The Universal Credit increase 2024 came into effect on 8 April 2024, marking a 6.7% rise in monthly payments for millions of claimants across the UK.

This adjustment, linked to the Consumer Price Index (CPI) inflation rate from September 2023, was designed to help low-income households and the self-employed manage rising living costs through adjusted standard allowances and additional elements.

Universal Credit is a monthly social security payment in the United Kingdom for people on low incomes or out of work.

The Department for Work and Pensions (DWP) implemented this 6.7% uplift across the standard allowance and various supplemental elements to ensure the benefit system kept pace with the statutory requirements for the 2024/25 tax year.

How much is the universal credit increase 2024 for each household?

The 6.7% uprating means that a single claimant aged 25 or over saw their monthly standard allowance rise from £368.74 to £393.45. For joint claimants where at least one partner is aged 25 or over, the monthly payment increased from £578.82 to £617.60.

These figures represent the base amount before any additional elements for children, housing, or disability are added.

The Benefit Cap Trap: Why some families see £0.00 increase

While the 6.7% rise looks good on paper, it has triggered a “hidden” freeze for thousands of households due to the Benefit Cap, which was not increased in 2024. For a couple with children in London, the monthly cap remains frozen at £2,110.25.

If a London family was already receiving £2,100 in total benefits, the 6.7% increase should have added roughly £140 to their monthly payment.

However, because they hit the £2,110.25 ceiling after just £10 of that increase, the DWP simply “caps” the rest. In this scenario, the family loses £130 per month of their intended inflation uplift.

This predominantly affects larger families in high-rent areas, effectively swallowing their cost-of-living support to pay for the “cap” gap.

Understanding the 2024 Uprating Calculation

The core reason for this specific figure lies in the Social Security Administration Act 1992, which requires the government to review benefit levels annually.

By using the CPI figure from the previous September, the DWP ensures that the universal credit increase 2024 maintains the purchasing power of recipients against the cost of essential goods.

In practice, this means that while the “cash” amount in your bank account is higher, the “real-terms” value is intended to stay level with inflation.

A common pattern observed during this transition was the slight delay in seeing the extra funds, as Universal Credit is paid in arrears.

Comparison of Standard Allowance Rates 2023 vs 2024

Claimant Status	Monthly Rate (2023/24)	New Monthly Rate (2024/25)	Monthly Increase
Single (Under 25)	£292.11	£311.68	£19.57
Single (25 or Over)	£368.74	£393.45	£24.71
Joint (Both Under 25)	£458.51	£489.23	£30.72
Joint (One or Both 25+)	£578.82	£617.60	£38.78

What is Universal Credit and who provides the funding?

Universal Credit is the UK’s primary “all-in-one” benefit system, designed to simplify the welfare state by merging six older “legacy” benefits into a single monthly payment.

It is administered and paid by the Department for Work and Pensions (DWP), funded through general taxation. The government pays this credit to ensure a minimum standard of living, acting as a financial safety net for those whose income falls below a certain threshold.

The primary purpose of the payment is to support those who are unemployed, unable to work due to health issues, or working in low-paid roles.

By providing a single payment that “tapers” off as you earn more, the system is designed to ensure that you are always financially better off in work than on benefits.

A frequent question for those entering the workforce is, if i work 16 hours a week how much universal credit will i get, as the final award is heavily influenced by the work allowance and current taper rates.

Eligibility to receive Universal Credit in 2024

To qualify for a payment, you must meet several strict criteria:

• You must live in the UK and be aged 18 or over (with limited exceptions for 16-17 year olds).
• You or your partner must be under State Pension age.
• Your total household savings, money, and investments must be £16,000 or less.
• You must have a low income or be completely out of work.

Who will not receive Universal Credit?

Even if you have a low income, you will generally not be eligible if:

1. You have more than £16,000 in household capital/savings.
2. Both you and your partner have reached State Pension age (you would claim Pension Credit instead).
3. You are a full-time student (though parents and disabled students have specific exceptions).
4. You are subject to “No Recourse to Public Funds” due to your immigration status.

When did the 2024 payment changes take effect?

The official start date for the new financial year rates was 8 April 2024, but the actual date you received the extra money depended entirely on your individual Assessment Period (AP).

Because Universal Credit is calculated based on your circumstances over a one-month period, the increase only applies to a “full” period that begins on or after the uprating date.

How to calculate your first increased payment date

You can pinpoint exactly when the 6.7% uplift reached your personal account by tracking your statement through these specific stages:

1. Check your most recent Universal Credit statement to find your Assessment Period dates.
2. Identify the first AP that began on or after 8 April 2024.
3. Add seven days to the end of that AP to find your payment date.
4. Verify if your earnings changed during that month, as this affects the final payout via the taper rate.
5. Log into your UC Journal to see the breakdown of the 6.7% increase in the “What we owe you” section.
6. Report any changes in rent or service charges immediately if they coincided with the April window.
7. Confirm that your bank details are correct to ensure the payment arrives on time.

While these steps help you track the timing of your new payment, it is equally important to understand how the 2024 increase interacts with those moving from older benefits, where the calculation rules change significantly.

Managed Migration: Impact on Tax Credit switchovers

For those receiving “Migration Notices” to move from legacy benefits (like Working Tax Credits) to Universal Credit in 2024/25, the timing of the 6.7% increase is critical due to Transitional Protection.

This protection is a “top-up” designed to ensure you aren’t worse off at the exact moment you switch.

If you moved to Universal Credit before 8 April 2024, your Transitional Protection was calculated based on the old, lower rates.

When the April 6.7% uprating occurred, your standard Universal Credit elements went up, but your “Transitional Element” was eroded (reduced) by the exact same amount.

Essentially, the annual increase didn’t give you more money; it simply swapped “protection” money for “standard” money, leaving your total take-home pay identical to the previous month.

Will the Universal Credit be received in cash?

Universal Credit is almost exclusively paid via electronic transfer into a bank, building society, or credit union account.

It is not “received in cash” in the traditional sense of a post office payout. However, for those who truly cannot open or manage a standard bank account, the DWP provides the Payment Exception Service.

This service allows you to receive your benefits via a voucher (sent by email, SMS, or post), which can be redeemed for cash at PayPoint outlets.

In practice, this is treated as a temporary measure. A common pattern for new claimants is the requirement to eventually open a “Basic Bank Account” to ensure long-term financial inclusion and more reliable access to the housing element.

For those facing financial hardship while waiting for their first increased payment, If you find yourself struggling during the mandatory five-week wait for your first payment, it is worth understanding the rules regarding how many times can you get an advance on Universal Credit to cover essential costs like food or utilities.

How long will I receive Universal Credit?

There is no fixed “time limit” on how long you can receive Universal Credit. You will continue to receive it as long as you meet the eligibility criteria and follow your “Claimant Commitment.” However, your payments will stop if:

• Your earnings (or your partner’s earnings) rise high enough that your payment is tapered to £0.
• Your savings increase above the £16,000 threshold.
• You reach State Pension age (unless you are in a “mixed-age” couple).

What are the new rates for the universal credit child element?

For families, the child element is one of the most significant parts of the monthly award. In 2024, the government maintained the “two-child limit,” meaning you generally only receive an additional amount for your first two children, unless they were born before 6 April 2017.

Summary of Child and Childcare Elements

Element Type	2023/24 Rate	2024/25 Rate (6.7% Increase)
First Child (Born before 6 April 2017)	£315.00	£333.33
Child Element (Standard)	£269.58	£287.92
Disabled Child Addition (Higher)	£456.89	£487.58
Childcare Costs (Max for 1 child)	£950.92	£1,014.63

How does the increase impact self-employed business owners?

For those running a small business, the universal credit increase 2024 interacts with the Minimum Income Floor (MIF). The MIF is an assumed level of earnings used if you are “gainfully self-employed.”

On 1 April 2024, the National Living Wage rose to £11.44 per hour. Because the MIF is calculated by multiplying this rate by your expected hours, the “assumption” of your income also rose.

A common observation among self-employed claimants is a sense of confusion when their total award doesn’t reflect the full 6.7% increase; this is typically the result of the higher MIF acting as a counterweight to the new allowance rates.

Final Summary

The universal credit increase 2024 provided a necessary 6.7% uplift to help households keep pace with inflation.

The most effective way to verify your new payment level is to cross-reference your latest digital statement against the official 2024/25 rate increases to ensure every element has been correctly adjusted.

If you are self-employed, pay close attention to the new Minimum Income Floor based on the £11.44 National Living Wage. If you rent privately, check that your housing element now reflects the updated LHA rates for 2024.

If you believe your payment calculation is incorrect, you can request a “Mandatory Reconsideration” via your journal within one month of the disputed statement date.

FAQ

Will I get a backdated payment for the April increase?

No. The DWP does not backdate the increase. The new rate only triggers from the start of your first assessment period that begins on or after 8 April 2024.

Did the benefit cap go up in 2024?

No, the benefit cap was not increased in 2024. It remains at £22,020 per year for families outside London. This means some households may not see any benefit from the 6.7% increase.

Can I receive Universal Credit if I have a mortgage?

Yes, but you won’t get help with mortgage repayments. You may, however, be eligible for a Support for Mortgage Interest (SMI) loan after a certain period on the benefit.

Is the 6.7% increase the same for Carer’s Element?

Yes. The Carer’s Element of Universal Credit increased from £185.86 to £198.31 per month for those providing 35+ hours of care.

Do I need to tell the DWP about the increase?

No, the 6.7% annual uprating is applied automatically. However, you must report any specific changes to your rent or earnings via your journal.

Does the increase affect my Advance Payment repayments?

The repayment amount typically stays the same as it is a fixed deduction, though the higher standard allowance might leave you with a slightly higher net balance.

What is the Work Allowance for 2024?

For those with housing costs, the Work Allowance rose to £404 per month. For those without housing costs, it increased to £673 per month.

What happens if I move in with a partner?

You must report this immediately. Your claims will be merged into a joint claim, and your combined income and savings will be assessed against the £16,000 limit.