Major alterations to Universal Credit are on the horizon for next year, potentially affecting a vast number of recipients.
More than eight million individuals in the UK rely on Universal Credit, administered by the Department for Work and Pensions (DWP).
The imminent modifications encompass an increase in the standard allowance, the fundamental sum disbursed in Universal Credit before any supplementary disbursements or deductions.
However, forthcoming reductions are also slated for the health-related component for fresh Universal Credit applicants.
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The majority of traditional legacy benefits are transitioning to Universal Credit, with the final individuals expected to migrate by March 2026.
Universal Credit is supplanting Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
When required to shift to Universal Credit, individuals will be sent a “migration notice” via post, stipulating a three-month deadline to commence the Universal Credit application process.
Certain scenarios allow for the retention of old benefits; for instance, eligibility to continue claiming Housing Benefit remains for those in supported or temporary housing.
The standard Universal Credit allowance will escalate by 6.2% from April, surpassing the inflation rate. For individuals aged 25 and above, the standard allowance will elevate from £92 to £98 weekly.