DWP giving thousands of households £201 payment boost (2025)

The Department for Work and Pensions is offering a monthly £201 boost to thousands of households, with many more potentially missing out on this claim.

Those providing unpaid care for at least 35 hours a week to someone receiving disability benefits could be eligible for this financial aid, known as the Universal Credit Carer's Element.

As of April 7, 2025, the amount has risen from £198.31 a month to £201.68 a month. This can be claimed either as a top-up to your Universal Credit or in addition to the separate benefit, Carer's Allowance.

Carer's Allowance and the Universal Credit Carer's Element serve similar purposes and are considered overlapping benefits, meaning there is no financial advantage to claiming both.

This is due to the equivalent monthly amount received in Carer's Allowance, which stands at £360.97, being deducted from your Universal Credit payment, reports Birmingham Live.

However, having the Carer Element added to your Universal Credit can help to partially offset this deduction.

It's important to note that you do not need to receive Carer's Allowance to qualify for the Carer's Element, as they are entirely independent benefits.

To be eligible for the Carer Element, the individual you care for must receive one of the following disability benefits: The daily living component of Personal Independence Payment; the highest or middle rate care component of Disability Living Allowance or Child Disability Payment; Attendance Allowance or its Scottish equivalent, Pension Age Disability Payment; Armed Forces Independence Payment; or Constant Attendance Allowance paid with Industrial Injuries Benefit or War Disablement Pension.

The same criteria apply to those claiming Carer's Allowance, with the exception of an earnings limit of £196 a week on the recipient. There is no such threshold for Universal Credit Carer's Element.

Over a million people are recipients of Carer's Allowance, including 29,000 in Birmingham (the largest in any local authority area). The majority (746,000) are women.

However, many could see their claim terminated in the future when the person they care for no longer qualifies for Personal Independence Payment due to changes in eligibility that will impact the number of people who qualify for PIP's daily living component.

The DWP predicts that by 2029/2030, 150,000 people will lose their Carer's Allowance. They would then also lose entitlement to Universal Credit Carer's Element for the same reason.

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