When is Universal Credit going up? The new DWP payment rates in 2022

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  • People across the UK will be pleased to note that Universal Credit is going up in 2022 – alongside rises in the State Pension rate too.

    It started with the announcement of a reduction in the Universal Credit taper rate from chancellor Rishi Sunak in the Autumn Budget. And now a month on, there’s more good news for those claiming Universal Credit and other state benefits, with the DWP unveiling new and increased rates for the 2022/2023 financial year.

    It follows increases in both the new national minimum wage and the real living wage that will come into effect next year too.

    When is Universal Credit going up?

    Universal credit will increase by 3.1% on April 11, 2022.

    The Department of Work and Pensions (DWP) confirmed that a number of benefits – including Universal Credit – will go up in the 2022-2023 year. The change will apply to those on the scheme in Scotland, England, Wales and Northern Ireland.

    infographic showing when universal credit goes up

    Credit: Canva

    The new figures will see both single and joint claimant allowances increase by up to £15:

    Under 25s

    • Single: £265.31 (was £257.33 – increase of £7.98)
    • Couple: £416.45 (was £403.93 – increase of £12.52)

    Over 25s:

    • Single: £334.91 (was £324.84 – increase of £10.07)
    • Couple: £525.72 (was £509.91 – increase of £15.81)

    Child based universal credit will also go up for the next financial year. An allowance for a first child born before 6 April 2017 was £282.60. But it will increase to £290 next April (an additional £7.40).

    Meanwhile, a first or subsequent born child born after 6 April 2017 is entitled to £244.58 (up from £237.08 – a £7.50 increase).

    State Pension rise 2022:

    The DWP also announced that the State Pension will increase by 3.1% in 2022 for both full new and basic old pension plans.

    Those on the Full New State Pension will receive £185.15 (was £179.60 – increase of £5.55).

    Individuals collecting their Basic Old State Pension (A or B) will pick up £141.85 (was £137.60 – increase of £4.25).

    an infographic showing State pension 2022/2023 rates

    Credit: Canva

    Like the Universal Credit increase, the new pension rates will come into effect on April 11, 2022.

    There’s even more good news as well, with Pension Credits also increasing next year. This is extra money to help with living costs to those over pension age who are on a low income.

    Pension Credit rates 2022/2023:

    • Single: £182.60 (was £177.10)
    • Couple: £278.70 (was £270.30)

    Of their decision to increase pensions and benefits, the DWP said:

    “In taking this decision, the government carefully considered the fairest approach for both pensioners and younger taxpayers, many of whom have been hardest hit by the financial impacts of the pandemic.

    “In addition, last year, we delivered primary legislation to increase State Pensions by 2.5 per cent, when earnings fell and price inflation increased by half a percentage point. If we hadn’t taken this action, State Pensions would have been frozen.”

    What other benefits will increase in 2022/2023?

    The Universal Credit and State Pension increases are just two benefits changing next year – with rises also announced for disability, statutory sick and maternity/paternity allowances. We’ve shared some of the all-important changes coming into effect from April 11, 2022:

    Attendance Allowance

    Attendance Allowance helps pay for your personal care if you’ve reached State Pension age and are disabled.

    • Higher rate (2022): £92.40 (was £89.60)
    • Lower rate (2022): £61.85 (was £60.00)

    Carer’s Allowance

    Carer’s Allowance is applicable if you care for someone at least 35 hours a week and they get certain benefits. You do not have to be related to or live with them to receive this.

    • April 2022 rate: £69.70 (was £67.60)

    Disability Living Allowance

    A Disability Living Allowance for children is available – it is split into two categories. One based on money for personal care and another for mobility and getting around. Those who are disabled and aged over 16 should claim Personal Independence Payment (PIP) instead.

    Care Component

    • Highest (2022): £92.40 (was £89.60)
    • Middle (2022): £61.85 (was £60.00)
    • Lowest (2022): £24.45 (was £23.70)

    Mobility component

    • Higher (2022): £64.50 (was £62.55)
    • Lower (2022): £24.45 (was £23.70)

    Personal Independence Payment (PIP)

    Personal Independence Payment (PIP) can help with extra living costs if you have a long-term physical or mental health condition and difficulty with everyday tasks because of your condition. You must be aged 16 and over.

    Daily Living Component

    • Enhanced (2022): £92.40 (was £89.60)
    • Standard (2022): £61.85 (was £60.00)

    Mobility Component

    • Enhanced (2022): £64.50 (was £62.55)
    • Standard (2022): £24.45 (was £23.70)

    Housing Benefit

    Housing Benefit helps you pay rent if you’re unemployed, on a low income or currently claiming benefits. Though it is slowly being replaced by Universal Credit.

    • Under 25 (2022): £61.05 (was £59.20)
    • 25 or over (2022): £77.00 (was £74.70)

    Jobseeker’s Allowance (contributions or income-based)

    Jobseeker’s Allowance (JSA) helps you financially when you’re unemployed and looking for work. Though new claimants are unable to claim the existing JSA and will instead have to see if they’re eligible for the new Jobseeker’s Allowance.

    • Under 25 (2022): £61.05 (was £59.20)
    • 25 or over (2022): £77.00 (was £74.70)

    Statutory Sick Pay

    You can receive Statutory Sick Pay if you’re too ill to work. It’ll be paid by your employer for up to 28 weeks.

    • Standard rate (2022): £99.35 (was £96.35)

    Maternity/Paternity Allowance

    A Maternity or Paternity Allowance is what you can receive when taking time off to have a baby.

    • Standard rate (2022): £156.66 (was £151.97)

    Statutory Parental Bereavement Pay

    Parents can take time off work and receive Statutory Parental Bereavement Pay if their child dies before they turn 18. It also applies to someone who has a stillbirth after 24 weeks of pregnancy.

    • Standard rate (2022): £156.66 (was £151.97)

    Bereavement Support Allowance (previously Widow’s Pension)

    You could be entitled to Bereavement Support Payment if your partner has died in the last 21 months.

    • Standard rate: (2022) £126.35 (was £122.55)