Parents receiving Universal Credit can look forward to some much-needed financial relief in April 2025. The Department for Work and Pensions (DWP) has announced updates that will increase benefit payments, especially for families with children or childcare expenses.
These changes are designed to align benefit payments with inflation and address the rising costs of living. Here’s a detailed breakdown of what you can expect.
Adjustments
Starting in April 2025, there will be a 1.7% increase in child-related components of Universal Credit. This is great news for families as it ensures better financial support for raising children.
For children born before April 6, 2017, payments for the first or only child will rise from £333.33 to £339 per month. For additional children born after April 6, 2017, the payment will increase from £287.92 to £292.81 per month.
Disability Support
Families with disabled children will also see an increase in their financial assistance. If your child qualifies for the higher disability rate under Disability Living Allowance (DLA) or Personal Independence Payment (PIP), the payment will rise from £487.58 to £495.87 per month. Those eligible for the lower disability rate will see payments increase from £156.11 to £158.76 per month.
These adjustments are designed to provide additional financial security for families dealing with the unique challenges of raising a child with disabilities, including medical costs and other specialized needs.
Childcare
To support working parents, the DWP has increased the childcare cost component of Universal Credit. Families can now claim up to 85% of their childcare costs, which significantly eases the financial burden of childcare.
Here’s how the new maximum childcare payments compare:
| Childcare Costs | Previous Maximum | New Maximum |
|---|---|---|
| One child | £1,014.63 | £1,031.88 |
| Two or more children | £1,739.37 | £1,768.94 |
This update makes it more affordable for parents to remain in the workforce while managing childcare expenses.
Additional Support
Beyond these changes, some Universal Credit recipients may qualify for an extra £750 in financial assistance. Families are encouraged to check their eligibility to ensure they don’t miss out. Additionally, there’s ongoing dialogue around compensation for Waspi women, as the government faces mounting pressure on DWP payouts.
What Should You Do?
If you’re unsure how these changes affect you, log in to your Universal Credit account or visit your local Jobcentre. Be on the lookout for communication from the DWP about updated payment amounts and eligibility rules.
These updates offer a meaningful boost for families juggling the challenges of rising costs, childcare, and disability-related expenses. With this financial relief, you can focus on what matters most—your family.
SOURCE – LINK
FAQs
How much will the first child payment increase?
It will rise from £333.33 to £339 per month.
What is the new maximum childcare payment?
For one child, it’s £1,031.88; for two or more, £1,768.94.
What is the higher disability rate increase?
It increases from £487.58 to £495.87 per month.
Can families claim 85% of childcare costs?
Yes, families can claim up to 85% under the new rules.
When do the Universal Credit changes take effect?
They take effect in April 2025.
