Millions claiming universal credit could be set for bumper pay increase next April

Thousands of people claiming universal credit could be set for a large pay increase from next April if payments are increased in line with inflation.

The Department of Work and Pensions (DWP) will confirm in November exactly how much benefits will increase by, but it’s expected claimants will receive 6.7% increase to match September’s inflation figures.

People claiming the following benefits will all see their payments rise:

• Universal credit
• Tax credits
• Attendance allowance
• Carer’s allowance
• Disability living allowance
• Incapacity benefit
• Industrial injuries benefit
• Personal independence payment (PIP)
• Severe disability allowance
• State pension

How much will universal credit go up by?

Currently a person claiming single credit who’s under the age of 25 gets £292.11 a month - a 6.7% increase will see this payment rise by £19.57 to £311.68. Meanwhile, those under 25 who live with a partner will see their payments grow to £393.45 a month – up by £24.71.

Those over 25 would see their support increase by £24.71 to £393.45 and payments to anyone with a cohabiting partner will increase to £617.60 a month.

However, experts are warning that Jeremy Hunt might use a lower benchmark, such as looking at the rate of inflation for next year which’ll be lower, to make savings for the treasury.