The Department for Work and Pensions (DWP) has announced a major change for Universal Credit claimants, requiring them to confirm changes in their circumstances every six months starting April 2025. This update will affect all 7.5 million Universal Credit recipients, whether they are employed, unemployed, or self-employed.
The change comes alongside a 1.7% increase in Universal Credit payments and a reduction in third-party deductions from 25% to 15% starting April 7. Additionally, the government is preparing welfare reforms to help more individuals find and maintain employment.
Key Changes for Universal Credit Claimants
1. New Requirement to Confirm Circumstances Every Six Months
- Starting in April 2025, claimants must reconfirm their circumstances twice a year.
- The DWP will send prompts to remind claimants to declare any changes.
- Any reported changes will be processed and verified as usual.
2. Universal Credit Payment Increase from April 2025
- Payments will rise by 1.7%, ensuring additional financial support.
- This adjustment aligns with inflation and cost-of-living considerations.
3. Third-Party Deduction Reduction
- Currently, up to 25% of Universal Credit payments can be deducted for debts.
- From April 7, 2025, this will be reduced to 15%, easing financial strain on claimants.
DWP’s Plan to Support More People into Employment
The government is introducing new welfare reform initiatives to support:
- People transitioning from Employment and Support Allowance (ESA) to Universal Credit.
- Individuals with fluctuating or invisible health conditions, such as fibromyalgia and ADHD.
- Neurodivergent workers, as part of the Buckland Review of Autism Employment.
Support Programs for Job Seekers with Disabilities
- Work Coaches & Disability Employment Advisers – Personalized support at Jobcentres.
- Access to Work Grants – Financial support for workplace adjustments.
- Employment Advisors in NHS Talking Therapies – Mental health support for job seekers.
- Individual Placement and Support (IPS) in Primary Care – Employment assistance for those with health conditions.
Government’s Vision for Employment Growth
- The £240 million investment in employment programs aims to increase workforce participation.
- The goal is to achieve an 80% employment rate, focusing on supporting disabled individuals back into work.
- Labour MP Mark Sewards recently questioned how individuals with fibromyalgia, ADHD, and other invisible disabilities would be supported.
Employment Minister Alison McGovern’s Response:
- The government is expanding initiatives to support people with neurodiversity and invisible health conditions.
- Efforts will build on the findings of the Buckland Review of Autism Employment.
- “Appropriate work is generally good for health and wellbeing, so we want everyone to get work and get on in work.”
The DWP’s new Universal Credit requirement will impact millions of claimants starting April 2025, ensuring regular updates on circumstances. Alongside this, benefit payments will increase, deductions will decrease, and new employment support initiatives will help more people find suitable jobs.
As the government pushes for welfare reform, claimants should stay updated on policy changes and ensure they meet new requirements to avoid payment disruptions.
FAQ’s
1. What is the new Universal Credit requirement starting in April 2025?
Claimants must confirm any changes in their circumstances every six months to ensure their benefit entitlement remains accurate.
2. Will Universal Credit payments increase in April 2025?
Yes, Universal Credit payments will rise by 1.7%, providing additional financial support to claimants.
3. How are third-party deductions changing?
- Currently: Up to 25% of Universal Credit can be deducted for debts.
- From April 7, 2025: This will be reduced to 15%, easing financial burdens.
4. What support is available for individuals with disabilities?
The DWP’s new initiatives include:
- Work Coaches & Disability Employment Advisers in Jobcentres.
- Access to Work Grants for workplace adjustments.
- Employment Advisors in NHS Talking Therapies for mental health support.
- Individual Placement and Support (IPS) in Primary Care for job seekers with health conditions.
