Universal credit, along with many other benefits, will go up next month as the 2022/23 tax year begins.
From April 6, the standard rate of DWP universal credit for a single person aged 25 or over will be £334.91 per month. That's a little over £10 more per month than the current rate - an increase of 3.1 per cent.
For a single person aged under 25, the monthly amount will go from £257.33 to £265.31. That's also a rise of 3.1 per cent.
Read more - DWP: Universal credit, pension, Pip, and more benefits you could be entitled to as cost of living bites
That rate of increase - 3.1 per cent - is so because that was the rate of inflation in September, when the decisions were taken. However, that same measure of inflation has since increased to 5.5 per cent for January, and it's predicted to reach 7.25 per cent in April.
That means the cost of living will be approximately 7.25 per cent higher in April 2022 than it was in April 2021. The government has not yet announced any change to its plans to increase the universal credit uplift; in fact, universal credit was controversially cut by £20 per week per person from October last year.
The Child Poverty Action Group says the discrepancy between the universal increase and the increasing cost of living means a family on universal credit will be £570 per year worse off, on average. The group is calling for the government to raise benefits by seven per cent in April, rather than 3.1 per cent, so they can keep up with inflation.
READ MORE: Five tips to keep your energy bills down as prices soar
April will also see the amount we all pay in national insurance contributions increase, while energy bills are set to rise by 54 per cent at the same time. In addition, income tax bands are being frozen, meaning we'll all pay more in income tax, once inflation is taken into account.
You can read all the new universal credit rates for the 2022/23 tax year below, via the government website. Remember the amount you can get from universal credit greatly depends on your individual circumstances - use a benefit calculator to help.
- Minimum amount
| Universal Credit minimum amount | Rates 2021 to 2022 (£) | Rates 2022 to 2023 (£) |
|---|---|---|
| Universal Credit minimum amount | 0.01 | 0.01 |
- Standard allowance Single
| Universal Credit amounts | Rates 2021 to 2022 (£) | Rates 2022 to 2023 (£) |
|---|---|---|
| Single under 25 | 257.33 | 265.31 |
| Single 25 or over | 324.84 | 334.91 |
- Couple
| Universal Credit amounts | Rates 2021 to 2022 (£) | Rates 2022 to 2023 (£) |
|---|---|---|
| Joint claimants both under 25 | 403.93 | 416.45 |
| Joint claimants, one or both 25 or over | 509.91 | 525.72 |
- Child amounts
| Universal Credit amounts |
Rates 2021 to 2022 (£) |
Rates 2022 to 2023 (£) |
|---|---|---|
| First child (born prior to 6 April 2017) |
282.50 |
290.00 |
| First child (born on or after 6 April 2017) or second child and subsequent child (where an exception or transitional provision applies) |
|
|
Read more: Five tips for saving petrol and diesel as prices hit record high
Read more: DWP benefit claimants can get £15 fibre broadband from BT and Virgin - here's how
Read more: Cheapest mobile phone networks and tariffs - starting from just £7 a month
