Major changes are on the horizon for Universal Credit next year, affecting a large number of beneficiaries.
Universal Credit is utilized by over eight million individuals across the UK and managed by the Department for Work and Pensions (DWP).
Among the upcoming adjustments is an increase in the standard allowance, which serves as the foundational payment in Universal Credit prior to any supplementary disbursements or deductions.
However, there are also notable reductions scheduled for the health-related component for new Universal Credit applicants.
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The majority of existing legacy benefits are being substituted by Universal Credit, with the final transition slated for completion by the end of March 2026.
Universal Credit is taking over from Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to switch to Universal Credit will be notified via a “migration notice” sent by mail. This notice will stipulate a three-month period within which to commence the Universal Credit application process.
Exceptions exist where ongoing benefits may persist, such as the ability to maintain a Housing Benefit claim while residing in supported or temporary housing.
Beginning April of the following year, the Universal Credit standard allowance is set to rise by 6.2%, exceeding the inflation rate. For individuals aged 25 and above, the standard allowance will climb from £92 to £98 per week.
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