MILLIONS of people on Universal Credit are set to get more cash in their monthly payments from April onwards.
Benefit rates are increasing and claimants will have more money coming in – but bills are rising at a faster rate which could leave many feeling worse off.
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Universal Credit is one of several benefits which are increading 3.1% next month.
Anyone getting child benefit, state pension, housing benefit and personal independence payment will also get higher payments.
Universal Credit claimants getting the standard allowance will get £10 more a month – or more than £15 extra if you’re part of a couple.
The pay rise for millions of struggling households will come in from April 11.
But the exact date you start getting the higher rates will depend on when you get your monthly payments.
Benefits generally increase each year and is known as the annual uprating.
This is so that payments can keep with the cost of things like food, clothes and fuel which rise over time, called inflation.
But inflation has hit a 30-year high of 5.5% since the 3.1% rise was announced last year, and could rocket further to as much as 8%.
It means that in real terms people are likely to feel worse off as more of their cash is going on essentials like bills and food.
The value of Universal Credit for 3.6 million families with children who claim it will fall by around £570 a year, on average, according to research from the Child Poverty Action Group (CPAG).
Experts have called on the government to look again at how much benefits will increase, as the cost of living crisis is expected to bite further in April.
Chancellor Rishi Sunak made no changes to Universal Credit or other benefit rates in his Spring Statement last week.
He also stuck with plans to increase National Insurance rates for those in work by 1.25 percentage points in April.
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But he offered a tax cut to some by increasing the threshold at which you start paying National Insurance, from £9,568 to £12,570 from July.
Those in work claiming Universal Credit could be better off as they will pay less NIC.
But it your take home pay increases then you may lose more from your Universal Credit because of the taper rate.
Also rising in April are a host of bills including energy, broadband and phone, council tax.
Those in work and claiming Universal Credit may get more pay as the Living Wage is rising.
You can use a benefits calculator to check if you’re claiming everything you’re entitled to which could boost your purse.
You can check by using an online benefits calculator, which are offered by charities such as Turn2Us and EntitledTo.
There’s also help you can get if you’re struggling with energy bills.
How much are Universal Credit payments and what are they rising to in 2022?
Here’s how much more you will get from April 11 each month in your Universal Credit payment.
Exactly how much more you get in total will depend on whether you get the basic amount, or claim more for having kids or housing cost help too, among other things.
You might also get more if you’re entitled to other benefits, for instance carer’s allowance if you’re taking care of someone else.
You might also get less if you’re subject to the benefit cap, which limits the total amount you can get for some people.
Standard allowance (per month)
- For those single and aged under 25, the standard allowance will rise from £257.33 to £265.31
- For those single and aged 25 or over, the standard allowance will rise from £324.84 to £334.91
- For joint claimants both under 25, the standard allowance will rise from £403.93 to £416.45
- For joint claimants where one or both are 25 or over, the standard allowance will rise from £509.91 to £525.72
Extra amounts for children
- For those with a first child born before April 6, 2017, the extra amount is going up from £282.50 to £290
- For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £237.08 to £244.58
- For those with a disabled child, the lower rate addition payment is going up from £128.89 to £132.89 and the higher rate from £402.41 to £414.88
Extra amounts for limited capability for work
- For those deemed to have limited capability for work, the extra amount is going up from £128.89 to £132.89
- For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £343.63to £354.28
Extra amounts for being a carer
Universal Credit claimants can get an additional amount if you’re caring for a severely disabled person for at least 35 hours a week.
The amount you get a month will rise from £163.73 to £168.81
The work allowance rates have already risen from November 24 last year and will rise again from April 2022 onwards.
Increased work allowance
- The higher work allowance (no housing amount) for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £557 to £573
- The lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £335 to £344
When will I get new Universal Credit rates in 2022?
The new rates will kick in from April11, 2022, but exactly when will depend on when you get your Universal Credit payment each month.
You can check your Universal Credit account for your first payment in April and you should see the new amounts.
If you have a change of circumstances around the same time that affects how much you’re entitled to then your payments may be different because of this.
If you’re not sure about anything you can speak to your work coach.
Your payment date for Universal Credit and other benefits could also change next month because of the Easter Bank Holiday – here’s what you need to know.
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