Millions of individuals who receive Universal Credit will experience a delay in receiving their increased payments, despite the rates being raised in April. The standard allowance for Universal Credit, which represents the amount before any deductions or additional elements are factored in, will see an inflation-adjusted increase starting April 13.
For a single claimant aged over 25, this adjustment will raise their monthly standard allowance from £400.14 to £424.90. However, due to Universal Credit being paid retrospectively, recipients will not see the raise in their payments until June.
The enhanced rates will solely impact Universal Credit assessment periods commencing on or after April 13. Since Universal Credit payments are disbursed a week after each assessment period ends, the new rates will not come into effect until June payments are made.
Your assessment period determines the amount of Universal Credit you receive, based on your earnings or deductions during that period. Nearly eight million people in the UK claim Universal Credit.
Eligibility for Universal Credit is contingent on various personal factors, such as age, living arrangements, relationship status, income, savings, and occasionally, physical and mental health.
If you are employed, there is a taper rate that reduces your maximum Universal Credit payment as your earnings increase. This taper rate stands at 55%, meaning 55p is subtracted from your maximum Universal Credit payment for every £1 you earn.
Certain individuals receive a “work allowance,” a predetermined amount that can be earned before Universal Credit starts to decrease. The “work allowance” amounts to £411 per month if housing costs assistance is also received, and £684 monthly if not.
The comprehensive list of additional elements and adjustments or deductions for Universal Credit payments can be accessed on GOV.UK.