In the coming days, significant changes are set to affect Universal Credit payments in the UK. These updates aim to adjust the benefits system to better support those in need, amidst ongoing economic challenges and the rising cost of living. Here’s what you need to know about these changes:

Major Changes to Universal Credit Payments Coming Soon

Increased Payment Rates

Starting in April 2024, Universal Credit payments will see an increase. For individuals under 25, the monthly standard allowance will rise from £292.11 to £311.68. Those over 25 will see their payments increase from £368.74 to £393.45. Couples under 25 will receive £489.23, up from £458.51, while couples over 25 will see their allowance rise from £578.82 to £617.60​​.
Adjustments to the Administrative Earnings Threshold

One notable change is the adjustment to the Administrative Earnings Threshold (AET). From May 2024, individuals on Universal Credit who are deemed fit to work must now earn at least £892 per month, which equates to 18 hours of work per week at the national living wage. For couples, the threshold is set at £1,437 per month, translating to 29 hours per week​.

Impact on Work Requirements

As a result of these changes, approximately 180,000 Universal Credit recipients will need to look for additional work if they are currently working fewer than 18 hours per week. This adjustment aims to encourage more people to increase their work hours and income​​.

Cost of Living Support

Despite the increase in Universal Credit payments, the cost of living remains a pressing issue for many. The final installment of the £900 cost of living payment is expected by May 2024, providing additional financial support to eligible households. This payment is part of a broader initiative to help mitigate the impact of rising prices on low-income families​.

Transition from Legacy Benefits

The Department for Work and Pensions (DWP) has also announced that six ‘legacy benefits’ will be replaced by Universal Credit. This transition will affect around 500,000 claimants, who will soon need to take action to ensure their benefits continue without interruption​.

Additional Financial Support Options

Besides the changes to Universal Credit, several other support mechanisms are available:

Household Support Fund: Extended beyond its initial deadline, this fund allows local councils to offer various forms of support, including cash grants and supermarket vouchers​.


Budgeting Advance Loans: For those facing an emergency lack of funds, these interest-free loans are available with an extended repayment period of two years​.


Charitable Grants: Various grants are available for people in specific circumstances, such as disability or unemployment. Tools like the Turn2us grants search can help identify potential support​​.


Energy Bill Assistance: Energy providers like British Gas, EDF, and others offer grants and support for those struggling with their energy bills​​.
How to Prepare

To navigate these changes effectively, it's crucial to stay informed and take timely action. Check your eligibility for increased payments, understand the new work requirements, and explore additional support options available through local councils and charities.