As is well known, Universal Credit is the financial support provided by the UK, commonly known as social welfare, aimed at helping and supporting low-income individuals in coping with the cost of living crisis.
Universal Credit is a monthly allowance provided based on individual circumstances, covering aspects such as raising children, housing costs, caring for disabled relatives, and more. This year, due to the rising inflation rate in the UK, the government has made specific changes to Universal Credit. In 2023, due to inflation and the increase in the cost of living, Universal Credit rose by 10.1%. In April 2024, Universal Credit will further increase by 6.7%.
What is Universal Credit?
Universal Credit is a form of financial support designed to assist UK citizens in covering their living costs, provided on a monthly basis for low-income, disabled, unemployed, and unpaid carer recipients. This welfare is administered through the Department for Work and Pension and covers over 20 million people across the UK.
This support consolidates six benefits into a single payment, simplifying the welfare system. The six benefits include income support, JSA (Jobseeker’s Allowance), ESA (Employment and Support Allowance), child tax credit, housing benefits, and working tax credit.
Individuals eligible for this support need to meet the following criteria:
- Age and location: The recipient must be 18 or above but below the state pension age and reside in the UK.
- Eligible dependents: Must have a low income or be out of work.
- In some circumstances, recipients aged 16 or 17 may also qualify for credit assistance.
- Savings: Should have less than £16,000 in savings, investments, and money.
The changes in 2024 include:
- Monthly standard allowances for claimants under 25 will increase from £292.11 to £311.68, and for claimants over 25, it will rise from £368.74 to £393.45.
- Monthly payments for couples under 25 will increase from £458.51 to £489.23, and for couples over 25, it will rise from £578.82 to £617.60.
People claiming other benefits, including Personal Independence Payment (PIP), Disability Living Allowance, and Attendance Allowance, will also see increases in their monthly payments.