The Department for Work and Pensions has confirmed a significant financial uplift for millions of claimants, with approximately 4.2 million people set to receive a £430 monthly boost starting in April 2026. This increase specifically targets those receiving Universal Credit who have been assessed as having 'limited capability for work and work-related activity' (LCWRA), meaning they are not required to seek employment due to medical conditions or disabilities.
Who Qualifies for the Enhanced Payment?
This substantial rise applies to individuals who are claiming Universal Credit and have been deemed unfit for work on medical grounds. The number of people in this category has surged dramatically, climbing from 2.7 million when Labour assumed power in July 2024 to the current 4.2 million figure. To be placed in the LCWRA group, claimants must submit GP sick notes for a continuous three-month period and undergo a rigorous DWP work capability assessment. This evaluation determines how physical or mental health conditions, or disabilities, impact their ability to maintain employment.
Payment Details and Rule Changes
For existing LCWRA recipients whose claims were established before April 6, 2026, the monthly payment will increase from £423.27 to £429.80. This amount is paid in addition to all other Universal Credit elements, including the standard allowance that forms the basic foundation of the benefit. However, a crucial legislative change introduced by the Labour Government means that individuals placed in the LCWRA group after April 6 will receive only around half this amount.
The reduction for new claimants, bringing their monthly payment down to £217.26, was implemented to eliminate what the government described as a "perverse incentive" for people to declare themselves unfit for work solely to access higher benefit levels. Despite this general reduction, two important exemptions will allow new LCWRA recipients to still qualify for the full £429.80 monthly amount: those who are terminally ill and those who meet the yet-to-be-detailed Severe Conditions Criteria.
Political Context and Criticism
The announcement comes amid ongoing political controversy surrounding the welfare system's expansion. Conservative critics have attacked the Labour Government for implementing tax increases to fund what they characterise as growing benefit handouts, with Chancellor Rachel Reeves' Autumn Budget being dubbed "a Budget for Benefits Street" by Tory opponents. The DWP's latest statistics reveal that Universal Credit recipients have reached 8.4 million as of December, marking the most significant increase since the pandemic period.
Notably, the number of UC claimants not required to work rose from 3.06 million in December 2024 to 4.17 million in December 2025, while those claiming UC while in work saw a slight decrease from 2.25 million to 2.19 million. Since Labour's General Election victory in July 2024, the total number of Universal Credit claimants has grown by 1.5 million, from 6.9 million to the current 8.4 million.
Government Response and Future Plans
A Department for Work and Pensions spokesperson addressed the situation, stating: "This increase comes as people are moving off legacy benefits– a transition we inherited from the previous government, alongside a system with the wrong incentives that writes people off. This government is determined to fix this. That's why we're removing the financial incentives in Universal Credit that encourage inactivity, and as part of our wider plans to Get Britain Working, we have redeployed 1,000 work coaches to help thousands of sick and disabled people who were previously left without contact for years."
The government's approach reflects a dual strategy of providing increased support for existing vulnerable claimants while implementing structural changes to discourage perceived benefit dependency among new applicants. As the April 2026 implementation date approaches, further details about the Severe Conditions Criteria exemptions are expected to be released, providing clearer guidance for those with serious health challenges.
