The DWP Universal Credit change coming in April 2025 is set to bring much-needed financial relief to families across the UK. With the rising cost of living, these adjustments aim to increase support for parents, particularly those struggling with childcare expenses and raising children with disabilities.
This guide covers the key changes, their impact on families, and what parents need to do to ensure they receive the right financial support.
Key Changes in Universal Credit from April 2025
Starting in April 2025, parents on Universal Credit will benefit from higher payments in several areas. The main changes include:
- Increased monthly payments for children to help families cope with rising costs.
- Higher financial support for children with disabilities, ensuring extra assistance for families caring for children with special needs.
- Expanded childcare cost coverage, making it easier for parents to work while affording childcare.
- Potential extra payments for eligible families, offering additional financial security.
These updates reflect the government’s commitment to reducing financial strain on families and ensuring adequate support for parents raising children.
Overview of Universal Credit Payment Changes (April 2025)
| Category | Previous Amount (£) | New Amount (£) from April 2025 | Change (£) |
|---|---|---|---|
| First or Only Child (Born before April 6, 2017) | 333.33 | 339.00 | +5.67 |
| Additional Children (Born after April 6, 2017) | 287.92 | 292.81 | +4.89 |
| Lower Disability Rate | 156.11 | 158.76 | +2.65 |
| Higher Disability Rate | 487.58 | 495.87 | +8.29 |
| Maximum Childcare Payment (One Child) | 1,014.63 | 1,031.88 | +17.25 |
| Maximum Childcare Payment (Two or More Children) | 1,739.37 | 1,768.94 | +29.57 |
| Childcare Cost Coverage | 85% | 85% | No Change |
| Potential Extra Financial Support | N/A | £750 (for eligible families) | New |
Increase in Child-Related Universal Credit Payments
One of the most significant changes is the increase in payments for children. Parents with children born before April 6, 2017, as well as those with additional children born after, will receive higher monthly payments.
This increase is designed to match inflation, ensuring families can afford essentials like food, clothing, and school supplies.
With living costs continuously rising, this adjustment will help families relying on Universal Credit to better manage their expenses.
Greater Financial Support for Disabled Children
Families with disabled children often face higher costs due to medical care, therapy, and specialized equipment. To address this, Universal Credit payments for disabled children will be increased.
New Disability Payment Rates
- Lower Disability Rate: £158.76 per month (+£2.65 increase).
- Higher Disability Rate: £495.87 per month (+£8.29 increase).
This means families receiving Disability Living Allowance (DLA) or Personal Independence Payment (PIP) for their children will get extra financial help through Universal Credit.
By raising these payments, the government aims to support families who face additional financial burdens due to disability-related expenses.
Increased Childcare Cost Support for Working Parents
Childcare costs can be a major challenge for working parents, often preventing them from staying employed. To address this, Universal Credit will continue to cover up to 85% of childcare costs, but the maximum claimable amount is increasing.
New Childcare Support Limits
- One Child: Up to £1,031.88 per month (+£17.25 increase).
- Two or More Children: Up to £1,768.94 per month (+£29.57 increase).
These higher limits will help parents reduce out-of-pocket expenses and make it easier to afford childcare while working.
Additional Financial Assistance for Some Families
Alongside the increased standard payments, some families will qualify for an extra £750 payment.
Who Qualifies for the Extra £750?
- Eligibility criteria have not yet been fully disclosed, but it is expected to target low-income families with young children.
- Parents should check their Universal Credit account or visit a Jobcentre to see if they qualify.
This extra financial support is aimed at helping families facing financial difficulties, providing an additional safety net.
How These Changes Benefit Families
The DWP Universal Credit change will have a positive impact on families by:
Increasing child-related payments to help cover everyday expenses.
Providing extra disability support, making it easier to manage healthcare and special needs costs.
Enhancing childcare assistance, allowing parents to stay employed without financial strain.
Offering additional financial aid to some families for extra security.
These adjustments aim to reduce financial stress for parents and help them better provide for their children’s needs.
What Parents Should Do to Prepare
To ensure they receive the correct Universal Credit payments, parents should:
1. Check Your Universal Credit Account
- Log in to Universal Credit Online to review new payment amounts and eligibility updates.
2. Stay Updated on DWP Announcements
- Follow official updates from the Department for Work and Pensions (DWP).
3. Consult a Jobcentre If Needed
- If unsure about eligibility or payment changes, visit a local Jobcentre for guidance.
4. Plan Your Budget Accordingly
- Adjust household finances based on increased benefit amounts.
By staying informed and proactive, families can maximize the benefits of these Universal Credit changes.
The DWP Universal Credit change in April 2025 is a significant step towards supporting families, improving financial stability, and ensuring children receive the necessary care and resources.
With higher payments, increased childcare support, and extra financial assistance, these updates will help parents navigate the challenges of rising living costs.
