The Department for Work and Pensions (DWP) has announced a 1.7% increase in Universal Credit (UC) and Jobseeker’s Allowance (JSA) starting from 7 April 2025. However, due to payments being assessed in arrears, some claimants may not see the new rates until May 2025.
While any increase is welcome, concerns remain about whether this rise is enough to help struggling households. Many families rely on Universal Credit to cover rent, bills, and food, and with inflation still impacting daily expenses, some worry that the increase won’t go far enough.
New Payment Rates
The updated payment rates for Universal Credit and JSA for 2025/26 are as follows:
Universal Credit (Monthly Rates)
| Claimant Category | 2024/25 Rate | 2025/26 Rate |
|---|---|---|
| Single, under 25 | £311.63 | £316.98 |
| Single, 25 or over | £393.45 | £400.14 |
| Couple, both under 25 | £489.23 | £497.55 |
| Couple, at least one 25 or over | £617.60 | £628.10 |
Jobseeker’s Allowance (Weekly Rates)
| Claimant Category | 2024/25 Rate | 2025/26 Rate |
|---|---|---|
| Under 25 | £71.70 | £72.90 |
| 25 or over | £90.50 | £92.05 |
Although the increases will offer slight relief, many claimants feel the adjustments do not reflect the true cost of living, particularly with rising housing and energy costs.
How Will Changes Affect Claimants?
The government has also introduced new eligibility rules and work requirements for Universal Credit recipients. These changes are intended to encourage more claimants to find employment, but critics argue that many UC recipients are already in work but simply do not earn enough.
The stricter conditions could result in some claimants receiving lower payments or losing eligibility entirely. This means that despite the rate increase, some households may actually see less financial support in 2025.
When Will the New Rates Be Paid?
The increased rates take effect on 7 April 2025. However, since Universal Credit is paid monthly in arrears, most claimants will not see the higher payments until May 2025.
For example, if your UC payment is due in late April, it will still be based on the old rates. The first full payments reflecting the new rates should arrive in early to mid-May.
Can You Receive a UK Pension Abroad?
Yes, you can still receive your State Pension if you move abroad. However, the rules on pension increases depend on where you live:
- If you reside in the EU, EEA, or a country with a social security agreement with the UK, your pension will continue to rise annually.
- If you move to a country without an agreement, your pension will be frozen at the rate you received when you left the UK.
To avoid any payment disruptions, you must notify the International Pension Centre of any changes to your address or bank details.
The 2025 Universal Credit and JSA increase will provide some relief, but many argue it is not enough to keep up with the rising cost of living.
Additionally, the government’s push to tighten work-related conditions may leave some claimants worse off. It is important for recipients to stay informed about their entitlements and any changes to eligibility criteria.
