Universal Credit will be raised by £1,000 a year as part of a £7billion coronavirus welfare rescue package. The "standard allowance" - £323.22 a month for single people and £507.37 a month for couples - will be raised for the next 12 months.
Working Tax Credit will be raised by the same amount. Chancellor Rishi Sunak said the move would "benefit 4million of our most vulnerable households".
The government will also suspend the minimum income floor in Universal Credit "for everyone effected by the economic impact of coronavirus".
This means a self-employed person with zero income will be able to claim Universal Credit at a similar rate to someone who is unemployed.