DWP has still not given some Universal Credit claimants the April pay increase

Thousands of families relying on Universal Credit are finally set to receive the increase from the Department for Work and Pensions (DWP) that was due in April. Of course, it is not the “huge payrise” outlets like the Sun have made it out to be, just for clicks. It is also not “unexpected“, like clickbait merchant Birmingham Live has claimed. 

Moreover, the DWP has once again demonstrated the troubling inefficiencies and complexities baked into the welfare system—delaying crucial increases for many claimants by up to two months. This lag not only undermines the purpose of benefit support but reveals a system ill-equipped to respond swiftly to the escalating cost of living.

Universal Credit: a meagre increase from the DWP

The headline 1.7% rise in Universal Credit payments arrived long after many already struggling families desperately needed relief.

Due to the assessment-based, monthly payment structure, some claimants — depending on when their “assessment period” begins — will not witness any increase until 12 June. For those whose assessment period started just before 7 April, this means enduring a prolonged wait despite the government’s awareness of soaring living costs.

Inflation in April was running at 3.5% – once again, showing that the DWP is sorely underpaying Universal Credit claimants.

This unnecessary delay is symptomatic of a broken system designed without consideration for the urgency that financial hardship demands. The staggered roll-out evidently penalises the most vulnerable, forcing families to weather an extended period without adequate support, precisely when several are battling to keep up with soaring bills.

Woeful

Moreover, even when the increase finally arrives, the size of the uplift remains woefully inadequate.

The standard monthly allowance for a single claimant over 25 has risen merely to £400.14, with similar fractional increments across other claimant categories. Although presented by the DWP and others as “helpful”, these increases fall far short of keeping pace with the relentless rise in the cost of essentials like energy, food, and housing.

Much of the media is parroting the line the DWP’s increase to Universal Credit is good. Even the Mirror, which presents itself as supportive of chronically ill and disabled people, is doing this (presumably for ad revenue). It ran with the headline:

DWP Universal Credit payments to rise for millions from June in major boost

Firstly, it’s not millions. Secondly, it’s not a “major boost” – if anything, it’s likely a real-terms pay cut for claimants.

Academic research and independent analyses consistently show that benefit rises have systematically lagged behind inflation for over a decade.

For instance, the Resolution Foundation highlighted that since 2010, DWP benefit payment increases have persistently failed to match inflation, causing real-terms reductions in support. This is due to government freezes and below-inflation increases. 

The result? Households on Universal Credit regularly face diminished purchasing power, deepening poverty rather than alleviating it.

The health element freeze: stark neglect from the DWP

Compounding this troubling picture is the DWP and Labour government’s planned cruel freeze on certain elements of Universal Credit—most notably the health element for existing claimants, which under proposals could remain locked until as late as 2029-30.

This freeze effectively sidelines chronically ill and disabled people, excluding them from even minimal financial improvements and exacerbating existing inequalities.

By embedding such a lengthy freeze, the government not only proves indifferent to the needs of the most vulnerable but actively contributes to their financial marginalisation. As inflation continues to climb, failing to revise these elements constitutes a breach of the welfare safety net’s responsibility.

Faced with these shortcomings by the DWP, local councils like Middlesbrough have resorted to emergency “top-up” payments via the Household Support Fund, offering families up to £120 to meet immediate needs.

While welcome, these patchwork measures starkly illustrate the insufficiency of central government support. Moreover, reliance on charitable organisations and benefit calculators from groups like Turn2Us underscores a welfare system that forces claimants into a bewildering maze just to secure the help they are entitled to.

Universal Credit is broken – and Labour are smashing it further to bits

The meagre 1.7% increase in Universal Credit payments, coupled with arbitrary delays and freezes, underscores an inherently flawed system that fails the very people it is intended to support. Yet many corporate media outlets would have you believe that already poverty-stricken claimants were somehow getting a generous payrise. 

If the DWP is serious about protecting those on the lowest incomes, it must overhaul this intricate bureaucracy, refuse to freeze vital components like the health element, and commit to benefit increases that genuinely reflect inflationary pressures.

Without this, Universal Credit is little more than a ticking time bomb—promising relief but delivering delay and disappointment to those who need it most.

Featured image via the Canary