Universal Credit Rates 2023 | What You’re Eligible For

Universal Credit is a means-tested benefit to help people with living costs who are either on a low income, out of work or unable to work (this includes carers). In April 2023, Universal Credit rates rose by 10.1% in line with inflation, as did other means-tested benefits such as Personal Independence Payment and Carer’s Allowance.

The average UK family on Universal Credit will now receive an extra £600 between April 2023 and March 2024. The benefit cap has also risen, so you can receive more in total.

Here, we’ve highlighted the Universal Credit rates for 2023/2024, along with how much they’ve increased, whether you’re eligible, how to apply and how you’ll be paid.

In this article:

1. Universal Credit rates for 2023/2024
2. How much have Universal Credit rates increased in 2023?
3. Are you eligible for Universal Credit?
4. How to apply for Universal Credit
5. How is Universal Credit paid?

Universal Credit Rates For 2023/2024

Universal Credit is a single payment, comprised of smaller amounts. How much you get depends on your personal circumstances, such as your earnings (if you’re working), your partner’s earnings (if they’re working) and any other income your household earns.

The 2023/2024 Universal Credit basic standard allowance for people over 25 is now worth £368.74 per month if you’re single and £578.82 per month if you’re in a couple.

If you’re under 25, this allowance is now worth £292.11 per month if you’re single and £458.51 per month if you’re in a couple.

Below, we’ve listed all the Universal Credit rates for 2023/2024, along with how much they’ve increased.

Universal Credit standard allowance

Child amounts

If you’re responsible for a child (or children) who usually live with you.

Disabled child additions

You may receive extra if your dependent child is disabled. Whether you qualify for the higher or lower rate depends on which benefits your child is entitled to.

Childcare costs

Universal Credit can also help you with the cost of childcare, regardless of how many hours you work.

Limited Capability for Work

If you have a medical condition or illness that prevents you from working, but you may be able to work in the future.

There’s also a separate amount if you’ve been assessed as having a ‘limited capability for work and work-related activity’.

Carer amount

You’re eligible for the carer’s element of Universal Credit if you provide at least 35 hours of unpaid care per week for somebody who receives a disability benefit, such as Attendance Allowance, Disability Living Allowance (the middle or highest rate) or Personal Independence Payment (the daily living component).

You don’t have to claim Carer’s Allowance to be eligible for this element.

Non-dependants housing cost contributions

A housing cost contribution is deducted from the housing costs element of Universal Credit when a non-dependant lives with somebody who claims Universal Credit.

Work allowances

This is an amount you can earn before your Universal Credit payment is affected. You’ll be eligible if you (and/or your partner) are responsible for a child, or have a ‘limited capability for work’.

How Much Have Universal Credit Rates Increased In 2023?

In April 2023, Universal Credit rose by 10.1%, in line with inflation. This increase applied to all means-tested benefits from HMRC and the DWP (Department for Work and Pensions).

This resulted in the following increases to the standard allowance Universal Credit rates per month and year for 2023:

• If you’re single and under 25 = £26.80 monthly and £321.60 annually
• If you’re single and 25 or over = £33.83 monthly and £405.96 annually
• If you’re in a couple and are both under 25 = £42.06 monthly and £504.72 annually
• If you’re in a couple and one or both of you are 25 or over = £53.10 monthly and £637.20 annually

Are You Eligible For Universal Credit?

Universal Credit is aimed at people on a low income, along with those who need some extra help with the cost of living. You may be:

• Unemployed
• Unable to work because of a medical condition, illness or disability
• Working (including self-employed and part-time work)
• An unpaid carer

To be eligible for Universal Credit, you must:

• Live in the UK
• Be aged 18 or over (there are certain exceptions for people aged 16 or 17)
• Be under the State Pension age
• Have £16,000 or less (including any savings and investments you have)

Universal Credit is gradually the following benefits:

• Child Tax Credit
• Housing Benefit
• Income Support
• Income-based Jobseeker’s Allowance (JSA)
• Income-related Employment and Support Allowance (ESA)
• Working Tax Credit

How To Apply For Universal Credit

You can either apply for Universal Credit online or by calling the Universal Credit helpline on 0800 328 5644.

To claim Universal Credit online, you’ll need to make an account. Once this account has been made, you’ll have 28 days to complete your claim, otherwise, you’ll have to start over.

If you live with a partner, you’ll both need to create accounts, which can then be linked together when claiming.

When applying online, you’ll need to provide an email address, a phone number and the details of your bank or building society account. You’ll also need to prove your identity, such as with a driving licence or passport.

You may be required to have an appointment with the Universal Credit team to complete your claim (this will either be in person or over the phone).

How Is Universal Credit Paid?

Universal Credit payments are made on the same day each month. If it falls on a weekend, you’ll be paid the previous working day. It usually goes directly into your bank or building society account.

If you don’t have a bank or building society account and are unable to open one, you should call the Universal Credit helpline on 0800 328 5644.

Normally, you’ll have to wait around five weeks to get your first payment. You can apply for an advance on this first payment if you need money in the meantime.

You can check how much you’re due to be paid and when through your online account.

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