Published On: Mon, Nov 4th, 2019

Universal Credit will rise in 2020 – increase confirmed as benefits freeze ends | Personal Finance | Finance


The benefits freeze is to end in April next year, the Government has confirmed, meaning Universal Credit will rise by 1.7 per cent in line with inflation. The freeze was announced in the 2015 Budget by Conservative former Chancellor George Osborne, and was intended to last until the end of the current financial year.

“Our balanced fiscal approach has built a strong economy, with 3.6 million more people in work since 2010.

“And it’s that strong economy which allows us to bolster the welfare safety net by increasing benefit payments for working-age claimants now.”

More than 2.5 million people on Universal Credit are set to receive more money, as well as claimants on legacy benefits

According to the DWP, the Universal Credit standard allowance for couples aged over 25 are set to receive £100 more per year.

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How much is current standard allowance?

A Universal Credit payment is made up of a standard allowance, in addition to any extra amount which may be available to a person due to their personal circumstances.

The monthly standard allowance for a single person who is under 25 is currently £251.77.

This rises to £317.82 if a single person is aged 25 or older.

Those in a couple in which both partners are under 25 can get £395.20 for both.

Should one person in the couple be aged 25 or older, this is instead £498.89.

While the benefits freeze may be ending, an analysis by the Resolution Foundation has found that freeze has left the average couple with children, who are in the lower half of the income distribution, £580 per year worse off.

Adam Corlett, Senior Economic Analyst at the Resolution Foundation, said last month: “This is their first cash increase in five years.

“But while the benefit freeze is over, its impact is here to stay with a lower income couple with kids £580 a year worse off as a result.

“And because benefits will only keep pace with rising prices, the social security safety net will continue to erode – falling further behind earnings and the state pension.

“With children born today facing the highest risk of poverty in 60 years, it’s time the main parties rethought their approach to welfare, and reprioritised their efforts towards supporting low and middle income families.”

Meanwhile, the state pension is set to rise by 3.9 percent next year, under the triple lock.



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