Good News for Parents on Universal Credit: More Financial Support Coming in April 2025
Universal Credit families are apt to benefit from a little extra financial relief this year. The Department for Work and Pensions has announced increases in payments effective from April 2025 and, in particular, targeted at families with children and childcare costs.
The changes aim to counteract inflation and the rising costs of living. Now let us discuss how these updates might be to your- and your family’s- advantage.
Boost in Payments for Children
From April 2025, payments related to children under Universal Credit will see a 1.7% increase. This means families will receive better financial support to help with the cost of raising children.
What’s Changing?
- First or only child born before April 6, 2017: Monthly payments will increase from £333.33 to £339.
- Additional children born after April 6, 2017: Payments will rise from £287.92 to £292.81.
This increase will come as a much-needed relief for parents juggling the financial pressures of inflation and day-to-day expenses.
Extra Support for Families with Disabled Children
Families raising children with disabilities will see significant benefits, as payments under Disability Living Allowance (DLA) or Personal Independence Payment (PIP) will also go up.
- Higher disability rate: Monthly payments will increase from £487.58 to £495.87.
- Lower disability rate: Monthly payments will rise from £156.11 to £158.76.
Why This Matters
Unique challenges to raising a child with a disability include medical costs required by therapy and specialized care. This support assists families in relieving some burdens at the same time that it provides additional stability.
Childcare Costs: A Godsend for Working Parents
For working parents, childcare costs under Universal Credit are being raised by the DWP. Under these proposals, families are now able to claim up to 85% of their childcare costs, relieving the pressure of working while caring for their children.
| Childcare Costs | Previous Maximum | New Maximum |
|---|---|---|
| One child | £1,014.63 | £1,031.88 |
| Two or more children | £1,739.37 | £1,768.94 |
New Maximum Childcare Payments
Parents can now claim higher maximum payments for childcare expenses, which will make staying in the workforce more affordable and manageable.
Additional Financial Assistance
Beyond these increases, some Universal Credit claimants could qualify for an extra £750 in financial support.
- It’s important to check your eligibility to ensure you don’t miss out on any potential benefits.
- Meanwhile, discussions around compensating Waspi women continue to put additional pressure on DWP payments.
What You Should Do Next
If you’re unsure about how these changes apply to you, here are a few steps to get started:
- Log in to your Universal Credit account to view updates about your payments.
- Visit your local Jobcentre if you have questions or need assistance.
- Keep an eye out for DWP communications regarding changes to your benefits.
How This Helps Your Family
These updates are heartening gestures from the government, aimed at truly assisting families grappling with increasing costs of living, child care costs, and added difficulties in raising children with disabilities.
This monetary assistance is a relief and allows time to be spent on what really counts: time with family and working toward the goals that lie ahead.
FAQs
What flexibility is being added to Universal Credit assessments?
The new plan introduces relaxed assessment rules, ensuring parents have more time and flexibility to meet benefit requirements without penalties.
Are there any eligibility changes for parents on Universal Credit?
Eligibility criteria for parents may be adjusted to make benefits more accessible for working families or those with childcare responsibilities.
Do the changes affect single parents differently?
Single parents will benefit significantly, as the updates aim to address challenges they face, such as childcare costs and work flexibility.
