Universal Credit Rates 2025: Payment Increase, Eligibility, and How to Claim
Department for Work and Pensions (DWP) has confirmed two increases to Universal Credit payments to help households manage rising living costs. Rates rose by 6.7% in April 2024, and a further 1.7% increase is due in April 2025. This article explains exactly how much you could receive, who qualifies, and how to apply.
Universal Credit Rates for 2025
niversal Credit is a monthly payment for people on low incomes, out of work, or unable to work due to illness, disability, or caring responsibilities. The government adjusts rates yearly based on inflation.
- April 2024: A 6.7% rise (the largest in years) to match inflation.
- April 2025: A smaller 1.7% increase.
Pensioners will see a bigger boost (4.1%) due to the triple lock, which guarantees pensions rise by the highest of inflation, wage growth, or 2.5%. Your payment depends on your age, relationship status, and whether you have children, disabilities, or childcare costs.
1. Standard Allowances (Monthly)
| Your Situation | 2024/2025 Rate | 2023/2024 Rate | Yearly Increase |
|---|---|---|---|
| Single, under 25 | £311.68 | £292.11 | +£234.80 |
| Single, 25 or over | £393.45 | £368.74 | +£296.52 |
| Couple, both under 25 | £489.23 | £458.51 | +£368.64 |
| Couple, one/both 25 or over | £617.60 | £578.82 | +£465.36 |
2. Extra Amounts for Children
| Child Details | 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|---|
| First child (born before 6 April 2017) | £333.33 | £315.00 | +£18.33 |
| First child (born after 6 April 2017) | £287.92 | £269.58 | +£18.34 |
| Second child | £287.92 | £269.58 | +£18.34 |
Disabled Child Support
| Rate | 2024/2025 Monthly Payment | Increase |
|---|---|---|
| Higher disability rate | £487.58 | +£30.69 |
| Lower disability rate | £156.11 | +£9.80 |
3. Childcare Costs
Universal Credit reimburses up to 85% of childcare costs if you’re working:
| Number of Children | 2024/2025 Max Monthly Support | Increase |
|---|---|---|
| One child | £1,014.63 | +£63.71 |
| Two or more children | £1,739.37 | +£109.22 |
4. Support for Disabilities and Carers
Limited Capability for Work
| Assessment | 2024/2025 Monthly Rate | Increase |
|---|---|---|
| Basic rate (can work in future) | £156.11 | +£9.80 |
| Higher rate (unable to work now or soon) | £416.19 | +£26.31 |
Carer’s Allowance
If you provide 35+ hours of weekly care:
| 2024/2025 Monthly Rate | Increase |
|---|---|
| £198.31 | +£12.45 |
5. Work Allowances
This is what you can earn before your payment reduces:
| Your Situation | 2024/2025 Monthly Allowance | Increase |
|---|---|---|
| Higher allowance (no housing costs claimed) | £673.00 | +£42.00 |
| Lower allowance (housing costs claimed) | £404.00 | +£25.00 |
What to Expect in April 2025
The 1.7% rise will apply to all Universal Credit elements. For example:
- Single, 25+: £393.45 → £400.14/month (+£6.69).
- Couple, 25+: £617.60 → £628.10/month (+£10.50).
Who Can Claim Universal Credit?
You qualify if you:
- Are 18+ (or 16–17 in special cases, e.g., estranged from parents).
- Live in the UK and have under £16,000 in savings.
- Are on a low income, unemployed, or unable to work due to health issues.
Universal Credit replaces six older benefits, including Housing Benefit and Tax Credits. If you currently claim these, you’ll switch to Universal Credit eventually.
How to Apply For Universal Credit 2025?
- Online: Create an account on GOV.UK. You’ll need proof of ID, bank details, and income/savings info.
- Phone: Call 0800 328 5644 if you can’t apply online.
- Couples: Both partners must apply and link their accounts.
First Payment: Takes 5 weeks. You can request an advance loan if needed.
Final Advice for Claimants
- Review Your Budget: Use online calculators to estimate your new payment from April 2025.
- Claim All Entitlements: Check if you’re eligible for additional support like Council Tax Reduction or free school meals.
- Seek Help Early: Contact the DWP or charities if you’re struggling with payments or debt.
While the increases provide some relief, charities argue 1.7% rise for 2025 may not keep up with projected inflation, leaving vulnerable households struggling. The benefit cap (maximum annual amount a household can receive) has also risen slightly, but families in high-rent areas like London still face shortfalls. For those struggling, organisations like Citizens Advice and StepChange offer free debt and budgeting advice. Local councils may also provide hardship funds.