Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether his Department holds an estimate of the weekly cost of essentials for a single adult aged 25 or over; and what target level for the Universal Credit standard allowance above inflation increases in the Universal Credit Act 2025 are intended to reach by 2029/30.
Each Universal Credit award includes a standard allowance which is paid according to age and household unit. The purpose of the standard allowance is to provide towards basic living costs. Additional amounts are added to provide for individual needs such as housing, children, disability, and childcare costs.
Whilst a range of organisations have published estimated costs that provides a useful benchmark, each household will always have different circumstances and requirements they must meet.
The Universal Credit Act 2025 requires the standard allowance to increase by the Consumer Prices Index (CPI) each year plus a minimum additional uplift through to 2029/30. From April 2027, the standard allowance will increase by 3.5 per cent followed by a further 3.1 percent uplift, meaning a single person aged 25 or over will receive around £219 more next year - over £45 more than if up-rated by inflation alone.