The DWP is set to hand out as much as £570 to people claiming Universal Credit thanks to two changes in the Budget announced on Wednesday.
The government has committed to uprating benefits by 1.7 percent from April 2025, which it says will be worth £150 a year extra for the average Universal Credit claimant.
But on top of this, the government has also announced some other changes that will hand even more money to those on the catch-all benefit.
Firstly, Universal Credit monthly debt reductions will be reduced, says Martin Lewis’ MSE, which could be worth an average of £420 back for the average benefit claimant.
This is where people who claim Universal Credit owe money in council tax arrears or unpaid social housing rent.
The debt is then deducted directly from your Universal Credit payments in some circumstances, leaving you with less to live on while you pay it back.
MSE says: “Universal Credit monthly debt deductions to be reduced. If you owe money for debts including rent, council tax, utility bills and advances in benefit payments, you can have deductions automatically taken from your monthly Universal Credit standard allowance.
“Currently, the cap on these deductions is up to 25%. Under new plans announced today, this cap will be lowered to up to 15% from April 2025. The Government says this could boost a claimant’s income by an average of £420 a year.”
Of course, Universal Credit is not just for people out of work or who can’t work, but it is often claimed by people in full-time employment as a top-up to their wages.
In fact, Martin Lewis’ MSE says those in work earning up to £35,000 could claim money on Universal Credit depending on their circumstances, such as if they have children and don’t live with an earning partner.
The uprating to benefits is lower than the increase for state pensioners. Pensioners will see their pension benefits increased by £470 for a full new state pension, or 4.1 percent.
