Upcoming changes to Universal Credit in the following year may have a significant impact on millions of recipients.
With over eight million beneficiaries in the UK, Universal Credit is administered by the Department for Work and Pensions (DWP).
One of the adjustments includes an increase in the standard allowance, which represents the fundamental payment in Universal Credit before any supplementary payments or deductions are applied.
However, there are notable reductions on the way for the health-related component for new Universal Credit applicants.
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The transition to Universal Credit is replacing the majority of older legacy benefits, with all individuals expected to be transferred by the conclusion of March 2026.
Universal Credit is set to replace Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Those required to transition to Universal Credit will receive a “migration notice” by mail, providing a three-month window to commence their Universal Credit application.
Exceptions will apply in certain circumstances, such as the ability to continue claiming Housing Benefit for individuals in supported or temporary housing situations.
Effective from April next year, the Universal Credit standard allowance is anticipated to rise by 6.2%, surpassing the inflation rate. For individuals aged 25 and above, the standard allowance will elevate from £92 to £98