DWP Warning: Universal Credit Claimants May Face Two-Month Payment Delay

• Universal Credit payments rising by 1.7%, but not until May or June for many
• New rates only apply to assessment periods starting from April 7
• Debt deductions from payments will also be reduced from 25% to 15% in April

Millions of Universal Credit claimants expecting a payment boost in April may be in for a disappointment. While the 1.7% increase kicks in from April 7, most recipients won't see the extra cash until May or even June, due to how Universal Credit assessment periods work.

Universal Credit is calculated monthly, based on earnings and circumstances. The new rates only apply to assessment periods starting on or after April 7, meaning many people won’t receive the higher payments until later in the spring.

How Much Will Universal Credit Rise By?

• Single under 25: £311.68 → £316.98
• Single 25+: £393.45 → £400.14
• Couples under 25: £489.23 → £497.55
• Couples 25+: £617.60 → £628.10

Meanwhile, debt deductions from Universal Credit are also being reduced. Currently, up to 25% of the standard allowance can be taken to repay debts like rent arrears, energy bills, or overpayments. From April 2025, this will be reduced to 15%, offering some relief to those struggling with deductions.

Universal Credit is gradually replacing six older benefits, including Tax Credits and Housing Benefit, with all claimants expected to be moved over by March 2025.

Tom Church, Co-Founder of LatestDeals.co.uk, said: “Many people will be relying on this increase, so the delay is frustrating. It’s good to see debt deductions being reduced though, as it gives claimants a little more breathing room.”