Mardul Sharma
Author
- Published: May 01 2025 01:19 PM
- Last Updated: May 22 2025 06:44 PM
Over 1.2 million UK households will receive an average £420 annual Universal Credit increase due to a reduced debt repayment rate cap. This change, effective from April 30th, 2025, aims to ease cost-of-living pressures.
FAQ
The £420 annual increase to Universal Credit will be implemented from April 30th, 2025. This means payments reflecting the change will be received from May onwards.
The average increase is £420 per year, though the exact amount will vary depending on individual circumstances and existing debt levels. The change is due to a reduction in the debt repayment rate cap.
Over 1.2 million UK households currently receiving Universal Credit will benefit from this increase. Eligibility is based on existing Universal Credit entitlement and affected by the change in the debt repayment rate.
The government aims to ease the cost-of-living pressures faced by many families. By reducing the amount deducted from Universal Credit payments for debt repayment, it frees up additional money for essential living expenses.
The change involves lowering the maximum percentage of Universal Credit payments that can be deducted to repay existing debts. This lower cap leaves more money in the recipients' accounts each month.
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