The Government has confirmed a significant increase to Universal Credit payments, offering a financial boost to millions of households across the UK from next April.
A Significant Above-Inflation Rise
Claimants will receive a generous 6.2% rise in their standard allowance, a move designed to outpace the current inflation rate of 3.2%. This forms part of a wider overhaul of the welfare system under the Labour government.
For a single claimant aged 25 or over, this translates to an extra almost £25 each month. The new payment rates are scheduled to come into effect from April 2026.
Wider Welfare Changes: Gains and Cuts
In a parallel policy shift, Labour is also scrapping the controversial two-child benefit cap. This change will allow parents with larger families to claim hundreds of pounds in additional support annually, a policy that has drawn criticism from opponents concerned about welfare spending.
However, the shake-up is not universally positive. The government is implementing cuts focused on disability payments. For new claimants, the Universal Credit health top-up, known as the Limited Capability for Work-Related Activity (LCWRA) element, is being reduced by almost half.
What This Means for Claimants
Charity Citizens Advice has outlined the practical impact. A monthly Universal Credit payment consists of a standard allowance plus any additional amounts based on personal circumstances.
The organisation stated: "The amount of Universal Credit you get will change. This is because the Universal Credit 'standard allowance' is increasing." It also warned that those who might become eligible for the LCWRA element after April 2026 will receive the decreased amount.
This dual approach of increasing core allowances while reducing specific disability top-ups marks a significant recalibration of the UK's welfare safety net, creating a complex picture of winners and losers from the upcoming changes.
