Universal Credit Increase Set for Millions in June

Universal Credit Increase: As the cost of living continues to impact millions across the UK, there’s some hopeful news for Universal Credit claimants. A Universal Credit Increase has been announced and is scheduled to begin from June 2025, bringing much-needed relief to households struggling with rising food prices, energy bills, and other essentials. While the increase may appear modest on paper—just 1.7%—for many families, this change can make a noticeable difference in their monthly budget.

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In this article, we’ll explore everything you need to know about the Universal Credit Increase in 2025, including who will benefit, how much extra you can expect, and how to ensure your payments reflect the updated rates.

What Is Universal Credit?

Universal Credit is the UK government’s flagship benefit program aimed at supporting people with low income, those who are unemployed, or individuals who cannot work. It combines six major benefits into a single monthly payment:

Jobseeker’s Allowance (JSA)
Employment and Support Allowance (ESA)
Income Support
Housing Benefit
Child Tax Credit
Working Tax Credit

Universal Credit has been designed to adapt to the modern workforce—especially for those engaged in part-time, freelance, or flexible work arrangements. The payment adjusts based on income, housing situation, and household size.

Why Is There a Universal Credit Increase in 2025?

The Universal Credit Increase this year is directly linked to inflation rates. As per government updates, the Consumer Price Index (CPI) measured in April 2025 showed a 1.7% rise in the cost of living. To help claimants cope with this increase, the Department for Work and Pensions (DWP) has confirmed that Universal Credit payments will rise by 1.7% starting June 2025.

While this increase may not fully offset inflationary pressure, it’s a step toward providing meaningful relief to households experiencing financial strain.

New Universal Credit Payment Amounts

The payment increases will vary based on your personal circumstances. Here’s a brief overview of the updated standard allowances:

Claimant Category	Old Rate	New Rate (1.7% increase)
Single under 25	£311.68	£316.98
Single 25 or over	£393.45	£400.14
Couple both under 25	£489.23	£497.54
Couple one or both 25+	£617.60	£628.10
LCWRA Element	£416.19	£423.27

Additional components such as the Limited Capability for Work and Work-Related Activity (LCWRA) and Carer’s Element will also receive similar increases.

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Who Will Benefit the Most?

The Universal Credit Increase will benefit various groups across the UK, including:

Low-income families: Especially those with children, who may also receive additional child element increases.
People with disabilities: The LCWRA component increase directly supports those unable to work due to disability.
Caregivers: Those who provide unpaid care to others will also see increases in relevant elements.
Young claimants: Even individuals under 25 will benefit from the slight bump in standard allowances.

When Will You See the Payment Increase?

The exact date when you’ll receive the higher payment depends on your Universal Credit assessment period. If your assessment period starts after April 7, 2025, the increased amount will be reflected in your May or June payment.

Examples:

If your assessment starts on 1 April, you’ll receive old rates in April.
If it starts on 1 May, your May payment will include the new increased rate.
If it begins on 1 June, you’ll see the increase reflected at the end of June.

You can check your Universal Credit journal or online account to verify your specific assessment period and when changes will apply. Universal Credit Increase

How to Confirm Your Payment Increase

Here are three quick ways to verify whether your payment will reflect the Universal Credit Increase:

Review Your Online Account: Log into your Universal Credit portal and check your payment breakdown.
Check Notices from DWP: Any changes in your payment will be notified via message or letter from the Department for Work and Pensions.
Contact DWP Directly: If in doubt, you can speak to a Universal Credit advisor or use Citizens Advice for guidance.

Making the Most of Universal Credit in 2025

Getting a slight bump in payments is helpful, but you can maximize your support by:

Updating your circumstances regularly (income, housing, family changes).
Exploring additional benefits, like Council Tax Reduction or Free School Meals.
Getting financial advice from government-backed services or trusted nonprofits.

Being proactive ensures you receive every pound you’re entitled to, and don’t miss out due to outdated or incomplete information.

Conclusion

The Universal Credit Increase in June 2025 may seem small, but for many households, it will bring welcome relief in the face of ever-growing expenses. With a 1.7% rise reflecting inflation, the updated payments ensure that Universal Credit keeps up with economic changes—at least partially.

If you’re a current claimant or plan to apply soon, stay informed, verify your payment schedule, and take full advantage of available support. Sometimes, small increases can make a big difference—especially when every penny counts.

FAQs

Q1. What is the Universal Credit increase in June 2025?
A. Payments will rise by 1.7%, reflecting April’s inflation data, effective for most claimants by June 2025.

Q2. Who qualifies for this increase?
A. All existing Universal Credit recipients, including low-income earners, families, disabled individuals, and carers.

Q3. When will the higher payments hit my account?
A. Depending on your assessment period, payments will increase either in late May or June 2025.

Q4. Will additional elements like LCWRA also increase?
A. Yes, elements like LCWRA and Carer’s Allowance will also see a 1.7% increase.

Q5. How can I confirm if my payment is going up?
A. Check your Universal Credit account or contact DWP for confirmation.