Universal Credit claimants aged 25 and over will see their standard allowance increase to £98.05 per week under Andy Burnham's new government. The uprating, inherited from the previous administration led by Sir Keir Starmer, represents a key component of the Labour Prime Minister's economic agenda.
Payment Details and Eligibility
The £98.05 weekly rate applies to single individuals aged 25 or older. Claimants may receive additional amounts on top of this standard allowance if they meet specific eligibility criteria. However, the Department for Work and Pensions (DWP) has confirmed that these extra payments are not added automatically. Claimants must report changes in their circumstances when they become eligible for additional support.
The increased payments will be administered by Mr Burnham and Chancellor John Healey, providing what many hope will be welcome relief amid the ongoing cost of living crisis that has squeezed household budgets across the country.
Economic Experts React
Chris Belfield, chief economist at the Joseph Rowntree Foundation, commented: "We face a tough living standards outlook, with the lowest-income households facing the biggest squeeze. Any action to help with that is to be welcomed. But there is still so much to do. The new government has an opportunity to meet this crisis head-on, with bold policy that fundamentally rethinks how we build household economic security."
Danny Sriskandarajah, chief executive at the New Economics Foundation, added: "At the New Economics Foundation, we have been waiting 40 years for a PM who promises to 'build a new economy'. What we need to see now are the measures that will deliver the promises he just made on Downing Street. The new government's top priority needs to be early action to address cost of living pressures through policies like a national energy guarantee, rent controls and free bus fares for under-25s."
Burnham's Broader Economic Vision
Mr Burnham has pledged to "build a new economy where we put life's essentials back under stronger public control to make them affordable to you again." This includes plans to "re-industrialise Britain, using public procurement to back British industry," the Makerfield MP stated.
These commitments signal a shift toward greater state intervention in the economy, with a focus on bringing essential services under public ownership and supporting domestic manufacturing. The Universal Credit increase is seen as an initial step in this broader strategy to address economic insecurity.
Impact on Claimants
For the millions of Universal Credit claimants across the UK, the increase to £98.05 per week represents a modest but significant boost. However, experts caution that more comprehensive reforms are needed to tackle the root causes of poverty and economic vulnerability. The new government faces pressure to deliver on its promises quickly, with many households struggling to meet rising costs for energy, housing, and food.
