Millions of households across the UK are set to feel a financial squeeze as the Department for Work and Pensions (DWP) confirms that six major benefits will not see an increase this April. This freeze comes at the same time as other inflation-linked benefits administered by both the DWP and HMRC are set to rise by 3.8% from April 2026.
The annual uprating, tied to the Consumer Prices Index (CPI) rate of inflation from September 2025, will see increases for many. Universal Credit standard allowances will receive an additional uplift of 2.3% as specified in the Universal Credit Act 2025, while the basic and new State Pension will be uprated by a significant 4.8%.
Which Benefits Are Being Frozen?
While some payments rise, several crucial supports will remain at their current cash levels. This freeze affects benefits that are not directly linked to the annual inflation measure, leaving recipients with effectively reduced spending power as living costs continue to climb.
The Full List of Frozen Payments
The benefits that will not increase in April 2026 are:
The Benefit Cap: This limit on the total amount of benefit most working-age people can receive will remain unchanged. It affects a wide range of payments including Universal Credit, Housing Benefit, Jobseeker’s Allowance, and Child Benefit.
Local Housing Allowance (LHA): The rate used to calculate housing support for private renters will be frozen. With rents rising across the country, this means the financial help available will cover a shrinking proportion of actual rental costs. Analysis suggests that currently, only 2.7% of homes in Great Britain are affordable for those relying on this frozen allowance.
Capital Limits: The savings thresholds for claiming means-tested benefits like Universal Credit and Income Support will stay the same. The lower limit of £6,000 and the upper eligibility limit of £16,000 will not be adjusted, meaning more savings will be counted as assumed income.
The £10 Christmas Bonus: The longstanding, tax-free annual payment to pensioners and some working-age benefit claimants will remain at £10. The DWP has stated there are no plans to increase this payment or broaden eligibility.
Universal Credit Health Element for New Claimants: From this year, new claimants deemed to have Limited Capability for Work and Work-Related Activity (LCWRA) will see their payments halved and then frozen. The rate will fall from £97 a week to £50 per week by 2026-27, with an estimated 730,000 future recipients losing an average of £3,000 a year.
Limited Capability for Work (LCW) Element: This lower-tier Universal Credit element, already abolished for most new claims since 2017, will be held at its current cash level for those who still receive it.
Impact and Government Response
The freeze on these specific benefits creates a two-tier system where some support keeps pace with prices while other critical allowances stagnate. For private renters, the LHA freeze is particularly acute, directly contributing to housing affordability crises and the risk of homelessness.
A DWP spokesperson defended the government's approach, stating: “As part of our Plan for Change we’re shifting our focus from welfare to work, skills, opportunities, so living standards are boosted and more people move out of poverty. We’ve also uprated benefits and changed the rules on universal credit deductions so the poorest households keep more of their benefit award.”
However, for those reliant on the frozen benefits, the reality is a tightening budget. The combination of the benefit cap, static local housing allowances, and unchanged capital limits means that many vulnerable households will find their support does not reflect rising living costs, placing further strain on already stretched finances.
