People on Universal Credit getting £570 boost from DWP after rule tweak

People on Universal Credit are being handed a handy £570 boost from the Department for Work and Pensions ( DWP ). The government is creating a new Fair Repayment Rate which caps deductions made through Universal Credit at 15% of the standard allowance. Before this Budget, it was 25%.

This means approximately 1.2 million households will keep more of their Universal Credit payment each month, with households expected to be better off by an average of over £420 a year. It comes as it emerged £150 uplifts in Universal Credit annually, too.

Under-25 single claimants will get £316.98 a month, up from £311.68 now. Under-25 joint claimants will get £497.55 a month, an increase from £489.23. Over-25 single claimants are to receive £400.14, up from from £393.45.

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Over-25 joint claimants will get £628.09, an increase from the current £617.60. Elsewhere, The Help to Save scheme has been extended and widened. The scheme offers lower earners a savings account where they can save a maximum of £50 a month for 4 years and receive a 50% government boost at the end of year 2 and year 4. This helps workers kickstart a lifelong savings habit and offers up to £1,200 over the 4 years.

The scheme was due to end in April 2025 but has been extended by 2 years until April 2027. Eligibility for the scheme will widen from April 2025. It will be open to all working Universal Credit claimants earning at least £1 a month.

In her statement, the Chancellor announced that from 1 April 2025, the National Living Wage will increase from £11.44 to £12.21 an hour for employees aged 21 and over. That’s an increase of 6.7% from 2024.

For 18 to 20 year olds, it will increase by £1.40 an hour, to £10.00 an hour. This is the first step towards the government’s plan to remove discriminatory age bands and deliver a genuine living wage that all adults can benefit from.