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Universal Credit Changes: £420 Annual Boost for Over a Million UK Families
Big news for benefit claimants in the UK—more than 1.2 million households will receive up to £420 more each year, thanks to changes made by the Department for Work and Pensions (DWP). This move is expected to bring relief to many low-income families and individuals.
What's Changing?
Lower Deductions from Benefits
From April 30, 2025, the DWP has lowered the cap on how much money can be taken from a person’s Universal Credit each month. Before, up to 25% of the standard allowance could be deducted to repay debts like rent arrears or benefit overpayments. Now, that limit is down to 15%.
This is called the "Fair Repayment Rate." It’s designed to ease pressure on struggling households. With less money taken out, many people will have more left in their pockets—adding up to £420 extra per year for some.
Benefit Payments Increased
On top of that, Universal Credit payment rates have gone up by 1.7% to match inflation. This means:
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A single adult over 25 now gets £400.14 per month, up from £393.52.
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A couple over 25 now receives £628.10 monthly, up from £617.32.
Who Will Benefit?
Around 1.2 million households will see this change, including 700,000 families with children.
Depending on the family setup:
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Single parents could get up to £39 more each month
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Two-parent households might see a rise of up to £62 monthly
Extra Support for Carers
Carers are also getting more help:
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Universal Credit Carer Element: Now £198.31 a month
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Pension Credit Carer Addition: Increased to £45.60 per week
These changes reflect the government’s aim to support those who care for others and often face extra costs.
How to Check If You’re Eligible
To see how these updates affect you, try using one of the trusted benefit calculators:
These free tools help you check what support you qualify for and make sure you’re getting the full amount.
