Universal Credit and other benefits are increasing in April - here's by how much

Tuesday, 9th February 2021, 10:11 am
Updated Tuesday, 9th February 2021, 10:11 am
(Photo: Shutterstock)

Those currently receiving benefits like Universal Credit will see payment rates increased at the start of the new tax year.

Jobseekers Allowance, Personal Independent Payment and State Pension are just some of the payments that will also increase in April, a move which is set to increase the revenue of millions of low-income households.

The increased payment rates will be introduced with the start of the new tax year, which begins on Tuesday 6 April.

Here is everything you need to know about it.

How is Universal Credit increasing?

As is to be expected from Universal Credit, there is no hard and fast answer to the question, “How will my benefits increase?”

How much more you will be entitled to come April will depend on your circumstances, your age, whether you have a disability, and if you have children or are a carer.

For those single and aged under 25, the standard allowance will rise from £256.05 to £257.33, while those over 25 will see their standard allowance rise from £323.22 to £324.84.

Joint claimants under 25 will have their standard allowance rise from £401.92 to £403.93, though if one or both of those joint claimants are 25 or over, the allowance will rise from £507.37 to £509.91.

For those with children

Those with a first child born before 6 April 2017 will see their amount go up from £281.25 to £282.50, while for those with a child after this date or second child and subsequent child, the extra amount is going up from £235.83 to £237.08.

For those with a disabled child, the lower rate addition payment will rise from £128.25 to £128.89, and the higher rate from £400.29 to £402.12.

The higher work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work is going up from £512 to £515; the lower work allowance for someone claiming Universal Credit with one or more dependent children or limited capability for work will rise from £292 to £293.

For those unable to work

Those deemed to have limited capability for work will see an increase from £128.25 to £128.89, while for those deemed to have limited capability for work or work-related activity, the extra amount is going up from £341.92 to £343.63.

For carers

If you are caring for a severely disabled person for at least 35 hours a week and are a Universal Credit claimant, you can get a boost in payments as of April 2021, an increase from £162.92 to £163.73.

How do the increases affect the Universal Credit uplift?

The increase is not related to the £20 Universal Credit “uplift”, the future of which remains uncertain.

In January, Chancellor Rishi Sunak was reportedly considering giving nearly six million benefit claimants a £500 payment as an alternative to the £1,000 yearly uplift to Universal Credit.

If the Chancellor does go ahead with these plans, Labour are warning that failing to give families a “helping hand” through the coronavirus pandemic would “slow our economic recovery as we come out of it”.

Labour leader Sir Keir Starmer said: “Families across the UK have spent the past year worried for their loved ones, their jobs and their family’s security. Millions of people have had to juggle childcare with working from home, have seen jobs or incomes cut or been excluded from self-employed support.

“Without action from Government, millions of families face a £1,000 per year shortfall in the midst of a historic crisis.”

How the future of the uplift looks is yet to be confirmed, and the Government could yet decide to continue the scheme, or scrap it entirely. Details will likely be confirmed as part of Sunak’s spring budget announcement on 3 March.

Everything else rising in April

Disability Living Allowance’s highest care component amount will rise to £89.60 (from £89.15), the middle amount will rise to £60.00 (from £59.70) and the lowest amount will go up to £23.70 (from £23.60).

Disability Living Allowance’s highest mobility component amount will rise to £62.55 (from £62.25), and the lower amount will go up to £23.70 (from £23.60).

Employment and Support Allowance for under 25s will go up to £59.20 (from £58.90) and for those aged 25 and over, will rise £74.70 (from £74.35).

Housing benefit will rise to £59.20 (from £58.90) for under 25s, and to £74.70 (from £74.35) for 25s and over, while those entitled to main phase ESA will get £74.70 (up from £74.35).

Long-term Incapacity Benefit will rise to £114.70 (from £114.15), while contributions-based Jobseekers Allowance is rising from £59.20 (from £58.90) for under 25s, and to £74.70 (from £74.35) for those 25 and over.

Income-based Jobseekers Allowance will rise to £59.20 (from £58.90) for under 25s and to £74.70 (from £74.35) for those 25 and over.

Maternity, paternity and shared parental pay will rise to £151.97 (from £151.20), and Pension Credit will rise to £177.10 (from £173.75).

Personal Independence Payment (PIP)’s daily living component will rise to £89.60 (from £89.15) for enhanced and £60 (from £59.70) for standard, while the mobility component will rise to £62.55 (from £62.25) for enhanced and to £23.70 (from £23.60) for standard.

A version of this article originally appeared on our sister title, the Yorkshire Evening Post