An expert said the DWP policy needs to be changed
Universal Credit claimants face a “penalty” as some people get £140 less because of their age. Benefits experts recently spoke to MPs about the issue pointing out that some claimants get “a lower payment”.
Policy advocates were speaking to the Work and Pensions Committee and the Education Committee about implementing the Child Poverty Strategy. Charis Chittick, from One Parent Families Scotland, was keen to highlight what she termed the “young parent penalty” where “under 25s will get a lower payment”. She told the committee: “That is where under-25s are paid a lower rate of Universal Credit than over-25s. That used to be mitigated for young parents; it is not any more. That is why we call it the young parent penalty.
“The costs are still the same for those young people. It costs the same amount to raise a child whether you are 22 or 32. We really need to see that policy changed to protect children and families as well.”
This refers to the fact that you get a different Universal Credit monthly standard allowance payment depending on your age. If you are single and aged under 25, you get £338.58 a month, while single claimants aged 25 and over get £424.90, a difference of £86.32.
If you live with a partner and you both are aged under 25, you get £528.34 a month for your household, while if you are in a couple and either of you are 25 or over, you get £666.97, a gap of £138.63. Universal Credit claimants can get extra support if they have children in their care.
Extra amounts for Universal Credit claimants
You can get £303.94 a month on top of your standard allowance for each child that lives with you. You may also be able to get an extra amount if your child is disabled, if they get certain other benefits.
The extra amounts here include £164.79 a month at the lower rate and £514.71 a month at the higher rate. Universal Credit claimants in work can also claim back up to 85 per cent of their childcare costs if they are in work.
Parents may also want to check if they can claim Child Benefit. This benefit is worth £27.05 a week for your eldest or only child and £17.90 a week for each additional child you have.
DWP statement
The DWP was asked to explain the thinking behind the different Universal Credit rates depending on if you are aged 25 or over.
A DWP spokesperson said: “Universal Credit includes separate elements to support eligible customers with the cost of housing, children and childcare, and working families on Universal Credit can claim up to 85 per cent of eligible childcare costs each month. What’s more, our Child Poverty Strategy will lift 550,000 children out of poverty in 2030 – the biggest reduction in a single parliament.
“We’re also rebalancing Universal Credit to tackle the perverse incentives that discourage work while delivering the first sustained above inflation rise in the basic rate since it was introduced.”
The department said that young people in work typically earn less than people aged over 25 and are also more likely to live in someone else’s household, with lower living costs.
The DWP said the lower rate of Universal Credit for claimants aged under 25 provides an incentive for younger people to find work and progress in their career. The Government body also pointed out that claimants are getting an above-inflation increase in their payments, as set out in the Universal Credit Act 2025.
This means a single claimants aged under 25 will get an extra £255 this year, over £110 more than if their payments had gone up in line with inflation alone. For a couple both aged under 25, they will receive around £365 more this year, which is £140 more than if they had been uprated by inflation alone.
