Universal Credit to state pension: all the payment changes expected for 2021 – full list | Personal Finance | Finance


Universal Credit has seen rising levels of demand throughout 2020 and more people are set to reach their state pension age in the coming months. The Government has confirmed both of these state benefits will see their payments rise in the 2021 to 2022 financial year.

Other Universal Credit changes


  • For those with a first child born before April 6, 2017, the extra amount is going up from £281.25 to £282.50
  • For those with a child (born on or after April 6, 2017) or second child and subsequent child (where an exception or transitional provision applies), the extra amount is going up from £235.83 to £237.08

  • For those with a disabled child, the lower rate of the additional payment is going up from £128.25 to £128.89 and the higher rate from £400.29 to £402.12

Childcare costs

Claimants who need help with childcare costs can get up to 85 percent of it back:

Limited capability for work


Claimants who provide care for at least 35 hours a week for a severely disabled person who receives a disability-related benefit receive extra, and this is going up from £162.92 to £163.73.

Additionally, the Government recently confirmed how the state pension will be increased in the coming year under triple lock rules.

From April, state pension payments of all kinds will be increased by 2.5 percent. This means new state pension claimants will see their payments increased to £179.60 per week. Those claiming the old state pension will have their payments rise to £137.65.

Other state benefits will also see their payments rise from next year, with the following all having their new amounts laid out on the Government’s website:

  • Attendance Allowance
  • Bereavement Benefit
  • Carer’s Allowance
  • Adult dependency increases for spouse or person looking after children
  • Disability Living Allowance
  • Employment and Support Allowance (ESA)
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Industrial Death Benefit
  • Jobseeker’s Allowance (JSA)
  • Maternity Allowance
  • Pension Credit
  • PIP
  • Severe Disablement Allowance
  • Statutory Adoption Pay
  • Statutory Maternity, paternity and shared parental Pay
  • Statutory Sick Pay

Some of the increases involved with these benefits will be dependent on varying factors and as such, it can be difficult to keep up with all of them.

Thankfully, benefits calculators can be found online which are free-to-use and can help people find out what they’re entitled to, how they can claim benefits and what will happen to the payments if the claimant starts work.

The Government lists a number of trusted and easy to use calculators on their website, which includes services from Turn2us, Policy in Practice and entitledto.

Before these calculators are used, claimants will need to get certain details ready which includes information on their savings, income levels and outgoings.

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