Universal Credit and benefits increase coming into force from 6 April 2021

New rates for the main benefit as well as Jobseeker's Allowance and Personal Independent Payment come in at the start of the new tax year.

Benefit payments increased last April for the first rise in six years, increasing by 1.7% after an end to the benefit freeze.

And this year, many benefits will rise again from 6 April 2021.

Universal Credit claimants will also continue to benefit from a £20 a week uplift, which was introduced last year as a temporary measure to help people overcome the coronavirus crisis.

Chancellor Rishi Sunak then extended the boost for another six months in the Budget on March 3. Claimants will continue to get the extra cash until September, after which payments will then significantly drop from October.

Six million people are currently claiming Universal Credit and experts have warned they face mounting debts as the coronavirus crisis continues.

From April 6, Universal Credit payments will rise as follows for the 2021/2022 financial year.

How much you're entitled to depends on your individual circumstances, including your age, whether you have any disability and if you have children or are a carer.

Standard allowance (per month)

• For those single and aged under 25, the standard allowance will rise from £342.72 to £344
• For those single and aged 25 or over, the standard allowance will rise from £409.89 to £411.51
• For joint claimants both under 25, the standard allowance will rise from £488.59 to £490.60
• For joint claimants where one or both are 25 or over, the standard allowance will rise from £594.04 to £596.58

Extra amounts for children

• For those with a first child born before April 6, 2017, the extra amount is going up from £281.25 to £282.50
• For those with a child born on or after April 6, 2017 or second child and subsequent child, the extra amount is going up from £235.83 to £237.08
• For those with a disabled child, the lower rate addition payment is going up from £128.25 to £128.89 and the higher rate from £400.29 to £402.12

Extra amounts for limited capability for work

• For those deemed to have limited capability for work, the extra amount is going up from £128.25 to £128.89
• For those deemed to have limited capability for work or work-related activity, the extra amount is going up from £341.92 to £343.63

Extra amounts for being a carer

Universal Credit claimants can get an additional amount if you're caring for a severely disabled person for at least 35 hours a week.

The amount you get a month will rise from £162.92 to £163.73.

Changes to housing cost contributions in April

Non-dependants’ housing cost contributions are also going up from £75.15 to £75.53.

These contributions are deductions taken from your Universal Credit housing element for adults who live with you on an informal basis. For example, this could be a relative who doesn't pay rent. In most cases, the DWP expects a non-dependant adult household member to contribute to your rent.

Other deductions going up in April

Amounts can be taken out of your Universal Credit to pay back debt in council tax, energy or water bills, rent, court fines, compensation orders, or child maintenance.

For third party deductions where 5% of the standard allowance is taken, the amount is going up as follows:

• For those who are single and under 25, the deduction is going up from £12.80 to £12.87
• For those who are single and aged 25 or over, the deduction is going up from £16.16 to £16.24
• For joint claimants both under 25, the deduction is going up from £20.10 to £20.20
• For joint claimants where one or both are 25 or over, the deduction is going up from £25.37 to £25.50

For deductions to repay rent and service charges where a minimum 10% of the standard allowance is taken up to a maximum of 20%, the amounts are going up as follows:

• For those who are single and under 25, the minimum deduction is going up from £25.61 to £25.73 and the maximum deduction is going up from £51.21 to £51.47
• For those who are single and aged 25 or over, the minimum deduction is going up from £32.32 to £32.48 and the maximum deduction is going up from £64.64 to £64.97
• For joint claimants both under 25, the minimum deduction is going up from £40.19 to £40.39 and the maximum deduction is going up from £80.38 to £80.79
• For joint claimants where one or both are 25 or over, the minimum deduction is going up from £50.74 to £50.99 and the maximum deduction is going up from to £101.47 to £101.98

Fraud overpayments, recoverable hardship payments and administrative penalties will go up as follows (30% of the standard allowance):

• For those who are single and under 25, the amount deducted is going up from £76.82 to £77.20
• For those who are single and aged 25 or over, the amount deducted is going up from £96.97 to £97.45
• For joint claimants both under 25, the amount deducted is going up from £120.58 to £121.18
• For joint claimants where one or both are 25 or over, the amount deducted is going up from £152.21 to £152.97

For other overpayments, and civil penalties, the amounts taken will go up as follows (15% of the standard allowance)

• For those who are single and under 25, the amount deducted is going up from £38.41 to £38.60
• For those who are single and aged 25 or over, the amount deducted is going up from £48.48 to £48.73
• For joint claimants both under 25, the amount deducted is going up from £60.29 to £60.59
• For joint claimants where one or both are 25 or over, the amount deducted is going up from £76.11 to £76.49

Other benefits going up in April

Those still claiming benefits from the old system - known as legacy benefits - will also get slightly more money from April 6, 2021. Legacy benefits include jobseeker's allowance, employment and support allowance, income support and housing benefit.

You cannot make a new claim for these benefits anymore, but many people who have not yet moved to Universal Credit are still claiming them.