Martin Lewis says £570 boost coming for people who claim Universal Credit

Martin Lewis has said a £570 boost is coming for people who claim Universal Credit from the Department for Work and Pensions (DWP). The BBC and ITV star's team at MSE have spoken out in the wake of Chancellor Rachel Reeves' landmark Budget on Wednesday.

MSE explained: "Universal Credit monthly debt deductions to be reduced. If you owe money for debts including rent, council tax, utility bills and advances in benefit payments, you can have deductions automatically taken from your monthly Universal Credit standard allowance.

"Currently, the cap on these deductions is up to 25%. Under new plans announced today, this cap will be lowered to up to 15% from April 2025. The Government says this could boost a claimant's income by an average of £420 a year."

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As well as this, Mr Lewis explained benefits, including Universal Credit and Child Benefit, will increase by 1.7% from April 2025. The government Budget documentation explains: "Other State Pension and benefit rates covered by the Department for Work and Pensions (DWP) statutory review will be increased by 1.7%, in line with the increase in CPI in the year to September 2024.

"This includes universal credit and other benefits and statutory payments linked to participation in the labour market; and additional state pension and pension credit elements other than the standard minimum guarantee."

The Budget docs go on to state: "As announced in the Budget, the overall cap for Universal Credit (UC) deductions will be reduced to 15% from April 2025. In addition, child maintenance deductions will now be moved up the priority order before repayments of Advances."

Around 5.7 million Universal Credit families are forecast to benefit from uprating with an average annual gain for a family on Universal Credit estimated to be £150 (equivalent to an increase of around £12.50 per month), however gains will vary depending on the elements received by different family types.