Universal credit rate 2021 – by how much and are payments increasing or decreasing?

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Millions of people have had to rely on state aid like Universal Credit during the coronavirus pandemic.

Those who have lost their jobs, gone to reduced hours or reduced pay, been on leave, have seen their own businesses suffer, or are unable to claim statutory sick pay have turned to the DWP for help. ugly.

And with more and more people new to social assistance, there are always questions about how it works and how much you can get.

Applicants will need to know the universal credit rates for 2021 and what will change when the new fiscal year begins on April 6.

The standard universal credit allocation will increase this year. However, if the coronavirus top-up is removed, it will end up being a lower overall amount.

No decision has yet been made on whether or not to extend this temporary boost – £ 1,040 per year, the equivalent of £ 80 per month or £ 20 per week.

Chancellor Rishi Sunak’s budget on March 3 is expected to give further clues as to whether the increase will continue, if a one-time payment replaces it or if it is scrapped with nothing new in its place.

Universal Credit Rate 2021

Standard allowances

  • For singles and under 25, the standard monthly allowance will increase from £ 256.05 to £ 257.33 But that will be lower than the £ 342.72 amount for 2020, which includes the coronavirus boost.
  • For singles aged 25 or over, the standard monthly allowance will increase from £ 323.22 to £ 324.84. But that will be lower than the £ 409.89 amount for 2020, which includes the coronavirus boost.
  • For joint applicants under 25, the standard monthly allowance will increase from £ 401.92 to £ 403.93 But that will be lower than the 2020 amount of £ 488.59. which includes the coronavirus boost.
  • For joint applicants one or both of whom are 25 years or older, the standard monthly allowance will increase from £ 507.37 to £ 509.91 But that will be lower than the 2020 amount of £ 594.04. which includes the coronavirus boost.

Additional amounts for children

  • For those with a first child born before April 6, 2017, the additional amount drops from £ 281.25 to £ 282.50
  • For those with one child (born on or after April 6, 2017) or a second and subsequent child (where an exception or transitional provision applies), the additional amount increases from £ 235.83 to £ 237.08
  • For people with a disabled child, the lower rate of the additional payment is increased from £ 128.25 to £ 128.89 and the higher rate of £ 400.29 at £ 402.12

Additional amount for limited working capacity

  • For people considered to have limited working capacity, the additional amount increases from £ 128.25 to £ 128.89
  • For those considered to have limited capacity for work or a work-related activity, the additional amount increases from £ 341.92 to £ 343.63

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Additional amounts for childcare expenses

People on UC who need help with childcare costs can recover up to 85 percent:

  • For people in UC with a child, the maximum amount granted for childcare costs remains the same at £ 646.35
  • For people in UC with two or more children, the maximum amount granted for childcare costs remains the same at £ 1,108.04

Additional amount to be a caregiver

  • If you are on UC and provide care for at least 35 hours per week to a severely disabled person who is receiving a disability benefit, the additional amount you receive in your UC increases from £ 162.92 to £ 163.73

Housing costs

  • Contributions to housing costs for non-dependent people go from £ 75.15 to £ 75.53 (this is the amount withdrawn from your CU)

Work allowance

  • The higher work allowance (no housing amount) for a UC claimant with one or more dependent children or limited working capacity is increased from £ 512 to £ 515
  • The lower working allowance for a UC claimant with one or more dependent children or limited working capacity is increased from £ 292 to £ 293

Deductions

Amounts can be taken from your universal credit to pay off arrears owed on municipal taxes, energy or water bills, rent, court fines, compensation orders, or child support.

For third party deductions where five percent of the standard allowance is taken, the amount increases as follows:

  • For singles and under 25s the deduction goes from £ 12.80 to £ 12.87
  • For those who are single and aged 25 or over, the deduction increases from £ 16.16 to £ 16.24
  • For joint applicants under 25, the deduction is increased from £ 20.10 to £ 20.20
  • For joint applicants one or both of whom are 25 years or older, the deduction increases from £ 25.37 to £ 25.50

The deductions for paying the fines remain the same at £ 108.35

Child support deductions remain the same at £ 36.40

For deductions intended to reimburse rent and rental charges where a minimum of 10 percent of the flat-rate allowance is taken up to a maximum of 20 percent, the amounts increase as follows:

  • For those who are single and under 25, the minimum deduction increases from £ 25.61 to £ 25.73 and the maximum deduction goes from £ 51.21 to £ 51.47
  • For those who are single and aged 25 or over, the minimum deduction increases from £ 32.32 to £ 32.48 and the maximum deduction goes from £ 64.64 to £ 64.97
  • For joint applicants under 25, the minimum deduction is increased from £ 40.19 to £ 40.39 and the maximum deduction goes from £ 80.38 to £ 80.79
  • For joint applicants one or both of whom are 25 years or older, the minimum deduction increases from £ 50.74 to £ 50.99 and the maximum deduction increases from £ 101.47 to £ 101.98

Fraudulent overpayments, recoverable hardship payments and administrative penalties will increase as follows:

  • For singles and under 25s the amount deducted increases from £ 76.82 to £ 77.20
  • For those who are single and aged 25 or over, the amount deducted increases from £ 96.97 to £ 97.45
  • For joint applicants under 25, the amount deducted increases from £ 120.58 to £ 121.18
  • For joint applicants one or both of whom are 25 years of age or older, the amount deducted increases from £ 152.21 to £ 152.97

For other overpayments, and civil penalties, the amounts withdrawn will increase as follows:

  • For singles and under 25s the amount deducted increases from £ 38.41 to £ 38.60
  • For those who are single and aged 25 or over, the amount deducted increases from £ 48.48 to £ 48.73
  • For joint applicants under 25, the amount deducted increases from £ 60.29 to £ 60.59
  • For joint applicants one or both of whom are 25 years or older, the amount deducted increases from £ 76.11 to £ 76.49

For all 2020/2021 benefit rates including PIP and State Pension, see our full guide here

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