How much will Universal Credit rise by next year? DWP benefit rates explained

Universal Credit payments will rise by 1.7% next April in a major boost to more than six million claimants.

Benefit payments normally rise every April in line with the previous September rate of inflation, . Universal Credit is made up of a standard allowance, which is the basic amount you get before any additional elements - for example, if you have children or are unable to work due to illness - or any deductions are taken into account.

You may be subject to deductions if you have savings or if you owe the (DWP) money. If you work, there is a taper rate which reduces your maximum Universal Credit payment as your earnings increase. The taper rate is 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.

Some people get a "work allowance" which is a set amount you can earn before your Universal Credit is reduced. There is also a childcare costs element, which allows working parents to reimburse up to 85% of eligible childcare costs for a child or young person, up to the maximum amounts which we've listed below. Here is how much Universal Credit is set to rise by next April.

is replacing six older legacy benefits, including Working Tax Credit, Child Tax Credit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance and Housing Benefit, unless you’re in supported or temporary housing.

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Universal Credit

Standard allowance

• Single under 25: £311.68 a month to £316.98 a month

• Single 25 or over: £393.45 a month to £400.14 a month

• Joint claimants both under 25: £489.23 a month to £497.55 a month

• Joint claimants, one or both 25 or over: £617.60 a month to £628.10 a month

Child element

• First child born before April 6, 2017: £333.33 a month to £339 a month
• First child born on or after April 6, 2017 or second child and subsequent child: £287.92 a month to £292.81 a month
• Disabled child element lower rate: £156.11 a month to £158.76 a month
• Disabled child higher rate: £487.58 a month to £495.87 a month

Limited capability for work

• Limited capability for work: £156.11 a month to £158.76 a month
• Limited capability for work or work-related activity: £416.19 a month to £423.27 a month

Carer element

• £198.31 a month to £201.68 a month

Work allowance

• Higher work allowance (no housing amount): £673 a month to £684 a month
• Lower work allowance (with housing amount): £404 a month to £411 a month

Childcare costs element

• Maximum for one child: £1,014.63 a month to £1,031.88 a month
• Maximum for two or more children: £1,739.37 a month to £1,768.94 a month

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