Joint claimants both under 25 (per sanctioned claimant) - increasing from £2.70 to £3
- Joint claimants, one or both 25 or over (per sanctioned claimant) - increasing from £3.40 to £3.70
Third Party Deductions
5% of UC Standard Allowance taken off for debts or arrears owed to other people or organisations such as energy firms, local authorities and landlords (excludes deductions for rent and service charges that are already included in rent)
- Single under 25 - increasing from £13.27 to £14.61
- Single 25 or over - increasing from £16.75 to £18.44
- Joint claimants both under 25 - increasing from £20.82 to £22.93
- Joint claimants, one or both 25 or over - increasing from £26.29 to £28.94
Deductions for rent and service charges
Minimum deductions for rent and service charges included in rent at 10% of UC Standard Allowance (10% minimum introduced from Nov 2014)
- Single under 25 - increasing from £26.53 to £29.21
- Single 25 or over - increasing from £33.49 to £36.87
- Joint claimants both under 25 - increasing from £41.65 to £45.85
- Joint claimants, one or both 25 or over - increasing from £52.57 to £57.88
Maximum deductions for rent and service charges included in rent at 20% of UC Standard Allowance (20% maximum introduced from Nov 2014)
- Single under 25 - increasing from £53.06 to £58.42
- Single 25 or over -increasing from £66.98 to £73.75
- Joint claimants both under 25 - increasing from £83.29 to £91.70
- Joint claimants, one or both 25 or over - increasing from £105.14 to £115.76
Overall Maximum deduction Rate at 25% of UC Standard Allowance
- Single under 25 - increasing from £66.33 to £73.03
- Single 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Fraud Overpayments, Recoverable Hardship Payments and Administrative Penalties at 25% of UC Standard Allowance
- Single under 25 - increasing from £66.33 to £73.03
- Single 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Ordinary Overpayments
Ordinary Overpayments and Civil Penalties at 15% of UC Standard Allowance
- Single under 25 - increasing from £39.80 to £43.82
- Single 25 or over - increasing from £50.24 to £55.31
- Joint claimants both under 25 - increasing from £62.47 to £68.78
- Joint claimants, one or both 25 or over - increasing from £78.86 to £86.82
Ordinary Overpayments and Civil Penalties at 25% of UC Standard Allowance if claimant's and/or partner's earnings are over the Work Allowance
- Single under 25 - increasing from £66.33 to £73.03
- Single 25 or over - increasing from £83.73 to £92.19
- Joint claimants both under 25 - increasing from £104.11 to £114.63
- Joint claimants, one or both 25 or over - increasing from £131.43 to £144.71
Child Maintenance Deduction
- Staying the same at £36.40
Capital limits
This is how much claimants can have in savings before their Universal Credit is reduced or stopped altogether.
- Upper limit - staying the same at £16,000 (UC is stopped for amounts above this)
- Amount disregarded - £6,000 (UC is reduced for amounts above this)
- Assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit - staying the same at £4.35
Benefit Cap
- This is the maximum a claimant can receive in benefits, including Universal Credit and other types of Government support they get.
Annual level for Greater London
- Couples (with or without children) or single claimants with a child of qualifying age - increasing from £23,000 to £25,323 a year (equivalent to £2110.25 a month)
- Single adult households without children - increasing from 15,410 to £16,967 a year - (equivalent to £1413.92 a month)
Annual level for rest of Great Britain
- Couples (with or without children) or single claimants with a child of qualifying age - increasing from £20,000 to £22,020 a year (equivalent to £1,835 a month)
- Single adult households without children - increasing from £13,400 to £14,753 a year (equivalent to £1229.42 a month)
Read Next:
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- DWP pension credit backlog sees claimants waiting months for benefit money
- DWP errors: Over 200,000 people still owed over £1.2billion back-dated pension payments
