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From April, millions of individuals on Universal Credit are set to receive additional amounts. The confirmed payment rates for 2025/2026 indicate that due to a 1.7 per cent increase in
benefit payments, a typical low-income family could see an extra £253 in their Universal Credit next year. However, using the October inflation measure instead of September's would have
added another £74 to this. Over a million claimants will experience a separate boost as debt deductions are capped at a new level of 15 per cent, down from the current 25 per cent, under a
new Fair Repayment Rate policy starting in April. This change is expected to benefit 1.2 million families, including 700,000 with children, meaning some of the poorest households could be
£420 better off. Save the Children estimates that single parents could receive up to £39 more of their Universal Credit entitlement each month, and for two-parent families, this could be up
to £62. READ MORE: DWP COLD WEATHER PAYMENTS LATEST Currently, there are 7.3 million people on Universal Credit, with numbers rapidly increasing due to people transitioning from legacy
benefits such as tax credits and Income Support, which are being phased out. Tax credits are scheduled to be abolished this April, and other old-style benefits will be phased out over the
following year. Nearly three million Universal Credit claimants are not required to work, a figure the Labour Government hopes to tackle with its Get Britain Working plan and upcoming
reforms to health and disability benefits. The total number on Universal Credit includes 215,000 claimants in Birmingham, of whom 64,000 are in employment, and the other 151,000 are either
looking for a job or are written off from working on medical grounds, reports Birmingham Live. Below we have listed all the new Universal Credit payment rates to come into effect this April,
including the various elements you may be entitled to receive and any deductions that could be applied. Although the new rates will kick in on Monday, April 7, you will need a full
one-month assessment period starting on or after that date in order to see the higher amounts. The first claimants to enjoy the increases will be those paid on May 13 after an assessment
period spanning April 7 to May 6. Others will see their higher payments arrive later in May or in June. Universal Credit payment rates 2025/2026 All amounts are per month, as Universal
Credit is a monthly benefit paid to a claimant on the same date their first payment arrived. Standard allowance Single under 25: increasing from £311.68 to £316.98 Single 25 or over:
increasing from £393.45 to £400.14 Couple with both under 25: increasing from £489.23 to £497.55 Couple with one or both 25 or over: increasing from £617.60 to £628.10 Child amounts. The
first child (born prior to April 6, 2017) will see an increase from £333.33 to £339.00. The first child (born on or after April 6, 2017) / second child and subsequent child (where an
exception or transitional provision applies) will increase from £287.92 to £292.81. Disabled child additions will also see a change with the lower rate addition increasing from £156.11 to
£158.76 and the higher rate addition increasing from £487.58 to £495.87. Incapacity payments will also be affected with the Limited Capability for Work (LCW) amount increasing from £156.11
to £158.76 (only payable for claims before April 2017) and the Limited Capability for Work and Work-Related Activity (LCWRA) amount increasing from £416.19 to £423.27. The Carer element will
increase from £198.31 to £201.68 (Note that if you also claim the separate benefit Carer's Allowance, the equivalent monthly amount will be deducted). Other allowances and deductions
include childcare costs you can claim back with the maximum for one child increasing from £1014.63 to £1031.88 and the maximum for two or more children increasing from £1739.37 to £1768.94.
Non-dependants' housing cost contributions, which is a deduction for having another person in the household who is expected to contribute towards bills, will increase from £91.47 to
£93.02. Work allowances you can earn before deductions will also change with the higher work allowance (no housing amount) – one or more dependent children or limited capability for work
increasing from £673 to £684 and the lower work allowance – one or more dependent children or limited capability for work increasing from £404 to £411.00. The Universal Credit (UC) daily
reduction rates are set to change. For those under 25, the 100% reduction rate will increase from £10.20 to £10.40, while for those 25 or over, it will rise from £12.90 to £13.10. Joint
claimants both under 25 will see an increase from £8 to £8.10 per sanctioned claimant. If one or both joint claimants are 25 or over and one is sanctioned, the rate will increase from £10.10
to £10.30 per sanctioned claimant. The 40% reduction rate will also increase from £4 to £4.10 for single claimants under 25 and from £5.10 to £5.20 for those 25 or over. However, the rate
will remain the same at £3.20 for joint claimants both under 25 and at £4 for joint claimants where one or both are 25 or over. Payments of arrears – Third Party Deductions at 5% of UC
Standard Allowance (excluding deductions for rent and service charges included in rent) will also see changes. For single claimants under 25, this will increase from £15.58 to £15.85, and
for those 25 or over, it will rise from £19.67 to £20.01. Joint claimants both under 25 will see an increase from £24.46 to £24.88, while for joint claimants where one or both are 25 or
over, the rate will increase from £30.88 to £31.41. Minimum deductions for rent and service charges included in rent at 10% of UC Standard Allowance (a minimum introduced from November 2014)
will also increase. For single claimants under 25, this will rise from £31.17 to £31.70, and for those 25 or over, it will increase from £39.35 to £40.01. Joint claimants both under 25 will
see an increase from £48.92 to £49.76, while for joint claimants where one or both are 25 or over, the rate will rise from £61.76 to £62.81. The maximum deductions for rent and service
charges included in rent will be reduced to 15 per cent of the Universal Credit (UC) standard allowance, down from the previous 20 per cent. This means that for a single person under 25, the
deduction will decrease from £62.34 to £47.55. For a single person aged 25 or over, it will drop from £78.69 to £60.02. Joint claimants both under 25 will see a decrease from £97.85 to
£74.63, while joint claimants where one or both are 25 or over will see a reduction from £123.52 to £94.22. The overall maximum deduction rate will also be set at 15 per cent of the UC
standard allowance, down from the previous 25 per cent. This results in similar decreases across all categories. Fraud overpayments, recoverable hardship payments and administrative
penalties will also be set at 15 per cent of the UC standard allowance, down from the previous 25 per cent, resulting in similar decreases. Ordinary overpayments and civil penalties will
increase slightly to 15 per cent of the UC standard allowance, with amounts increasing marginally across all categories. Ordinary Overpayments and Civil Penalties will now be at 15 per cent
of UC Standard Allowance if a claimant's or their partner's earnings exceed the Work Allowance, down from the previous 25 per cent. For single individuals under 25, this means a
decrease from £77.92 to £47.55, while those 25 or over will see a reduction from £98.36 to £60.02. Joint claimants both under 25 will experience a decrease from £122.31 to £74.63, and for
joint claimants where one or both are 25 or over, the decrease is from £154.40 to £94.22. Transitional disability elements for those moving across from legacy benefits will see an increase.
The Transitional SDP (Severe Disability Premium) element will increase from £140.97 to £143.37 if the LCWRA element is included in the award, and from £334.81 to £340.50 if it is not. For
joint claimants and higher SDP rate payable, the increase is from £475.79 to £483.88. Additional amounts for EDP (Enhanced Disability Premium) will increase from £89.63 to £91.15 for
singles, and from £128.04 to £130.22 for couples. Additional amounts for DP (Disability Premium) will increase from £183.52 to £186.64 for singles, and from £262.48 to £266.94 for couples.
Additional amounts for disabled children will increase from £188.86 to £192.07. Child Maintenance Deduction will remain the same at £36.40, as will the upper capital limit at £16,000. The
amount disregarded will remain the same at £6,000. The assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit, will also stay the same
at £4.35.