DWP Universal Credit set to increase £106 per Week: Universal Credit is a government benefit that helps people who are out of work, on a low income, or unable to work due to health reasons. Recently, big changes have been announced by the UK Chancellor Rachel Reeves, as part of the 2025 Spring Budget. Let’s break down these updates in simple terms and explain everything you need to know about who can get Universal Credit and how it works.
What Is Universal Credit?
Universal Credit is a monthly payment that helps people cover their living expenses. In Scotland, you can choose to get it twice a month. It replaces a number of older benefits like Housing Benefit, Child Tax Credit, and Jobseeker’s Allowance.
You may be eligible if you are:
- Out of work
- Working part-time or self-employed
- Too ill to work
It combines several old benefits into one single monthly payment. This makes it easier to manage your money and helps you better understand how much support you’re getting.
Budget Changes Announced in 2025
In her speech to the House of Commons, Chancellor Rachel Reeves announced that the standard Universal Credit allowance will go up from £92 a week in 2025-26 to £106 a week by 2029-30. This means people on Universal Credit will get more money to support their living costs.
However, there’s also a change to the Universal Credit health element, which will be cut by 50% and then frozen for new claimants. This means if you’re applying for help because of a health condition in the future, you may get less support than before.
Ms Reeves explained that the aim is to improve a system that isn’t working properly and help more young people get into work, education, or training. She also confirmed that there will be no new tax increases in the spring statement.
Who Can Claim Universal Credit?
You can apply for Universal Credit if:
- You live in the UK
- You are aged 18 or over (some exceptions apply to 16 and 17 year olds)
- You are under State Pension age
- You have savings or investments under £16,000
Even if you’re working, you may still qualify if your income is low. You’ll need to make a joint claim with your partner if you live together, even if they don’t qualify.
If you get a Migration Notice (a letter telling you to switch from old benefits to Universal Credit), you must apply by the date in the letter, or your payments could stop.
Special Rules for Students
Students can also get Universal Credit in some cases. You may be eligible if:
- You’re responsible for a child
- You live with a partner who qualifies
- You have a disability or health condition and get certain disability benefits
- You’re under 21 and not supported by parents while studying
If you’re a student with a disability, you must have been assessed as having limited ability to work before your course started.
What If You’re Under 18?
You might still be able to get Universal Credit if:
- You have a disability and a doctor’s note
- You’re pregnant or recently had a baby
- You care for someone who gets a disability benefit
- You don’t have support from parents or local authority
- You’re living with a partner and have a child together
Armed Forces and Universal Credit
If you’re in the armed forces and posted overseas, you can still apply using a designated address for military personnel. This ensures you can still receive support even while serving abroad.
Universal Credit is meant to simplify and support people who are struggling with money, whether they’re out of work or dealing with difficult life situations. With the new changes coming in future budgets, the weekly amount will go up, but some support for health-related cases may reduce. It’s important to check whether you qualify using an online benefits calculator or by contacting the Department for Work and Pensions (DWP). If you get a Migration Notice, don’t ignore it—apply on time to avoid losing your support.
Universal Credit is not just about money—it’s also about making sure people have the help they need to get back on their feet, whether that means finding a job, getting medical help, or continuing their education. Understanding how it works can help you or someone you know make the most of this important benefit.
FAQ
What is Universal Credit and who can claim it?
Universal Credit is a monthly payment to help with living costs. You can claim it if you’re on a low income, out of work, or unable to work due to health issues. You must be over 18, under State Pension age, and have savings below £16,000.
How much will Universal Credit increase in 2025?
The Universal Credit standard weekly allowance will rise from £92 in 2025-26 to £106 by 2029-30, as announced in the Spring Budget.
Can students apply for Universal Credit?
Yes, students may be eligible if they have children, a disability, or live with a partner who qualifies. Other exceptions apply, especially for those under 21 without parental support.
What is a Migration Notice for Universal Credit?
A Migration Notice is a letter telling you to switch from older benefits to Universal Credit. You must apply by the deadline mentioned, or your current payments may stop.
What are the new changes to health support in Universal Credit?
The health element of Universal Credit will be cut by 50% and then frozen for new claimants, meaning reduced support for those applying due to health reasons.
Will Universal Credit stop when I reach pension age?
Yes, Universal Credit usually ends when both you and your partner reach State Pension age. You may then qualify for Pension Credit instead.
They both need to step down if any cuts should be made it should be all the extra pay they claim we all need to vote them out