Thousands of Universal Credit claimants are set to see their payments increase this month (June 2024), following a significant rise that began earlier this year.
In April, millions of benefit recipients, including those on Universal Credit, experienced a 6.7% increase in their payments. This adjustment, announced by Chancellor Jeremy Hunt during the autumn statement in 2023, was designed to align with September’s inflation figures.
During his announcement, Chancellor Hunt informed MPs in the House of Commons that the Government would increase Universal Credit and other benefits by 6.70%, reflecting the inflation rate at that time. He emphasized that this adjustment would benefit approximately 5.5 million households, translating to an average increase of £470 annually per household.
DWP Universal Credit £756 Deductions
When will be Universal Credit £470 raise paid?
However, not all Universal Credit recipients saw this increase immediately. Due to the way Universal Credit is calculated—based on individual circumstances each month through what are known as “assessment periods”—some recipients are only now receiving the increased payments in June.
The charity Turn2Us elaborated on this, explaining: “For many benefits, new rates will take effect from April 8. However, for some Universal Credit claimants, increased rates will take effect around June. This delay occurs because the new rate isn’t applied until the first assessment period beginning on or after April 8.”
For instance, if an assessment period starts on March 26 and runs through to April 25, the new rate will not apply until the next assessment period begins on April 26. Consequently, the updated payment reflecting the increase would not be received until early June.
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This staggered implementation has been a point of contention for some recipients who are in immediate need of the increased support. While the increase is a positive move to help families cope with rising living costs, the delay in receiving these benefits has caused frustration among some claimants who are struggling to make ends meet.
What UC claimants think of this DWP increase?
While the 6.7 percent increase is a welcome relief for many struggling households, the phased implementation highlights the complexities and potential shortcomings of the current benefits system. The delay in receiving the increased payments can exacerbate financial difficulties for those living paycheck to paycheck.
Moreover, this increase, although significant, may still fall short of addressing the broader issue of rising living costs and inflation, which continue to outpace wage growth and benefits adjustments. As the cost of living crisis persists, there is an ongoing debate about whether further increases in benefits or additional support measures are needed to adequately support the most vulnerable populations.
Recent news indicates that advocacy groups and charities are calling for more comprehensive DWP reforms to the benefits system to ensure timely and adequate support for all recipients. There is also increasing pressure on the government to explore alternative measures, such as direct subsidies for essential goods and services, to provide more immediate relief to those in need.