June 2025 brings important updates for millions of UK residents receiving support from the Department for Work and Pensions.
With changes to payment schedules, updated benefit rates, and the introduction of the Fair Repayment Rate, many households can expect meaningful improvements to their monthly income.
These changes come as part of the government’s broader efforts to reduce poverty and improve financial security. Understanding the latest DWP updates is essential for claimants looking to plan their finances more effectively this month.
What Are the Key DWP Payment Dates for June 2025?
June payments from the Department for Work and Pensions will largely follow the standard schedule, although some claimants may experience early payments due to a bank holiday in Scotland on Monday, 2 June.
In such cases, benefits are usually paid on the last working day before the scheduled date, which would be Friday, 30 May.
Key benefits paid in June include:
- Universal Credit
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Pension Credit
- Child Benefit
- Attendance Allowance
- Carer’s Allowance
Claimants should check their payment dates via the DWP online portal or refer to recent correspondence. Universal Credit, in particular, is paid based on a rolling assessment period. For some, especially those whose period ended in the last days of May, the payment might arrive in the first week of June.
Bank holiday adjustments typically affect only those with payments scheduled on a holiday. For others, payments will continue as expected throughout the month.
Who Will Receive Universal Credit Payments in June?
Eligibility for Universal Credit payments in June 2025 follows the usual DWP rules but is influenced by the monthly assessment structure.
Every claimant has an assessment period that runs for one calendar month, and payments are made seven days after that period ends.
This means that even though the benefit uprating occurred in April, many recipients won’t see the increase until June due to how assessment cycles work.
Claimants who are most likely to receive June payments with updated rates include:
- Those whose assessment period began after 7 April
- New claimants whose first payment cycle concludes in early June
- Individuals whose household income or living circumstances changed in April or May
This month will mark the first full payment cycle that reflects the April 1.7% increase for many claimants. It also coincides with the rollout of the new Fair Repayment Rate for applicable households.
What Is the Fair Repayment Rate and How Will It Affect Payments?
The Fair Repayment Rate is a new policy implemented on 30 May 2025 to reduce financial pressure on households repaying debts through Universal Credit deductions.
Previously, up to 25% of a claimant’s standard allowance could be deducted to recover overpayments or advances. Under the new system, this cap is reduced to 15%.
This change is automatically applied to claimants whose assessment periods started after 30 April 2025. The policy is aimed at ensuring that recipients can repay their debts at a more manageable pace while still covering the basic cost of living.
The reform is expected to benefit 1.2 million households. Among them, 700,000 households with children will gain the most, as these families typically receive higher standard allowances and face greater living expenses.
The reduction from 25% to 15% could result in a substantial annual gain. On average, it equates to approximately £420 per year in additional income retained by each qualifying household.
Key highlights of the Fair Repayment Rate:
- Starts from 30 May 2025
- Applies only to those with assessment periods beginning after 30 April
- Deductions reduced from 25% to 15%
- Helps support household financial resilience
How Has the April 1.7% Universal Credit Increase Affected June Payments?
The government increased all standard allowance rates for Universal Credit by 1.7% in April 2025 as part of its annual uprating.
While this change officially came into effect in April, many claimants will only start to see these higher payments reflected in June, depending on the timing of their assessment periods.
For example, a claimant whose assessment period runs from 6 March to 5 April would receive a payment in mid-April based on the old rate.
Their following assessment period would cover 6 April to 5 May, meaning the payment made around mid-May may still not fully reflect the updated rates. It is only by the June cycle that many will begin to see the full impact of the increase.
To illustrate the changes, here is a comparison of the old and new monthly standard allowance rates:
| Category | Old Rate (2024) | New Rate (2025) |
| Single under 25 | £311.68 | £316.98 |
| Single 25 or over | £393.45 | £400.14 |
| Couple under 25 (both) | £489.23 | £497.55 |
| Couple, one or both over 25 | £617.60 | £628.10 |
These increases may appear modest but provide essential financial support, especially when paired with reduced deductions under the new repayment policy.
What Are the Updated Universal Credit Standard Allowance Rates?
The updated allowance rates are part of the annual government uprating initiative that adjusts benefits in line with inflation and economic conditions. The 1.7% increase for 2025 applies to all categories of Universal Credit claimants.
Here’s a further breakdown of what the updated rates look like by age and household configuration:
| Claimant Type | Monthly Allowance (2025) |
| Single claimant under 25 | £316.98 |
| Single claimant 25 or over | £400.14 |
| Joint claimants both under 25 | £497.55 |
| Joint claimants, one or both over 25 | £628.10 |
These figures are calculated before any deductions or additional components (such as child elements or housing costs).
Claimants eligible for extra support, like childcare costs, limited capability for work, or carer elements, will see additional amounts on top of the standard allowance.
The full updated figures are visible within each claimant’s DWP online account, which shows a breakdown of standard allowances and extra entitlements. These changes are processed automatically and reflected in the monthly award notice.
What Are Ministers Saying About These DWP Changes?
Government ministers have publicly supported the changes as essential reforms aimed at improving financial stability and encouraging employment. Liz Kendall, Secretary of State for Work and Pensions, stated that the adjustments are part of a wider “Plan for Change” that seeks to increase living standards and reduce poverty.
The policy shift is aligned with long-term government goals to:
- Make benefits more sustainable
- Encourage employment among low-income families
- Improve take-home support without penalising those with debt
The Fair Repayment Rate is seen as a structural improvement that balances the need for debt recovery with basic living standards. Meanwhile, the April uprating follows economic trends to ensure benefits retain their value in real terms.
These reforms also complement the government’s White Paper on employment, titled “Get Britain Working”. The initiative aims to:
- Achieve an 80% employment rate by 2030
- Launch Youth Employment Guarantees
- Upgrade Jobcentre resources and digital services
- Increase the National Minimum and Living Wage levels
What Should You Do If Your June Payment Hasn’t Increased?
If your Universal Credit payment for June 2025 still reflects the old benefit rates or continues to include the higher deduction rate of 25%, there are several important steps you should take to clarify your situation and potentially correct the issue.
Due to the way Universal Credit is calculated, it’s not uncommon for increases or changes in deductions to take an extra payment cycle to appear.
This often causes confusion, especially when policy changes such as the Fair Repayment Rate or April uprating are implemented close to assessment period cut-off dates.
Step 1: Check Your Assessment Period
Universal Credit operates on a monthly cycle known as an assessment period, and your payments are based on your circumstances during this time. Your payment is issued seven days after the end of each assessment period.
For example, if your assessment period runs from 30 March to 29 April, the payment for this period would typically be made on 6 May.
Any changes announced for implementation after 30 April (such as the Fair Repayment Rate) wouldn’t apply to that payment. Instead, they would begin in the next assessment period, meaning you’d see the change reflected in your June payment.
To find your specific assessment dates:
- Log in to your Universal Credit online account
- Navigate to the “Payments” section
- Check the start and end dates of your latest assessment period
If your current assessment period began before 30 April, then your June payment would still reflect the previous deduction rate or pre-uprating standard allowance. In that case, the updated policies would only take effect in the July payment.
Step 2: Review Your Payment Breakdown
Within your Universal Credit account, each monthly statement includes a breakdown of:
- Your standard allowance
- Any additional elements (e.g., child, housing, disability)
- Deductions made for advances, overpayments, or sanctions
Compare your most recent statement with the updated Universal Credit rates. If the standard allowance hasn’t changed from the 2024 rate, or if the deduction percentage still shows as 25%, it’s a sign that your current assessment period predates the changes.
Also review whether you are still repaying a budgeting advance or other DWP debts, which may affect the total received.
Step 3: Understand If You Qualify for the New Rates
To benefit from the 1.7% increase and the Fair Repayment Rate, your assessment period must meet these conditions:
| Condition | Requirement |
| For uprated benefit rates | Assessment period must begin on or after 7 April 2025 |
| For reduced deduction (15%) | Assessment period must begin on or after 30 April 2025 |
If your period falls before these dates, the old rate or deduction may still apply for that cycle.
Step 4: Look for Backdated Adjustments
In cases where the system applies a delay in implementing rate changes, the Department for Work and Pensions may issue backdated payments automatically.
These are paid separately from your normal monthly payment and will show up in your account as a one-off deposit.
Backdated payments might be issued if:
- Your updated entitlement wasn’t reflected in the latest payment
- Your deductions were incorrectly calculated at 25% instead of 15%
- A system error delayed the implementation of policy updates
You do not usually need to request backdated payments unless a significant delay occurs. If a backpay is expected, allow 2 to 3 weeks for it to process before raising a concern.
Step 5: Contact DWP if You Still Have Concerns
If after checking your assessment period, payment breakdown, and updated eligibility you still believe your payment is incorrect, contact DWP through the following options:
- Submit a query via your Universal Credit journal
- Call the Universal Credit helpline on 0800 328 5644 (Monday to Friday, 8am to 6pm)
- Visit your local Jobcentre Plus office if needed
Be sure to have your National Insurance number, payment history, and details of your assessment period available to speed up the process.
While many issues resolve automatically through the system, proactive monitoring ensures that no underpayment or eligibility issue goes unnoticed.
Conclusion
DWP payments in June 2025 reflect significant policy changes designed to support UK households more sustainably.
From reduced debt deductions under the Fair Repayment Rate to the 1.7% increase in Universal Credit allowances, these reforms aim to ease financial strain and promote long-term security.
Claimants are encouraged to monitor their online accounts and verify payment details carefully. As the government continues to modernise the welfare system, understanding these changes ensures individuals and families receive the full support they are entitled to.
FAQs About DWP June Payments 2025
Will all Universal Credit claimants see an increase in June 2025?
Not necessarily. Only those whose assessment periods reflect the April uprating or fall after the Fair Repayment Rate implementation date will see the changes in June.
What if my payment still shows the old rate after June?
You may be due a backdated payment. Check your DWP account and assessment dates. If issues persist, contact DWP for clarification or appeal.
Does the Fair Repayment Rate apply to everyone?
No. It applies only to those with existing debt repayments whose assessment period started after 30 April 2025.
Are PIP and ESA payments increasing in June too?
Some benefits, including PIP and ESA, were uprated in April. Whether you see the increase in June depends on your individual payment schedule.
Will future DWP payments continue to rise?
DWP adjusts benefits annually in April based on inflation and economic policies. Further increases may be introduced in 2026 subject to fiscal reviews.
How can I check my assessment period dates?
Log in to your Universal Credit online journal, where you can view your assessment period start and end dates, payment history, and messages from DWP.
What should I do if I’m missing a DWP payment?
Contact DWP directly. Payment issues can result from bank holidays, incorrect account details, or system errors.
