Read this post to find out everything you need to know about the 2024 increase in Universal Credit: How much do you think it will go up in 2024?
Universal Credit Increase 2024
This is what the Department for Work and Pensions has said about the new rates for increasing Universal Credit in 2024. When the new fiscal year starts in April, UK families will have to pay more each month.
Based on the Consumer Prices Index (CPI) rate of inflation for September 2023, benefits and tax payments that are tied to inflation will go up by 6.7% starting in April 2024. This piece will talk in depth about this rate and other important information about the Universal Credit Increase 2024.
Understanding Universal Credit Increase Significance
The most current information, from October 2023, shows that more than 6.2 million people in the UK are claiming Universal Credit. Of these, 172,000 live in Birmingham. The average monthly payment from Universal Credit could be anywhere from £630 to £1,140, depending on things like whether you are a single or joint claimant, if you have children, and so on.
Benefit payments usually go up in April of every year, but it depends on how fast prices went up in September of the previous year. Most of the time, the rise in benefits comes after the rate of inflation from September of the previous year. As was already said, beneficiaries may see a 6.7% increase in April. For people on Universal Credit, this means a rise of just under £25 per month.
Universal Credit Increase Overview 2024
| Article Heading | Universal Credit Increase 2024 |
| Country | United Kingdom |
| Provided By | DWP |
| Increase Rate 2024 | 6.7% |
| Adjusted According to | Inflation and Cost of Living |
| More Information | Read Here |
What is the Expected Increase in 2024?
It was revealed by the Chancellor in his Autumn Statement that payments for Universal Credit and all benefits would go up by 6.7% each year. This is in line with the September Consumer Price Index. It was thought that the Universal Credit Increase 2024 would be based on the CPI for October.
The Treasury thinks that 5.5 million Universal Credit families will get an extra £470 in 2024–2025. But new study from the New Economics Foundation shows that people on universal credit may be up to £670 worse off in April 2024, even if rates rise at the same rate as inflation.
The New Economics Foundation has new information that shows people on UC could be as much as £670 worse off in April 2024, even if rates rise at the same rate as inflation.
Universal Credit Increase Amount 2024
The regular stipend for UC claimants under 25 who are not married is currently £292.11 per month. It would go up by 6.7% to £311.68, which is an increase of £19.57. For single claimants over 25 years old, the standard monthly stipend is £368.74. If benefits went up by 6.7%, payments would go up to £393.45 a month, which is an increase of £24.71.
Your payment will go up by £30.72 a month to £489.23 if you live with a partner and are both under 25. If you live with your partner and both of you are over 25, your monthly payment can go up by £38.78, from £578.82 to £617.60.
Concluding Words
Universal Credit includes a basic allowance, the amount of which changes based on the person’s situation, and extra money that some people may get if they meet the requirements.
Some 5.5 million people who get Universal Credit are expected to benefit from the increase in 2024–2025. They will gain an estimated £470 a year. How much money is made from the rise will depend on which of the many payment parts is received.
Still, some economists think that even if payments keep going up in theory, they will actually go down, leaving people with less money overall. It also won’t be able to keep up with the rising costs of living. An economist says that even though inflation is at 6.7%, the amount of money that struggling families have to pay for things stays the same.
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