The Department for Work and Pensions (DWP) has announced a landmark change to Universal Credit, marking the first time the standard allowance will permanently rise above inflation. This move is set to benefit nearly 4 million households across the United Kingdom, providing an estimated annual income boost of £725 in cash terms by the 2029/30 financial year for a single person aged 25 or over.
Historic Increase in Support
According to the Institute for Fiscal Studies, this represents the highest permanent real-terms increase to the main rate of out-of-work support since 1980. Former Work and Pensions Secretary Liz Kendall emphasized the government's commitment to fairness, stating: 'Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence. We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out.'
How Universal Credit Works
Universal Credit is a monthly payment designed to help with living costs. It is paid monthly, or twice a month for some claimants in Scotland. Eligibility extends to those on a low income, out of work, or unable to work. The DWP advises that claims can be made online by creating an account, with the claim needing to be completed within 28 days of account creation. For couples, both partners must create accounts and link them together when claiming. Those unable to claim online can do so by phone via the Universal Credit helpline.
This change is expected to provide significant financial relief to millions, supporting households in managing their living expenses more effectively.
