Universal Credit Increase Set for Millions in June — See If You Qualify

By: Rebecca

On: Saturday, June 7, 2025 9:14 AM

Universal Credit Increase Set for Millions in June — See If You Qualify

Universal Credit Increase Set for Millions : Come June of the year 2025, millions of claimants for Universal Credit within the UK Payment shall experience an increase in their monthly payment.Bumping up the rate according to the indexation will be done in consideration of inflation as at April 2025 to grant relief to the affected persons from the squeezed cost of living.

If you are amongst the millions likely to be affected by the changes, it is important for you to know how the new payments will apply and when they will show up in your bank account. Let us dive into this important detail so that you can make the most of your Universal Credit.

How much is the increase in Universal Credit?

Key InformationDetails
Payment Increase Percentage1.7% increase from April 2025 inflation rate
Effective DateJune 2025 (depending on your assessment period)
New Monthly AllowancesFor example, Single under 25: £316.98, Single 25 or over: £400.14
Additional Elements IncreasedLimited Capability for Work and Work-Related Activity (LCWRA) rises from £416.19 to £423.27 per month
Official Sourcegov.uk Universal Credit updates

This 1.7% increase may not fully compensate for inflation, but it will still be a vital support for many families and individual claimants. If you keep the right information about your assessment period and new rates, you will be able to ensure that your payment increases correctly You should always check the official gov.uk Universal Credit website or the website of the Department for Work and Pensions for confirmed information.

What is Universal Credit?

Universal credit is a financial support scheme in the United Kingdom meant to assist people with low incomes or who are out of work.

Universal Credit Increase Set for Millions in June — See If You Qualify

The scheme merges six different benefits into one consolidated monthly payment:

  • Jobseeker’s Allowance (JSA)
  • Employment and Support Allowance (ESA)
  • Income Support
  • Housing Benefit
  • Child Tax Credit
  • Working Tax Credit

The main aim of Universal Credit is to adapt well to modern working patterns (such as part-time or flexible working).

Each year the government reviews Universal Credit rates in line with inflation to keep pace with rising costs. This year’s increase is particularly important as inflation has made living costs much more expensive.

Why is Universal Credit rising this time?

The June 2025 increase is premised on a straight 1.7% inflation rate (CPI); that is, the CPI defines how much have prices of quotidian goods and services been increased according to the government.

The rise may be modest, but it is a welcome relief for families suffering under high costs of food, energy, and living.

Who will benefit the most?

  • Families: Those with children will receive a direct benefit due to the increase in the Child Element.
  • Disabled claimants: The increase in the LCWRA element will be a big help for people with disabilities.
  • Caregivers: Those who provide unpaid care will also see an increase in payments.

When will you receive payments?

The new rates on your payments depend on your assessment period. Generally, if your assessment period starts on or after April 7, 2025, you will start seeing the increased amount from May. Otherwise, the increase will be implemented in June.

Example:

  • If your period starts on 1 April → April’s payment will be at the old rate.
  • If your period starts on 1 May → At the end of May you will receive a payment at the new rate.
  • If your period starts on 1 June → At the end of June you will receive a payment at the new rate.

How to find out if your payment will increase?

  • Check your assessment period.
  • Check your payment schedule in your online account.
  • If in doubt, contact the DWP.

How to make the most of Universal Credit?

  • Update your status in a timely manner.
  • Check eligibility for other benefits too.
  • Seek financial advice (such as Citizens Advice).

Conclusion:

The June 2025 increase in Universal Credit will bring relief to millions of people. Although the 1.7% increase is not huge, this support will be vital for many families in the current economic situation. Make sure you understand your assessment period and the new rates thoroughly so that you can avail the full benefits of all your entitlements at the right time.

FAQs

Q1. What is the Universal Credit increase in June 2025?

A. The Universal Credit payments will rise by 1.7% starting June 2025, reflecting the latest inflation rate.

Q2. Who will benefit from this Universal Credit increase?

A. Millions of existing Universal Credit claimants across the UK will benefit, including families, disabled individuals, and carers.

Q3. When will the increased payments appear in my bank account?

A. The payment increase will appear depending on your Universal Credit assessment period—most claimants will see it in payments from late May or June.

Q4. Will additional Universal Credit elements increase too?

A. Yes, elements such as Limited Capability for Work and Work-Related Activity (LCWRA) and Carer’s Element will also see a 1.7% increase.

Q5. How can I check if my payment will increase?

A. You can review your Universal Credit online account or payment notices from the DWP to check your new payment rate.

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