Universal Credit Increase July 2024 – What is the Expected Rise Next Month?

By Ehsteem Arif

Published on:

Keir Starmer

The Department for Work and Pensions (DWP) has confirmed an increase in Universal Credit payments for UK households starting in April 2024. This adjustment aligns with the September 2023 Consumer Prices Index (CPI) rate of inflation, reflecting a 6.7% rise. This article cuts into the significance, details, and implications of the Universal Credit increase for 2024.

Significance of the Increase

As of October 2023, over 6.2 million individuals claim Universal Credit in the UK, including 172,000 in Birmingham. The increase will vary based on individual circumstances, such as whether the claim is single or combined, or if there are children involved. Currently, the average monthly Universal Credit payout ranges from £630 to £1,140.


Historically, benefit payouts increase in April each year, based on the inflation rate from the preceding September. With a 6.7% inflation rate in September 2023, claimants can expect a similar rise in their benefits starting April 2024. This increase translates to a monthly rise of approximately £25 for individuals on Universal Credit.

2024 Increase

Universal Credit Increase 2024
CountryUnited Kingdom
Provided ByDWP
Increase Rate 20246.7%
Adjusted According toInflation and Cost of Living
More InformationRead Here

Expected Increase in 2024

The Chancellor announced the annual increase in his Autumn Statement. Benefits, including Universal Credit, will rise by 6.7% in line with the September Consumer Price Index. Initially, it was anticipated that the increase would be based on October’s CPI, but the decision was made to use the September rate.


The Treasury estimates that in 2024–2025, 5.5 million Universal Credit households will gain an average of £470 annually. However, research from the New Economics Foundation suggests that despite the increase, individuals on Universal Credit may be up to £670 worse off due to rising living costs.

Breakdown of the Increase

  • Under 25: Current allowance is £292.11 per month. A 6.7% increase will bring it to £311.68, an increase of £19.57.
  • Over 25: Current allowance is £368.74 per month. A 6.7% increase will bring it to £393.45, an increase of £24.71.


  • Both under 25: Current allowance is £458.51 per month. A 6.7% increase will bring it to £489.23, an increase of £30.72.
  • Both over 25: Current allowance is £578.82 per month. A 6.7% increase will bring it to £617.60, an increase of £38.78.

In addition to the standard allowance, individuals may receive additional amounts based on their specific circumstances.


The Universal Credit increase aims to help around 5.5 million families, with an estimated average annual gain of £470. However, despite the nominal rise, some analysts argue that this increase may effectively be a reduction, as it may not keep pace with rising living costs. Inflation at 6.7% adds to the financial burden on households, which may negate the benefits of the increase.

Thank you for choosing our portal to learn about the Universal Credit Increase 2024. We hope this information has been valuable.



What is the 2024 Universal Credit increase rate?

When does the increase take effect?

The increase starts in April 2024.


How much will single claimants under 25 receive?

They will receive £311.68 per month.

How much will couples over 25 receive?

They will receive £617.60 per month.


Will the increase keep up with living costs?

Analysts predict it may not fully offset rising living costs.


Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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