Universal Credit (UC) remains a significant aspect of the social welfare system in the United Kingdom, designed to help individuals and families with living costs if they are on a low income, out of work, or unable to work. As of April 2025, it’s crucial to stay informed about the latest news, ongoing changes, and address the common questions people are asking. This article aims to provide a comprehensive overview based on the most recent information available.
Latest News and Updates (Early April 2025)
Recent news indicates several important developments concerning Universal Credit in the UK:
Early Benefit Payments Due to Bank Holidays
In April 2025, recipients of Universal Credit and other benefits experienced changes in their payment dates due to the Good Friday and Easter Monday bank holidays. Payments expected on Friday, April 18th, or Monday, April 21st, were credited on Thursday, April 17th. This adjustment affected not only Universal Credit but also eleven other benefits, including Attendance Allowance, Carer’s Allowance, Child Benefit, Disability Living Allowance, Employment and Support Allowance, Income Support, Jobseeker’s Allowance, Pension Credit, Personal Independence Payment, State Pension, and Tax Credits (like Working Tax Credit). Claimants are advised to manage their finances accordingly, as the next payment will follow the usual monthly cycle.
Increase in Universal Credit Allowances
April 2025 also brought an increase in the standard allowances for Universal Credit recipients, in line with inflation. The standard allowance for single individuals aged 25 and over rose from £393.45 to £400.14 per month. For joint claimants where one or both partners are aged 25 or older, the allowance increased from £617.60 to £628.09 per month. These increases aim to provide additional financial support to claimants amidst the rising cost of living.
Millions on Universal Credit Not Receiving Work Search Support
A significant report from March 2025 highlighted that nearly two million people on Universal Credit are categorized as having ‘Limited Capability for Work Related Activity’ (LCWRA) and are not receiving support to look for work. This figure has increased by 50% since the start of the pandemic, exceeding initial projections. The government acknowledges that the current Work Capability Assessment (WCA) system, which places individuals in binary categories of ‘fit for work’ or ‘not fit for work,’ is flawed and intends to reform or replace it. The existing system is criticized for potentially disincentivizing work by offering higher payments to those deemed unable to work.
Upcoming Changes to Universal Credit (Beyond April 2025)
Looking ahead, several significant changes to Universal Credit have been announced and are expected to be implemented in the coming years:
Scrapping the Work Capability Assessment (WCA)
The government has announced plans to scrap the “complex” and “time-consuming” Work Capability Assessment (WCA) by 2028. This assessment currently determines eligibility for the health element of Universal Credit. In the future, additional financial support for health conditions will be based solely on the Personal Independence Payment (PIP) assessment, focusing on the impact of a person’s health condition or disability on their daily living, rather than their capacity to work.
Changes to the Universal Credit Standard Allowance and Health Element
From April 2026, the standard allowance of Universal Credit for both new and existing claimants will see an “above-inflation rise.” For a single person aged 25 or over, this is projected to increase from £91 per week in 2024/2025 to £98 per week in 2026/2027, and further to £106 per week by 2029/2030.
However, the health element of Universal Credit (currently £97 per week for those with LCWRA) will undergo significant changes:
For new claimants from April 2026, the health element will be reduced to £50 per week and frozen at this level until 2029/2030.
For existing claimants who were found to have LCWRA before April 2026 and remain in that group after reassessment, the health element will be frozen at the current rate of £97 per week until 2029/2030.
Individuals with the most severe, lifelong health conditions with no prospect of improvement will receive an additional premium to protect their income.
“Right to Try Work” Legislation
The government intends to introduce legislation to establish a “right to try work” principle. This aims to reassure claimants of Universal Credit, Personal Independence Payments (in England and Wales), and New Style Employment and Support Allowance that attempting work will not automatically trigger a reassessment of their benefits.
New “Unemployment Insurance” Benefit
A new non-means-tested “Unemployment Insurance” benefit is planned, which will combine contribution-based Jobseeker’s Allowance (JSA) and Employment and Support Allowance (ESA) into a single, time-limited benefit paid at the current ESA rate.
Prompting Claimants to Report Changes in Circumstances
Starting in April 2025, the Department for Work and Pensions (DWP) will begin prompting Universal Credit claimants to confirm whether they have experienced any changes in circumstances that might affect their entitlement. While the existing rules requiring immediate reporting of changes (such as finding a job, changes in income, or moving house) remain in place, this new initiative aims to ensure more timely and accurate reporting. The frequency of these prompts will be subject to a trial period.
FAQs
What are the major Universal Credit changes in 2025?
Key updates include:
Debt Deductions: From April 2025, the maximum deduction from UC payments for debts will reduce from 25% to 15%, benefiting over 1.2 million households .
Benefit Cuts: Starting in 2026, incapacity payments for new UC claims will halve from £416.19 to £208.10 per month. Health top-ups for claimants under 22 will be eliminated .
Assessment Changes: The Work Capability Assessment will be phased out by 2028, with Personal Independence Payment (PIP) assessments determining eligibility for health supplements .
How does the migration from legacy benefits to Universal Credit work?
The Department for Work and Pensions (DWP) is transitioning claimants from legacy benefits to UC through ‘Migration Notices.’ Recipients must act by the deadline specified in the notice to continue receiving support. The migration process is expected to complete by March 2026 .
What is the ‘five-week wait’ and why is it controversial?
New UC claimants typically wait five weeks for their first payment. While advance loans are available, they must be repaid, reducing future payments. Critics argue this delay exacerbates financial hardship, leading to increased debt and reliance on food banks .
What support is available for those struggling on Universal Credit?
If facing financial hardship:
Hardship Payments: Available for those sanctioned or in severe need .
Citizens Advice: Offers guidance on benefits and financial issues.
Local Councils: May provide additional support or discretionary payments.
How are Universal Credit payments affected by bank holidays?
If a UC payment date falls on a bank holiday, the payment is typically made on the preceding working day. Claimants should plan accordingly to manage their finances during these periods .
How does Universal Credit impact people with disabilities?
Recent reforms aim to tighten eligibility for disability-related benefits:
PIP Eligibility: Will determine access to health supplements as the Work Capability Assessment is phased out.
Benefit Reductions: Changes may reduce support for some disabled individuals, potentially impacting access to housing and social care services .
What is the public perception of Universal Credit recipients?
Public opinion is mixed. Some individuals, like Millie, a 21-year-old mother of three, share their experiences of relying on UC for essential expenses, despite facing online criticism. She emphasizes that her benefits are used to support her children’s needs, highlighting the challenges faced by low-income families .
To conclude
Universal Credit remains a pivotal component of the UK’s welfare system, aiming to provide financial support to those in need. However, recent reforms and ongoing challenges highlight the complexities and controversies surrounding its implementation. As the system evolves, staying informed and seeking available support is crucial for current and prospective claimants.
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