January 13, 2025 – Big updates are coming to Universal Credit this year, and they’re set to impact millions of people across the UK. The government has announced new measures aimed at helping families deal with rising living costs and improving the benefits system. Here’s everything you need to know about what’s changing and how to stay on top of it.
The Key Changes
- Benefits Are Going Up
From April 2025, Universal Credit payments will increase by 1.7% to keep up with inflation. This means a single adult over 25 on the standard allowance will see their monthly payment rise from £368.74 to £374.02. It’s not a massive increase, but it’s a welcome boost for those struggling with everyday expenses. - More Support for Carers
Carers will see a big improvement too. The earnings threshold for Carer’s Allowance is rising from £151 to £181 per week. This gives carers the opportunity to earn more while still qualifying for this essential support. - Legacy Benefits Are Ending
The clock is ticking for those still on legacy benefits like Income Support or Housing Benefit. The government is pushing to complete the switch to Universal Credit by the end of 2025. If you get a migration notice, don’t ignore it—failure to act could mean losing your benefits entirely. - Work Allowance Increases for Families
If you’re working and have children or someone with a disability in your household, you’ll benefit from an extra £50 a month in your work allowance. This means you can earn more money before your Universal Credit payments are reduced, giving families a bit more breathing room. - Stay Updated to Avoid Problems
The Department for Work and Pensions (DWP) is encouraging all claimants to keep their online accounts updated. If there’s a change in your income, living situation, or family setup, make sure to report it right away. This will help ensure your payments stay accurate and on time.
How to Prepare
If you’re on Universal Credit—or you’re moving to it soon—now’s the time to check your details. Make sure your account is up to date, review your Claimant Commitment, and set reminders for any deadlines. If you’re unsure about anything, reach out to organizations like Citizens Advice for free help and advice.
Why This Matters
The government says these changes are about making Universal Credit fairer and more effective. While the updates won’t fix every financial struggle, they’re designed to offer more flexibility and support, especially for carers and working families.
