Universal Credit update to give people over 25 £725 more

There is news for Universal Credit recipients as the standard allowance is set to soar, with the Welfare Bill making its way through Parliament and promising a "biggest permanent boost" to payments. This could see claimants pocketing an extra £250 annually over the next four years compared to current inflation-linked rises.

In a new update, the government confirmed that the potential change would mark a significant rise, with single claimants aged 25 and above approximately £725 better off by 2029/2030 according to the IFS. Four million households could be affected by this rise.

As the Welfare Bill inches closer to becoming law, there's a mix of optimism and concern. While the restrictions on Personal Independence Payments and Universal Credit's health element have been criticised, the Bill also includes some lesser-known changes that could benefit millions.

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For disabled claimants, the cuts to Universal Credit's health element will outweigh the rise in standard allowance. Although an 11th-hour concession brought in protection for current claimantsso they won't be affected by the health element change.

Work and Pensions Secretary Liz Kendall said: “Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence.

“We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out.

"These reforms will change the lives of people across the country, so they have a real chance for a better future.

The government is reshaping benefits with revisions designed to encourage individuals away from dependency by addressing incentives within the current system. With the introduction of the Right to Try Guarantee, the reforms will legally protect disabled and health-compromised individuals wishing to re-enter the workforce from triggering an immediate reassessment.

200,000 people suffering from severe and unchanging disabilities will also no longer be reassessed, provided they meet the stipulated Severe Conditions Criteria. Though some disability charities express concern that the strict criteria exclude those with variable conditions like Parkinson’s.

The Bill has already passed through the House of Commons and is now on its way to the House of Lords before receiving Royal Assent and becoming law.

Currently, the standard allowance varies based on age and relationship status, ranging from £316.98 to £628.10 per month. Claimants can receive additional funds on top of these standard rates if they have extra expenses such as children, disabilities, or housing costs.