Universal Credit (UC) claimants are set to see special payments and changes to their benefit amounts, with several important updates coming from the Department for Work and Pensions (DWP) that will impact millions of people across the UK. These updates, designed to increase financial support for families and individuals, come at a time when many are facing rising living costs.
Here’s everything you need to know about the upcoming changes, including payment boosts, increased allowances, and migration notices.
Increased Payments for Over 1 Million Households
In a significant change, starting from April 29, 2025, Universal Credit claimants will see their monthly deductions reduced from 25% to 15%. This reduction in the amount taken from a claimant’s UC payment will benefit more than 1 million households.
Approximately 700,000 families with children will be among the beneficiaries, and some households will see their monthly payments increase by up to £35. This change is part of the DWP’s commitment to making the repayment process fairer and more manageable for UC claimants, with the potential to provide an annual boost of up to £420 per family.
1.7% Uplift in Most Benefits, Including Universal Credit
Another important change for UC claimants is the 1.7% increase in most benefits, which will be implemented starting in May 2025. This uplift will affect a wide range of claimants, from single adults to those with additional needs. Below are the key changes:
- The standard allowance for single adults over 25 will increase from £400.14 to £406.94 per month.
- The carer’s element will rise from £198.31 to £201.68.
- The limited capability for work component will go up from £156.11 to £158.76.
- The work-related activity support will increase from £416.19 to £423.27.
For those whose assessment period began before April 7, 2025, the increased amounts will appear in their payment starting May 13, 2025. For those with an assessment period starting after April 7, the new rates will apply from June 2025.
Migration Notice for Legacy Benefit Claimants
One of the most critical changes coming from the DWP is the migration of claimants from legacy benefits to Universal Credit. If you currently receive legacy benefits, such as income-related Employment and Support Allowance (ESA), you may have already received—or will soon receive—a Migration Notice letter.
These letters are being sent to around 400,000 households, notifying recipients that they must transition to Universal Credit by March 2026. This change will impact those who still receive legacy benefits from the pre-Universal Credit system. The deadline for this transition has been brought forward from 2028 to 2026.
It’s important to act promptly if you receive this notice. Failure to make the transition within three months of receiving the letter will result in your benefits being ended. To avoid any disruption, you should start the process of claiming Universal Credit as soon as possible.
For further information about how to claim Universal Credit, visit the Universal Credit section on gov.uk.
What to Do if You Receive a Migration Notice
If you receive a Migration Notice, here are the steps you should take:
- Act quickly: You have three months from the date of the letter to claim Universal Credit. After this time, your legacy benefits may stop, and you could face delays in receiving any support.
- Prepare your claim: Gather the necessary documentation, such as proof of identity, income, and housing costs, to complete your UC claim.
- Seek help if needed: If you need assistance with your claim or more time to gather documents, you can contact the Universal Credit Service Centre at 0800 012 1331 or visit your local Jobcentre for support.
The Citizens Advice website also offers helpful resources and step-by-step guides for claimants making the switch.
Special Payments for Certain Claimants
If you previously claimed Income Support due to a disability or health condition, and you were not receiving Incapacity Benefit or Severe Disablement Allowance at the time of your claim, you may be entitled to a special payment from the DWP. These payments are part of an ongoing review of legacy benefit claims, and you might be eligible if you meet the criteria.
To determine if you’re eligible for a special payment, you can contact the DWP’s Benefits Freephone at 0800 022 4250, selecting option 2 for Income Support, and inquire about the ‘Income Support Claims Review exercise.
Conclusion
The recent changes announced by the DWP mark an important shift in how Universal Credit and legacy benefits are managed, offering financial relief and clearer guidance for millions of claimants. With reduced deductions, increased payment amounts, and a specific timeline for legacy benefit migration, claimants should pay attention to these updates to avoid any disruption in their support.
If you’re affected by any of the changes mentioned above, be sure to act promptly, gather necessary information, and contact the appropriate services for guidance. For ongoing updates and more information on claiming benefits, visit the official gov.uk Universal Credit page.