The latest data from the Department for Work and Pensions (DWP) reveals that by the end of January 2025, 7.5 million people were claiming Universal Credit, marking an increase of 1.1 million compared to January 2024. Starting in April, all Universal Credit claimants will be required to confirm any changes in their circumstances more frequently. This update comes in the wake of recent announcements by the government, including key adjustments to payment rates and further plans to reform the welfare system.
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Universal Credit Change to Confirm Circumstances More Frequently
The new policy, confirmed by Minister for Social Security and Disabilities, Sir Stephen Timms, comes in response to concerns raised by Labour MP Nadia Whittome. Whittome had inquired about the frequency of the “periodic redeclaration of circumstances,” which will now be required every six months, starting in April 2025.
This change will affect all Universal Credit claimants, including those who are employed, unemployed, or self-employed. The DWP has stated that claimants will be prompted to confirm if their circumstances have changed in a way that could impact their claims. These changes will be processed and verified as usual, with the rollout of this initiative beginning in April. Testing will determine the frequency of such checks in the future.
New Universal Credit Payment Rates and Deductions
In addition to the procedural changes, Universal Credit claimants will see a 1.7% increase in their monthly payments starting next month. This adjustment, effective from April 2025, will provide a financial boost to individuals and families, with new payment rates as follows:
- Single claimants:
- Under 25: £316.98 (up from £311.63)
- 25 or over: £400.14 (up from £393.45)
- Couples:
- Both under 25: £497.55 (up from £489.23)
- One or both 25 or over: £628.10 (up from £617.60)
Furthermore, third-party deductions, which were previously set at 25%, will drop to 15% starting on April 7. These changes aim to ease financial strain on households, ensuring that claimants receive more of their entitled benefits.
Increased Support for People with Health Conditions
For those who face challenges related to health or disability, the DWP is introducing additional support as part of their ongoing commitment to helping vulnerable individuals thrive in the workforce. A significant portion of the reforms will focus on providing tailored assistance to people with fluctuating or invisible health conditions, such as fibromyalgia, ADHD, and other neurodivergent conditions.
Minister for Employment Alison McGovern emphasized the government’s push to support individuals with invisible disabilities by improving access to employment services, including Work Coaches, Disability Employment Advisers, and Access to Work grants. This initiative is part of the wider “Get Britain Working White Paper” and aims to reduce economic inactivity while fostering an environment where people with disabilities or health conditions can find meaningful employment.
Additionally, the government is also exploring how they can create a more inclusive workplace, focusing on neurodiversity. This includes an expansion of support to ensure that people with conditions like autism and ADHD are not left behind in the workforce.
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Reforming the Welfare System for the Future
As part of broader welfare system reforms, the DWP has signaled its intention to make additional announcements before the Spring Statement on March 26. These changes will aim to further assist claimants in securing long-term employment and reducing reliance on welfare benefits.
The number of claimants in the “no work requirements” conditionality group has grown to 3.1 million, outpacing those in the “searching for work” category since April 2022. This shift highlights the growing number of people who are unable to work due to illness or disability, further stressing the need for a more inclusive approach to welfare and employment support.
Looking Ahead
These upcoming changes to Universal Credit and welfare reform initiatives reflect the government’s ongoing efforts to tackle issues of economic inactivity and support a diverse population of workers. As we approach April 2025, claimants should be prepared for the new requirements and benefit updates that will impact their financial situation.
For those on Universal Credit, it’s a time of significant change, and staying informed about these updates will be crucial in ensuring that individuals receive the full support they need. As the DWP continues its work on improving the system, it’s clear that a more frequent check-in on claimants’ circumstances will help streamline the process and improve efficiency.
With these updates, the government is taking steps to refine the welfare system, ensuring that more people receive the support they need, particularly those with health challenges or disabilities. Keep an eye out for more information about upcoming reforms as the DWP moves forward with these critical changes.
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