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Upcoming Universal Credit Changes Add £420

Starting in April 2025, Universal Credit changes and uprating will provide crucial financial relief for families.

With the cost of living rising, the government is making changes to Universal Credit to help families keep up. From April 2025, up to £420 more a year could be in our pocket. 

How? The Department for Work and Pensions (DWP) will lower Universal Credit debt repayment deductions from 25% to 15% starting.

This means families will be able to keep more of their monthly allowance. Save the Children estimates that families could get £39 extra per month for single parents and £62 for two-parent families

Benefits Uprating

Benefit claimants will also be given a 1.7% pay rise next year as part of the new Government Budget. This is known as benefit uprating. Each year, benefits are increased to match inflation. This ensures that the value of benefits doesn’t drop as prices increase, so families can still afford essentials like food, rent, and transport.

We can see the new benefits uprated amounts for 2025 by clicking on the Benefits and Work page here. 

Key Universal Credit Migration Dates

At the start of 2025, the government will increase the migration notices it sends to recipients of Employment and Support Allowance (ESA), both with and without Housing Benefit. The majority of migrations will be completed by December 2025. 

It’s important to stay on top of these dates to ensure a smooth transition to Universal Credit. Look out for official letters or notifications from the Department for Work and Pensions (DWP).  

For individuals affected by the managed migration to Universal Credit in the UK, there are several helplines and support options available across England, Scotland, Wales, and Northern Ireland. These services provide guidance on making a new claim and understanding the transition process.

General Helplines for UC Migration Support
  1. Universal Credit Help to Claim Helpline:
    • England, Wales, and Scotland
    • For Northern Ireland helpline contact the Universal Credit Service Centre instead.
      • Freephone:  0800 012 1331
      • Textphone:  0800 012 1441 (If you are deaf, have hearing loss or tinnitus, or have speech and communication needs)
  2. Citizens Advice
  3. Advice NI for Northern Ireland 

Photo: Prostock-studio / Shutterstock

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