Charlotte Webster-
Thousands of Universal Credit claimants are set to experience a significant increase in their payments this month, following a previously announced hike in benefit rates.
In April, millions of benefit recipients, including those on Universal Credit, saw their payments rise by 6.7 percent. This increase was part of a broader adjustment announced by Chancellor Jeremy Hunt in the autumn statement of 2023.
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During his announcement, Mr. Hunt informed Members of Parliament in the House of Commons that the Government would raise Universal Credit and other benefits in line with September’s inflation figures. This adjustment, effective from April 1, equates to an average increase of £470 for approximately 5.5 million households.
However, due to the unique way Universal Credit payments are calculated—based on individual monthly assessment periods—some recipients are only now starting to see the increased rates reflected in their payments. The delay is attributed to the timing of these assessment periods, which determine when beneficiaries receive their adjusted payments.
Charity Turn2Us explained the delay, stating, “For many benefits, new rates took effect from April 8. However, for some Universal Credit claimants, increased rates will take effect around June.” This discrepancy arises because the new rate is applied from the first assessment period that begins on or after April 8.
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For example, if a claimant’s assessment period started on March 26 and ran until April 25, their payment—issued a week after the end of this period on May 2—would not reflect the increased rate. These claimants will only see the new rates in the payment following their next assessment period, which covers April 26 to May 25, making the increased rate visible in June.
This adjustment impacts a significant number of households, aligning benefit payments with current economic conditions and inflation rates. The increase aims to provide additional financial support to those relying on Universal Credit amidst rising living costs.
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