Universal Credit Set to Rise for Millions in June: In June 2025, millions of Universal Credit claimants in the UK will see an increase in their monthly payments. This rise, set to reflect the latest inflation rate, will help to ease the financial pressure on individuals and families, especially given the ongoing challenges of living costs. If you’re one of the many affected by this change, it’s crucial to understand exactly how the new payments will work and when they’ll appear in your bank account. Let’s take a deep dive into this important update, exploring what you need to know to ensure you get the most out of your Universal Credit entitlement.
Universal Credit Set to Rise for Millions in June
| Key Information | Details |
|---|---|
| Payment Increase Percentage | 1.7% increase from April 2025 inflation rate |
| Effective Date | June 2025 (depending on your assessment period) |
| New Monthly Allowances | For example, Single under 25: £316.98, Single 25 or over: £400.14 |
| Additional Elements Increased | Limited Capability for Work and Work-Related Activity (LCWRA) rises from £416.19 to £423.27 per month |
| Official Source | gov.uk Universal Credit updates |
The upcoming Universal Credit increase in June 2025 is an important change for millions of people across the UK. While the 1.7% rise may not be enough to fully offset the effects of inflation, it’s still a valuable lifeline for many households. By understanding your assessment period and confirming the new rates, you can ensure that you receive the correct payments moving forward.
For the most accurate and up-to-date information, always refer to the official gov.uk Universal Credit page, or contact the Department for Work and Pensions directly if you have specific questions or concerns.
Understanding Universal Credit: A Quick Overview
Universal Credit (UC) is a financial support system in the UK designed to assist people who are on low income or out of work. It combines six benefits into one monthly payment: Income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA), Income Support, Housing Benefit, Child Tax Credit, and Working Tax Credit. Universal Credit was introduced to simplify the welfare system and make it more adaptable to modern working patterns, including part-time or variable work hours.
The amount you receive through Universal Credit depends on various factors, such as your income, household size, and whether you have additional needs, like a disability or dependents. Every year, the government reviews the payment rates to keep up with inflation, ensuring that the benefits keep pace with the rising cost of living. This year’s increase will be particularly important due to the current inflationary environment, which has made it harder for many people to make ends meet.
Why is Universal Credit Increasing in June?
The June 2025 increase is based on the 1.7% rise in inflation as measured by the Consumer Prices Index (CPI), which is the standard method the government uses to assess cost-of-living changes. This figure is particularly relevant as it reflects how much everyday goods and services have become more expensive. By aligning Universal Credit increases with inflation, the government ensures that recipients’ purchasing power remains as close as possible to its previous level, even though costs are rising.
While the increase is relatively modest, it’s still a significant boost for those struggling with rising food, energy, and housing costs. The increase also follows a national trend of rising benefits, with some other payments (such as state pensions) also seeing similar uprates.
How the Increase Benefits Families, Disabled Claimants, and Carers
For families, disabled claimants, and carers, the 1.7% rise is essential, as they often face higher living costs than those without dependents or additional needs. Families with children will see a direct benefit from this increase, especially those with the Child Element of Universal Credit, which will also rise accordingly.
Disabled claimants, particularly those with limited capability for work, will also benefit from an increase in their LCWRA (Limited Capability for Work and Work-Related Activity) element. This rise from £416.19 to £423.27 per month is an important lifeline for those who are unable to work due to health conditions or disabilities.
Similarly, carers who look after someone with significant care needs will see an increase in their payment as well, ensuring that those who take on extra responsibilities are supported adequately.
When Will the Payment Increase Take Effect?
The key date for when you’ll see your increased Universal Credit payments depends on your assessment period. The assessment period is the monthly cycle used by the Department for Work and Pensions (DWP) to calculate your Universal Credit entitlement. If your assessment period begins on or after April 7, 2025, the increased rates will likely appear in May. However, if your assessment period started before this date, you’ll see the change starting in June.
Example:
- If your assessment period starts on April 1, your payment on April 30 will be calculated at the old rate.
- If your assessment period starts on May 1, your payment on May 31 will reflect the new, increased rate.
- If your assessment period starts on June 1, your payment on June 30 will reflect the new, increased rate.
To confirm the exact date your new payment rate will take effect, you can always check the DWP’s payment schedule or contact the department directly.
How Much Will You Receive Under Universal Credit?
The 1.7% increase will apply to all standard Universal Credit payments. Below are the new rates that will apply for the 2025/26 tax year, starting in June.
New Universal Credit Monthly Rates:
| Household Type | Current Rate | New Rate (from June 2025) |
|---|---|---|
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Joint claimants both under 25 | £489.23 | £497.55 |
| Joint claimants both 25 or over | £617.60 | £628.10 |
These rates are the standard allowances, meaning they are the base amounts you will receive. If you are eligible for additional elements, such as the Limited Capability for Work (LCW), Limited Capability for Work and Work-Related Activity (LCWRA), or Carer’s Allowance, those amounts will also be adjusted.
Other Increases:
- The LCWRA amount will rise from £416.19 to £423.27 per month.
- The Carer’s Element (for those who provide unpaid care) will also rise in line with inflation.
These increases ensure that those with specific needs, such as those with disabilities or caregivers, also see a fair increase in their support.
How to Check If Your Payment Is Increasing
To check if your payment will increase in June, you need to:
- Review your assessment period: Find out when your last assessment period was, and when your next one will begin. The increase will reflect the 1.7% rise if it falls within the new tax year (April 2025 onwards).
- Check your payment schedule: Refer to your online Universal Credit account or official communications from the Department for Work and Pensions (DWP). This will show you the exact payment dates and rates.
- Contact DWP if unsure: If you’re unsure whether the increase will apply to your next payment, don’t hesitate to reach out to the DWP through your online account or by phone.
How to Maximize Your Universal Credit Payments
While the Universal Credit rise in June is a welcome increase, it’s important to maximize your payments. Here are some tips on how to ensure you are receiving all the support you are entitled to:
- Keep Your Circumstances Updated: Ensure that any changes in your household, income, or health are promptly reported to the DWP. For example, if you start a new job or your household size changes, notify them immediately to avoid underpayments or overpayments.
- Check for Additional Benefits: If you’re eligible for other government programs or tax credits, don’t overlook them. Use tools like the Turn2us Benefits Calculator to check if you qualify for additional support.
- Seek Financial Advice: If you’re struggling financially, consider seeking advice from organizations like Citizens Advice, who can help you navigate your options and ensure you are receiving the maximum support.
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FAQs
1. How does the Universal Credit increase affect families with children?
The increase will apply to all households receiving Universal Credit, including families with children. Families with children may also be entitled to additional amounts through the Child Element of Universal Credit. The standard allowance increase will be applied to your payments, but you may also see adjustments if you qualify for the child-related elements.
2. Is this increase enough to cover rising living costs?
While the 1.7% increase is in line with inflation, many experts argue that it may not fully cover the rising costs of essentials like food, energy, and housing. However, it is still a crucial boost for many families, especially those already struggling with the higher costs of living.
3. Will the increase apply to other benefits like Jobseeker’s Allowance (JSA)?
No, this increase is specifically for Universal Credit. Other benefits like Jobseeker’s Allowance (JSA) or Employment and Support Allowance (ESA) are not included in this increase, but they may be reviewed separately by the government.
4. How can I find out if I’m entitled to more than the standard amount?
You can use a benefits calculator to find out if you’re eligible for additional elements, such as the Limited Capability for Work and Work-Related Activity (LCWRA) element or the Carer’s Element. Websites like Turn2us and Policy in Practice offer easy-to-use calculators that will give you an estimate of what you may be entitled to.
