Universal Credit is a means-tested benefit designed to support individuals on low incomes, those out of work, or those unable to work due to illness or caregiving responsibilities.
Following a 6.7% increase in April 2024, Universal Credit rates rose to reflect inflation, bringing much-needed relief to claimants. In 2025, the rates will rise again by 1.7%, ensuring continued support as the cost of living increases.
This guide will break down Universal Credit rates for 2024/2025, explain eligibility criteria, and show you how to apply.
Universal Credit Rates 2024/2025
Universal Credit is a single payment that combines smaller allowances. How much you receive depends on factors like your age, living situation, and whether you have children or a disability.
Standard Allowance
| Circumstances | Monthly Rate 2024/2025 | Monthly Rate 2023/2024 | Increase |
|---|---|---|---|
| Single, under 25 | £311.68 | £292.11 | £19.57 |
| Single, 25 or over | £393.45 | £368.74 | £24.71 |
| In a couple, both under 25 | £489.23 | £458.51 | £30.72 |
| In a couple, one or both aged 25 or over | £617.60 | £578.82 | £38.78 |
Child and Disability Additions
Child Amounts
| Number of Children | 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|---|
| First child (born before April 6, 2017) | £333.33 | £315.00 | £18.33 |
| First child (born on or after April 6, 2017) | £287.92 | £269.58 | £18.34 |
| Second child | £287.92 | £269.58 | £18.34 |
Disabled Child Additions
| Rate | 2024/2025 | 2023/2024 | Increase |
|---|---|---|---|
| Higher rate | £487.58 | £456.89 | £30.69 |
| Lower rate | £156.11 | £146.31 | £9.80 |
Childcare Costs
Universal Credit can cover a portion of childcare costs regardless of how many hours you work.
| Number of Children | 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|---|
| One child | £1,014.63 | £950.92 | £63.71 |
| Two or more children | £1,739.37 | £1,630.15 | £109.22 |
Limited Capability for Work
If you have a medical condition or disability, you may qualify for additional payments.
| Circumstances | 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|---|
| Limited capability for work | £156.11 | £146.31 | £9.80 |
| Limited capability for work and work-related activity | £416.19 | £390.06 | £26.31 |
Carer Element
You may receive a carer element if you provide 35+ hours of care per week for someone receiving a qualifying disability benefit.
| 2024/2025 Rate | 2023/2024 Rate | Increase |
|---|---|---|
| £198.31 | £185.86 | £12.45 |
How Much Will Universal Credit Rates Increase in 2025?
From April 7, 2025, Universal Credit rates will rise by 1.7%, with the new standard allowance amounts as follows:
| Circumstances | New Monthly Rate | Increase |
|---|---|---|
| Single, under 25 | £400.14 | £6.69 |
| Single, 25 or over | £316.98 | £5.30 |
| In a couple, both under 25 | £497.55 | £8.32 |
| In a couple, one or both aged 25 or over | £628.10 | £10.50 |
Eligibility for Universal Credit
Universal Credit is available to individuals on low incomes, including:
- Unemployed people
- Those with a medical condition or disability
- Carers providing unpaid care
- Working individuals (including part-time or self-employed workers)
Key Eligibility Requirements:
- Must be 18 or older (with some exceptions for 16–17-year-olds)
- Must live in the UK
- Must have savings of £16,000 or less
- Must be below State Pension age
Universal Credit replaces several older benefits, including:
- Child Tax Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
How to Apply for Universal Credit
Applying for Universal Credit is simple and can be done online or by calling the Universal Credit helpline at 0800 328 5644.
Online Application Steps:
- Create an online account at the Universal Credit portal.
- Complete your claim within 28 days of account creation.
- Provide details such as your email, phone number, and bank account information.
- Prove your identity using documents like a driving licence or passport.
If you live with a partner, you’ll both need to create accounts and link them. You may also be asked to attend an appointment (either in person or over the phone) to finalize your claim.
How Universal Credit is Paid
Universal Credit is paid monthly. If your payment date falls on a weekend or public holiday, you’ll receive it the previous working day.
- First Payment: Usually takes around five weeks.
- Advance Payments: You can request an advance if you need money sooner.
Payments are deposited directly into your bank or building society account. If you don’t have one, contact the helpline for assistance.
