The Department for Work and Pensions (DWP) has announced some major changes for Universal Credit claimants that are expected to begin next year. The new rules will offer extra financial support for thousands of people, helping them deal with rising living costs. One of the most talked-about parts of this plan is an increase of up to £725 annually for many claimants.
What Is Universal Credit and Why Changes Are Coming
Universal Credit is a single monthly payment that helps people who are on low income or out of work. It combines six different benefits into one, making it easier to manage money and get support. With the cost of food, energy and bills going up, the government wants to provide more help to those who need it the most.
From next year, the DWP will introduce changes to make Universal Credit more useful and better targeted. These include adjustments in payments, eligibility rules and support services.
Who Will Get the Extra £725 Boost
The biggest update is the increase in the work allowance. This is the amount you can earn before your Universal Credit payment starts to go down. From next year, the work allowance will go up, which means working people on Universal Credit can keep more of their earnings.
The Government has estimated that this change alone will give millions of people an extra £725 per year. That’s around £60 more per month to help with bills and everyday needs.
This change will mostly benefit:
– Families with children who are working and claiming Universal Credit
– People with a health condition or disability that affects their work
If you are in one of these groups, starting next year you could receive a higher payment without having to do anything extra.
New Rules to Encourage More People to Work
Along with increasing support, DWP is also planning to make changes that push more people into work. This includes adjusting the Administrative Earnings Threshold (AET), which is the minimum amount people are expected to earn.
From next year, more people may be expected to work or increase their working hours in order to continue receiving their full Universal Credit payments. This change focuses on those who may be working part-time, encouraging them to take more hours or find better paying jobs where possible.
Extra Help for Childcare Costs
Another important change in the new Universal Credit rules includes more support with childcare. Working parents on Universal Credit will now be able to claim back a larger amount of their childcare costs.
– The maximum amount parents can claim for one child will go up from £646 to £951 per month
– For two or more children, the amount increases from £1,108 to £1,630 per month
This is a big help for parents who work or want to go back to work but were struggling with the high costs of childcare.
More Practical Support Through Job Centres
Aside from payment changes, the DWP is also set to offer more face-to-face support. Universal Credit claimants will receive increased help from job coaches and will have more regular contact with job centres.
The goal is to help people find better jobs, learn new skills, and stay in employment for longer. So, if you’re claiming Universal Credit, expect more help not just with money, but also career advice and training opportunities.
When Will These Changes Start
The DWP has said these changes will begin in the next financial year, starting from April. Some updates, like the increase in work allowances and childcare support, are expected to be rolled out immediately in April 2025, while others may come in stages.
How to Prepare for These Changes
To get ready for the upcoming Universal Credit changes, here’s what you can do:
– Keep an eye on your Universal Credit journal for important updates
– Make sure your online account information is up to date, especially your earnings and childcare costs
– Speak to your work coach if you are unsure how changes will affect you
If you’re working part-time or thinking about taking up a job, now is a good time to check if you can take on more hours. With the new work allowance and childcare changes, working more might actually leave you with more money in your pocket.
Will These Changes Help During the Cost of Living Crisis
Yes, that’s the plan. With prices for food, travel, and utility bills going up, many people are struggling to make ends meet. The updates to Universal Credit are focused on giving financial relief where it’s needed the most.
An extra £725 a year may not seem like a lot to some, but for a family on a tight budget, this could help buy food, pay for school items, or cover part of the rent.
Conclusion
The Universal Credit changes coming next year are part of bigger reforms aimed at making the system fairer and more supportive. Whether it’s more money through increased work allowances or bigger childcare payments, these updates could make a real difference in your life.
If you claim Universal Credit or know someone who does, it’s important to stay informed and be ready for the changes. This way, you can make the most of the new rules and get extra help during tough times.
Stay connected to DWP updates, and don’t hesitate to talk to your job centre if you have any questions.
