The Department for Work and Pensions (DWP) has declared that nearly four million households will experience an annual income increase estimated to be worth £725. It follows the Royal Assent of a Bill to revamp the welfare system on September 3. The Universal Credit Act 2025 is now officially an Act of Parliament.

The reforms outlined in the Universal Credit Bill aim to recalibrate the core payment and health top-up within Universal Credit. The Bill will result in the Universal Credit standard allowance permanently rising above inflation, equating to £725 by 2029/30 in cash terms for a single person aged 25 or over. According to the Institute for Fiscal Studies (IFS), this represents the most significant permanent real-terms increase to the main rate of out-of-work support since 1980, repo

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