DWP Universal Credit Payments to Rise: Extra £470 a year

Millions of Universal Credit recipients will see an uptick in their payments from the Department for Work and Pensions (DWP).

This update was revealed by Chancellor Jeremy Hunt during last autumn’s financial announcement.

It could help many people, including older adults who have not yet reached the State Pension age, pay for necessities like rent, food, and home care services.

How much will my Universal Credit payments increase?

Chancellor Jeremy Hunt specified a 6.7% rise in Universal Credit and other benefits including Personal Independence Payment, aligning with the inflation rates of September 2023.

In real terms, the rise will provide an extra £470 a year on average for 5.5 million households.

However, people on Universal Credit could be as much as £670 worse off compared with the previous year, despite the rate rise, according to new analysis from the New Economics Foundation.

When is Universal Credit going up?

This adjustment to Universal Credit payments is effective from April 1, 2024.

Can I claim Universal Credit if I have retired?

No. You cannot claim Universal Credit if you have reached State Pension age. You may be eligible for other benefits as a pensioner though, depending on your circumstances. They might include:

• Attendance Allowance
• Housing Benefit if you rent the property you live in
• Carer’s Allowance
• Cost of Living Payments
• Help with NHS Prescriptions
• Support for Mortgage Interest if you own the property you live in
• Council Tax discount
• A free TV licence if you're aged 75 or over
• Pension Credit

Can I use my Universal Credit payment to pay for care?

Universal Credit is a benefit provided by the UK government for people who are on a low income or out of work.

While the payment isn’t intended to support older adults under 65 with the cost of their care, the additional money from the increase could allow some to set aside a budget for home care.

Older adults are more likely to have health issues and may need to pay for assistance with getting to and from medical appointments, dressing or washing.

It’s useful to know that adults below 65 may be eligible to claim PIP (Personal Independence Payment) which is a benefit specifically for people who struggle with daily tasks or mobility due to a long-term physical or mental health condition.

How will the Universal Credit payment rise help older adults?

Many older adults rely on benefits like Universal Credit to make ends meet and the increase in rates could help to improve their quality of life.

While there is still much work to be done to support the most vulnerable in society, this increase in rates is a welcome relief and could mean the difference between being able to pay for necessities or not.

Need help finding care in your area?

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If you prefer to speak to someone about care services near you or funding and benefits for care, you’re welcome to call our friendly advice line team on 01892 335 330.

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