Universal Credit claimants told bank balance will get £420 boost

Universal Credit claimants will be getting an increase to their payments over the next year. Millions will see their bank accounts boosted by £420 in 2024/25.

The increase has been confirmed following the release of the inflation figures. The inflation rate of 1.7% determines how much benefits will rise by from next April.

It will be worth up to an extra £420 a year. Details were confirmed by Chancellor Rachel Reeves at the Budget on Wednesday.

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John Pears, CEO of Lowell, said the increase would help ease the strain on struggling families. He explained: "The autumn Budget brings some welcome relief to financially vulnerable households in a tricky economic landscape, with up to an extra £420 from Universal Credit. This added financial breathing room will make a meaningful difference, helping to alleviate pressures for those managing problem debt or struggling with rising costs."

As well as benefits, the state pension will be increasing by around 4%, the higher rate down to the triple lock guarantee which ensure it increases in line with whatever is highest out of inflation, wage growth or 2.5%. The minimum wage is also going up by 6.7%, delivering a boost for the lowest paid workers.

Mr Pears said there were encouraging signs for some of the worst off: "There are a number of small changes here that will represent an encouraging step towards improving financial stability for many. A continued commitment to supporting essential services and inflation-mitigation strategies such as the confirmed 1.7% rise in benefit payments, 4.1% pension rise, and the rise in living wage by 6.7%, will help ease the broader cost of living pressures for many households and our customers.”