Universal Credit claimants are set to receive increased payments starting from May or June 2026, depending on their assessment period. The Department for Work and Pensions (DWP) raised benefit rates in April, but due to the 'first full period' rule, the increase may not appear until the next assessment period begins.
The annual benefit rate increase took effect on April 6, 2026. However, Universal Credit payments are calculated over monthly assessment periods. Claimants whose assessment period started before April 7 will see the higher rate in their June payment, while those with periods starting after that date will receive it in May.
For example, a claimant with an assessment period starting April 4 will receive the old rate in May, and the new rate in June. In contrast, someone with a period starting April 8 will get the increase in May. The standard rate increase is approximately 6.1%, comprising the usual inflation-linked rise of 3.8% plus an additional 2.3% to rebalance Universal Credit rates.
Parliamentary papers indicate that this adjustment aims to boost the basic standard allowance while reducing extra payments for new claimants with disabilities or health conditions. By 2029/2030, the standard allowance is expected to be 4.8% higher than under normal rules.
