Universal Credit and April 2023 benefits cap increase

QandAfromMyBrain

Hi I have raised this issue in my UC journal but hoping I  might get a faster response here as I'm feeling quite worried.

My understanding is that the benefits cap was increased by 10% from the start of April but I just got my UC payment statement and although my rent increase has been taken into account I seem to have had the benefits cap applied at 2022/23 level instead of the new increased rate, so actually no increase in the *total* payment at all.

Does anyone know if this is because of the assessment period starting in March ?
Will it increase next month or have they have made a mistake?
I don't understand and I am really worried

sarahlply

Hi I believe the increase is in arrears, so should be next period, if no one else replies I can try and check last years statement in a bit to see what happened, newish to the system too.

KxMx

Nothing to be worried about I don't think. 
Due to the date of raise and my assessment period, I won't see any increase (excluding housing element) until my payment of 2nd June!
I'll still get 12 payments at the new rate, I just have to wait a bit longer for them to start.

Newcad

It's normal.

The new benefit rates apply to the UC month that starts after they come in.

This year that was the 10th April and so those who's AP started on 10th April will be the first to see the anual increase in UC rates in their payment on 17th May.

In contrast the increase in rent applies from the start of the monthly AP before it happens
(Depending on just when your AP starts you can 'win' a little bit, because you get Housing Element for the full UC month even though the rent didn't go up till 3rd April).

So in your April or early May UC payment you will just see the increase for rent.
Then in the next payment (May or early June) you will see the UC anual rate rise.

QandAfromMyBrain

Thank you both for explaining, that makes sense now. Unfortunately it does leave me paying my rent increase  for two months without a benefits increase to cover it, but at least I know things will be better next month.