UK households claiming Universal Credit are receiving an average of £1,030 per month, according to the latest DWP statistics. This figure, which covers all household types, highlights the varying amounts paid depending on family circumstances.
Average payments by family type
The DWP's Universal Credit statistics to January 2026 reveal that the average payment differs significantly across family types. For November 2025, single claimants without children received the lowest average at £800 per month, while couples with children saw the highest average at £1,310. The overall mean payment across all households stands at £1,030.
These averages include not only the standard allowance but also additional elements for children, limited capacity for work, childcare costs, and work allowances. For context, the standard monthly payment for a single person under 25 was £316.98 last year, rising to £338.58 in April.
Claimant numbers and employment
As of January 2026, 8.4 million people were claiming Universal Credit, up from 7.4 million the previous year. This increase includes 1.7 million claimants added in December 2025 as part of migration from other benefits. Notably, 32% of claimants were in work, with 2.7 million employed as of December 2025.
The DWP noted: “Universal Credit is available to people on a low income as well as those who are out of work.”
Government's cost-of-living focus
Prime Minister Andy Burnham has prioritised the cost of living, announcing a six-month VAT cut on electricity and reduced VAT for pubs and clubs. However, he faces warnings that spending commitments may require cuts elsewhere, including welfare.
The National Institute of Economic and Social Research (Niesr) cautioned that the government will be squeezed by persistent inflation linked to the Iran war. Stephen Millard, Niesr's deputy director for macroeconomics, argued that cost-of-living support measures are not the “answer” and that it is the “Bank of England’s job to hit the inflation target”.
Millard added: “There’s clearly no scope for increasing borrowing, so it is about choices. I’m yet to be convinced that how these things will be funded has been fully thought through, but there is going to be a budget in October. Our advice would very much be to fund these through higher taxes – which could involve tax reform rather than higher marginal rates – or cuts in spending elsewhere.”
Welfare reform challenges
Previous attempts to reduce welfare spending have met resistance. Former prime minister Sir Keir Starmer's plan to cut £5 billion from welfare last year was abandoned after a backbench rebellion. Mr Burnham has ruled out “a kind of crude approach, crude cuts to benefits to get the welfare bill down”, stating that such cuts “often just pushes people into even more crisis and then even more public spending in another part of the system”.
He emphasised: “We need a system that sets people up for success rather than pays for failure.”
