DWP Claimants Confront £1,000 Shortfall as April Increase Falls Short
Charities are raising alarms as upcoming benefit increases fail to meet essential living costs. Despite a rise in Universal Credit payments this April, many claimants will still experience financial hardship.
Details of the April Benefits Rise
The standard allowance for Universal Credit will increase by approximately 6.2% starting in April. This consists of a 2.3% rise mandated by the Universal Credit Act of 2025, in addition to a 3.8% increase based on September’s inflation rate.
Living Costs and Financial Shortfall
Nonetheless, experts assert that this increase falls short of what is needed for basic essentials. The Joseph Rowntree Foundation estimates that single individuals will receive about £98 per week. However, they argue that at least £120 per week is necessary for basic survival.
- Annual Shortfall for Singles: £1,000
- Weekly Payment for Couples: Approximately £154
- Annual Shortfall for Couples: Roughly £2,500
Couples, while receiving a higher payment, still face significant gaps compared to the estimated £205 needed each week for essential costs such as food and heating.
Impacts of Other Benefits
Other benefits, like disability support and the child element of Universal Credit, are projected to rise by 3.8%. However, experts warn that these increases may be quickly consumed by soaring rent and energy prices.
Households Affected by Payment Freezes
Approximately 600,000 households on transitional protection will see no increase due to frozen payments from their previous benefits, which were higher than their current Universal Credit entitlement. Charities are advocating for an Essentials Guarantee to ensure that Universal Credit payments always meet the basic costs of food and heating.
Government Response
The Department for Work and Pensions (DWP) claims it aims to transition individuals from welfare to secure employment. They maintain that keeping the main rate of Universal Credit above inflation is a crucial part of their broader Plan for Change.
As families brace for the upcoming April adjustments, the ongoing discussion around essential living costs and welfare support remains critical to many households facing financial uncertainty.
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