The Department for Work and Pensions (DWP) has confirmed a Universal Credit rise set to take effect across the UK from April 2026.
This increase, linked to the September 2025 inflation rate of 3.8%, forms part of the government’s commitment to easing the cost of living and supporting low-income households.
With updated standard allowances, child elements, and disability support, the changes are expected to impact millions of claimants.
In this article, we break down the confirmed new rates, what they mean for individuals and families, and how this Universal Credit rise fits into wider welfare and economic reforms.
What Has the DWP Announced About Universal Credit in 2026?
The Department for Work and Pensions (DWP) has confirmed a major increase to Universal Credit payments from April 2026. This adjustment follows the annual review of benefit rates, which typically rise in line with inflation.
With the UK’s Consumer Price Index (CPI) at 3.8% as of September 2025, claimants can expect a meaningful uplift in their monthly support.
Universal Credit, introduced in 2013 to simplify the welfare system, currently supports millions of people across the UK. The 2026 rise will impact nearly all claimant groups, including single adults, couples, families with children, and carers.
Announced as part of the Autumn Budget, this increase aims to address inflation, reduce financial pressure, and improve support for low-income households. Claimants should prepare for updated rates from April 2026.
Why Is Universal Credit Increasing in April 2026?
Each year, the government reviews benefit levels to ensure that they align with changes in the cost of living. The review is based primarily on the CPI inflation figure for the preceding September, which in 2025 stood at 3.8%.
This is a notable rise from the 1.7% CPI that determined benefit changes in April 2025, and reflects higher household costs and ongoing economic pressures.
The Inflation Link
The decision to raise Universal Credit in line with CPI inflation is a statutory commitment. The 3.8% figure will be used to uprate the majority of working-age benefits, with some components seeing larger or fixed increases due to previously legislated commitments.
Budget Priorities and Public Pressure
Chancellor Rachel Reeves, tasked with closing a substantial £50 billion gap in public finances, has nonetheless prioritised reducing the cost of living, NHS waiting times, and poverty.
Dropping proposals for income tax hikes, the government instead opted to boost welfare support as a more targeted way to ease financial pressure on the UK’s most vulnerable households.
What Are the New Universal Credit Rates for Single Claimants?
The standard allowance for single claimants is increasing in April 2026, with age-based differences remaining in place. This ensures younger claimants and older claimants continue to receive appropriately scaled support.
Updated Standard Allowances for Single Adults:
| Age Group | Current Monthly Rate (2025) | New Monthly Rate (2026) |
| Single under 25 | £316.98 | £338.58 |
| Single aged 25 or over | £400.14 | £424.90 |
This increase provides an additional £21.60 and £24.76 per month respectively, offering modest relief against ongoing rent, utility, and food cost pressures. The increase may be even more meaningful when combined with other applicable elements such as housing or childcare support.
How Much More Will Couples Receive Under the 2026 Universal Credit Increase?
Couples claiming Universal Credit jointly will also see an increase in their monthly standard allowance. The rates vary depending on whether both claimants are under 25 or if one or both are over 25.
Updated Rates for Joint Claimants:
| Couple Type | Current Rate (2025) | New Rate (2026) |
| Both under 25 | £497.55 | £528.34 |
| One or both aged 25 or over | £628.10 | £666.97 |
These increases, amounting to roughly £30.79 and £38.87 respectively, are intended to help households better manage household bills, particularly during a period when mortgage rates and rent prices remain high across the UK.
What Are the Updated Child and Disability Additions?
Child elements within Universal Credit have also been revised. Families with children, particularly those with disabilities, will benefit from increases that reflect higher costs associated with child-rearing and additional care needs.
Child Element Updates:
There are two rates for the first child based on birth date, and one rate for all subsequent children:
- First child (born before 6 April 2017): Increasing from £339.00 to £351.88
- First or subsequent child (born on or after 6 April 2017): Increasing from £292.81 to £303.94
Disability Addition Increases:
- Lower rate addition: From £158.76 to £164.79
- Higher rate addition: From £495.87 to £514.71
These enhancements aim to offset costs such as increased childcare fees, special educational requirements, or healthcare-related expenses, helping families maintain stability during challenging economic times.
How Are Work and Carer Elements Changing in Universal Credit?
Universal Credit includes additional elements for those who are working with children or limited work capability, and for individuals providing care to disabled persons.
Work Allowances:
Work allowances are the amount claimants can earn before their Universal Credit is reduced. These are especially important for working parents or those with limited capability for work.
- Higher work allowance (no housing support): From £684.00 to £710.00
- Lower work allowance: From £411.00 to £427.00
Carer’s Element:
The Carer amount will increase from £201.68 to £209.34, recognising the vital, unpaid role carers play in supporting others.
These updates ensure that claimants who are working part-time or have caring responsibilities are not penalised and can retain more of their income while receiving support.
What Do the 2026 Changes Mean for People with Disabilities?
People with disabilities or long-term health conditions will experience mixed impacts from the 2026 welfare changes. The effects largely depend on individual circumstances and the type of support they receive.
Limited Capability for Work: Key Updates
- The basic LCW amount stays the same at £158.76
- General Work-Related Activity rate reduces from £423.27 to £217.26
- Protected groups receive an increased rate of £429.80
These adjustments aim to deliver more targeted support, ensuring enhanced payments go to those with the most serious or long-standing conditions.
Another major change is the continued migration from income-related Employment and Support Allowance (ESA) to Universal Credit by March 2026. This transition is designed to simplify the system and apply health-related support more consistently.
What Other Key Changes Are Being Introduced in 2026?
Several wider policy changes beyond payment rate increases are also taking effect in 2026, which could significantly impact households across the UK.
Removal of the Two-Child Limit
The government will abolish the two-child limit within Universal Credit starting April 2026. This policy change is expected to lift up to 450,000 children out of poverty by the end of the parliamentary term, increasing to 550,000 with additional support measures such as Free School Meals.
Youth Guarantee and Jobs Guarantee
The Youth Guarantee, backed by £820 million in government funding, will offer a Jobs Guarantee to all young people, improving access to employment and apprenticeships.
This initiative is part of the broader Labour commitment to address youth unemployment and skill shortages.
How Will the 2026 Universal Credit Rise Affect the Cost of Living Crisis?
The 2026 Universal Credit rise is a timely response to persistent economic challenges affecting UK households. With utility bills, rent, and food prices remaining elevated, the uprating is expected to ease pressure for low-income families.
However, some experts argue that even with the 3.8% rise, benefits still lag behind real-world living costs in major cities.
Nonetheless, the abolition of restrictive caps such as the two-child limit and enhanced child allowances mark a shift towards a more progressive welfare system.
These reforms are also expected to stimulate local economies, as increased disposable income circulates within communities, especially in deprived areas.
Conclusion
The upcoming Universal Credit rise in April 2026 marks a significant step in the UK government’s efforts to address inflation and strengthen social support.
With higher allowances for individuals, couples, carers, and families, along with major policy shifts like the removal of the two-child limit, the changes reflect a more inclusive welfare strategy.
While some challenges remain, this increase offers essential relief amid ongoing economic pressures. Claimants are advised to review their entitlements, stay updated through DWP announcements, and seek guidance where needed to fully benefit from the Universal Credit rise and related changes in the new financial year.
Frequently Asked Questions
What is the Consumer Price Index, and how does it affect Universal Credit?
The Consumer Price Index (CPI) measures inflation. The DWP uses the CPI figure from the previous September to adjust benefits annually, ensuring they align with changes in living costs.
When will the new Universal Credit payments start in 2026?
The updated payment rates will take effect in April 2026, typically from the first full assessment period beginning after the 6th of April.
Are the 2026 changes permanent or subject to further review?
While most changes are confirmed for 2026, the government reviews benefit levels each year. Some increases are protected until 2029, but others may be adjusted based on future budgets and inflation data.
How will the Universal Credit rise impact housing benefit components?
Housing support within Universal Credit, such as non-dependants’ housing contributions, will see minor adjustments. For instance, deductions are rising from £93.02 to £96.55.
Will people on legacy benefits receive similar increases?
Most legacy benefits are being phased out. Claimants on ESA, Income Support, and similar programs are being moved to Universal Credit, where new rates will apply.
Is the two-child limit removal applicable to all claimants?
Yes, starting April 2026, all claimants will be eligible for child elements beyond the second child, reversing a policy that disproportionately affected large families.
What support is available for claimants unsure about the new changes?
Support is available through the Universal Credit helpline, and online platforms such as gov.uk. Local jobcentres also provide tailored advice.
