Universal Credit payments will increase from this Monday, meaning benefit claimants will get more money in their bank account during the cost of living crisis.
But the 3.1% increase is still far behind the inflation rate, which has just jumped to 6.2%.
Families are also struggling with rising bills.
Energy regulator Ofgem has increased its price cap – which limits how much you can be charged for each unit of electricity and gas you use – by a staggering £693 for someone with one use typical.
Municipal tax bills have also just gone up, rising 3.5% on average for someone in a Band D property.
You may also have noticed an increase in your broadband, mobile and mortgage payments.
How much does Universal Credit increase?
Universal Credit is made up of a standard allowance and any additional amounts that apply to you.
For example, if you have children, a disability or a health problem.
Your Universal Credit is then subject to deductions based on your savings and, if you are working, your income.
Is increasing Universal Credit enough to help during the cost of living crisis? Let us know your thoughts: [email protected]
Department for Work and Pensions (DWP) bosses will review your situation each month – known as the assessment period – to see how much you are entitled to.
This means that your Universal Credit allowance may fluctuate from month to month, if your income changes regularly.
Here’s how Universal Credit is doing from April 11, with monthly rates listed below.
The standard allowance is the base Universal Credit amount you could get before any enhanced amounts or deductions are taken into account.
It depends on your personal situation, including your age and whether you are in a relationship.
Joint applicants under 25: £416.45 (was £403.93)
Joint applicants, one or both aged 25 or over: £525.72 (from £509.91)
Here are some of the additional items you may be entitled to, which are also on the rise:
If you have children
First child (born before April 6, 2017): £290.00 (from £282.60)
First child (born on or after 6 April 2017) or second and subsequent child (where an exception or transitional provision applies): £244.58 (was £237.08)
If you have a disability or health problem
Limited capacity for work or work-related activity: £354.28 (from £343.63)
Limited ability to work and you started your claim for Universal Credit or health-related Employment and Support Allowance (ESA) before 3 April 2017: £132.89 (was £128.89)
If you are caring for a severely disabled person
Some people may earn a certain amount of money before their income begins to affect their Universal Credit. This is called work allowance.
Working Allowance (no Housing Amount) for someone claiming Universal Credit with one or more dependent children or limited work capacity: £573 (from £557)
Lower Working Allowance for someone claiming Universal Credit with one or more dependent children or limited ability to work: £344 (from £335)