Universal Credit August 2025 Update | Extra Payment Boost & New Rules

5 months ago

Stay updated on the Universal Credit August 2025 payment boost and the new rules announced by the Department for Work and Pensions. Learn exactly who qualifies, how much extra you could get, and what changes apply this month.

In this update, Imran from UK Help Desk - DWP & Insurance Updates explains the August payment increase, higher work allowance, and repayment changes — all in clear, simple language.

No fake promises, no clickbait — just real updates for UK claimants.

Transcript

00:00Imagine you log into your Universal Credit account this week and see a payment amount

00:04that is higher than usual. The first thing you think is is this a mistake or is this a genuine

00:10boost? Well today I am going to walk you through exactly what is changing in August 2025, why

00:19thousands of claimants are seeing an increase in their payments, what new rules you need to be

00:24aware of and most importantly how you can make sure you do not miss out on extra support,

00:30that you might be entitled. T.O. My name is Imran and if you are living in the UK and rely

00:36on Universal Credit, this is a video you need to watch right until the end because I will

00:42explain every update in plain, simple language, without any complicated jargon or confusing.

00:49Government wording. Let us start with the big news that has been making headlines this week.

00:54The Department for Work and Pensions has now confirmed that the annual benefit up rating,

00:59which normally happens in April, has been followed by an additional mid-year adjustment in August

01:05for certain claimants. This is rare and it is all linked to the fact that inflation earlier

01:11this year remained higher than predicted. The government has decided that some benefits,

01:18including certain elements of Universal Credit, would get an extra boost from August to help

01:23households cope with rising. Costs. This is not a universal rise for every single claimant,

01:29but it applies to specific groups, and I will tell you who qualifies in a moment.

01:35First, let us talk about why this matters right now. If you are on Universal Credit, you already

01:42know how tight budgets can be. Food bills have gone up, energy prices have eased slightly, but are still

01:49higher than before, and rent costs in many parts of the UK have risen sharply. For people in work,

01:56but on a low income, or for those out of work, every extra pound matters. That is why this payment

02:03boost could be so important for you. The extra amount varies depending on your circumstances,

02:10but some claimants could see an increase of £20 to £50 a month starting from their next payment date in

02:16August.so, who exactly, qualifies for this increase. Based on the official statement,

02:23the MIGER adjustment is being applied to claimants who receive additional elements in their Universal

02:28Credit award, such as the child element, the disabled child addition, or the limited capability

02:35for work-related activity element. It is designed to support families with children, people with

02:41disabilities, and those with higher living costs. This means if you only receive the standard allowance

02:47without any extra elements, you might not see this boost, but do not click away yet, because there are

02:54other changes you need to know about that could still put more money in your pocket. Now, let's talk

03:00about the new rules that came into effect this month. One of the biggest changes relates to the way Universal

03:07Credit assesses your earnings if you are in work. The work allowance, which is the amount you can earn

03:13before your Universal Credit starts to reduce, has been increased slightly for some claimants. If you

03:20have children or a limited capability for work, your work allowance could now be around £30 higher per month.

03:28This means you can earn more before your Universal Credit is reduced, which is a real incentive for those

03:34doing part-time or flexible work. Another rule change that started this month involves the repayment of

03:41advance payments. Many people take an advance when they first claim Universal Credit to help them cover

03:47the five-week wait for their first payment. Up until now, these advances were usually paid back over 24

03:54months, but from August 2025 the repayment period for new advances has been extended to 36 months. This will lower the

04:03amount taken off your monthly Universal Credit, leaving you with more money to live on each month,

04:09although you will be repaying for a longer time. Something else that could be a game-changer for many

04:14households is the new rent verification process. The DWP has introduced faster checks with landlords to

04:22make sure housing costs are processed more quickly. This should reduce delays for people who have recently moved or

04:29had a rent increase, meaning you get your housing elements sorted sooner. In the past, delays here

04:35have caused real financial stress, so this update is a positive step. Let me address a question I know

04:42many of you will be asking right now do you have to apply for this August payment boost? The answer is no.

04:49If you are eligible, the increase will be applied automatically to your Universal Credit payment.

04:54You should be able to see the updated amount in your online journal before your payment date. However,

05:01it is still worth logging in and checking your statement to make sure everything is correct. If you

05:07believe you qualify but the increase is not showing, send a message through your journal and ask the DWP

05:14to review your award. Now, here is something I want to stress while the extra money is helpful. It is

05:21important to think about how. You use it for many households. The temptation will be to cover overdue

05:27bills, which is understandable. But if you can, set aside even a small amount for unexpected expenses

05:35later in the month. The reality is that benefit rates rarely keep up with the actual cost of living,

05:41so a bit of forward planning can make a huge difference. I also want to highlight that alongside

05:47these changes. There are still other forms of help you can apply. For if you are struggling,

05:52many councils in the UK still have funding left in their household support fund, which can provide

05:58extra help with food, energy or essential items. There are also cost of living payments for some claimants,

06:06although these are targeted and not everyone will get them this year. The key message is do not assume

06:12universal credit is the only help you can get for those of you who are in work. This is also a good

06:19time to review your income and hours. Sometimes small changes, like increasing your working hours slightly,

06:26can lead to a better overall income even if your universal credit reduces a bit. The increase in the

06:33work allowance this month makes this especially worth checking. And remember, if your circumstances change,

06:40whether that's your work hours, your rent, or your household makeup you need to report it to the

06:45DWP promptly to make sure you are paid the right amount. Before we wrap up, let me give you a quick

06:52checklist for August 2025 so you do not miss out. First, check your universal credit journal for your

06:59updated payment amount. Second, confirm if you have any extra elements in your claim that might qualify for

07:07the boost. Third, if you have taken an advance, be aware your repayment could now be spread over a

07:14longer time, reducing your deductions. And finally, look into any local or national support schemes that

07:21could give you extra help alongside your universal credit. This is a positive month for many claimants,

07:29but it is also a reminder of how important it is to stay informed. The DWP rarely makes mid-year

07:36adjustments like this, so when they do, it is worth paying attention. By knowing the rules,

07:42checking your payments, and exploring all the help available, you can make sure you are not leaving

07:48money on the table. If you have found this update useful, make sure you share it with friends or family

07:54who might benefit. From the information, too many people miss out simply because they did not know they

08:00were entitled. Hello everyone, my name is Niran, and you have been watching UK Help Desk, TWP,

08:09and insurance updates. I bring you clear up-to-date information on benefits, payments, and financial

08:17health in the UK. If you want to stay ahead of the changes that could affect your income, hit the

08:26subscribe button and turn on notifications so you never miss an important update.

08:33Thank you for watching and I will see you in the next video. Take care.

Universal Credit August 2025 Update | Extra Payment Boost & New Rules

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