People receiving Universal Credit should get more money in their payments starting from May or June, depending on when their last assessment period was. Some could see increases as high as 6.1%.
It comes after the DWP benefit rates were increased in April. However, because of the ‘first full period’ rule, Universal Credit claimants usually only get the increase applied to their payments in May at the earliest, and even June in some cases.
Each year, benefit rates are increased on April 6, the beginning of the new tax year. For most other benefits, this increase will be seen in the very next payment claimants get.
The first full period rule requires claimants have a full assessment period starting after the new rates have began before they will be eligible for the higher amounts. Each assessment period usually runs for four weeks, with payments made a week after this concludes.
View 3 ImagesThe first full period rule requires claimants to have a full assessment period after the rise is implemented(Image: GETT)
This means that those who had an assessment period start just before the new rates were implemented will likely only get the increase in June. Those who had assessment periods starting after April 7 will get the increase earlier.
Turn2Us, a website that writes about benefits, said: “For many benefits, the new rates will take effect from 7 April. However, for some Universal Credit claimants, increased rates will take effect around June. This is because The new rate won’t be paid until the first assessment period that begins on or after 7 April.”
For example, if Sarah’s assessment period starts on April 4th, it will end on May 3th and her payment will be due around May 10th. This payment will still have the old rates because her assessment period started before the new rates began on April 6th.
View 3 ImagesUniversal Credit payments will be increasing this month after the April rates rise(Image: GETTY)
Her next assessment period will start on May 4th and end on June 3rd, with the payment made around June 10th. This payment will have the new, higher rate because this will be her first full assessment period after the rate rises have started.
On the other hand, Jack who had an assessment period start on April 8th, ending on May 7th, would receive the higher rates in his payment around May 14th, nearly a month before Sarah gets the increase, because his assessment period started after the new rates began.
A number of other changes starting in April will also affect Universal Credit claimants going forward, including an extra increase. Usually, DWP benefits are increased by the rate of inflation, which was 3.8% when measured for the 2026/2027 increase.
View 3 ImagesUniversal Credit claimants will see their payments increasing over the next few weeks(Image: GETTY)
However, Universal Credit will also be getting an additional 2.3% increase to the standard rate, making for a total standard rate increase of around 6.1%. The change is meant to ‘rebalance’ Universal Credit rates.
Parliamentary papers explain that the change can do this “by increasing the basic standard allowance that all claimants receive, while reducing the additional payments for most claimants newly found to have disabilities and health conditions that affect their capability for work”.
Article continues below
It is expected that by 2029/2030, the Universal Credit standard allowance will be 4.8% higher due to this change than it would have been under the normal rules.