The Department for Work and Pensions (DWP) has announced that nearly four million households will see an annual income boost estimated to be worth £725 after a Bill to overhaul the welfare system received Royal Assent on September 3. The Universal Credit Act 2025 is now an Act of Parliament.

The Universal Credit Bill, which aims to rebalance the core payment and health top-up in Universal Credit, will see the Universal Credit standard allowance permanently rise above inflation, amounting 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 is the highest permanent real terms increase to the main rate of out-of-work support since 1980.

The DWP said the reforms set out in the Universal Credit Bill will address the

See Full Page