Universal Credit claimants aged 25 and over are set to receive a confirmed cash boost of up to £219 per year from April, following a 3.5% increase in benefit rates announced after the Budget.
Chancellor John Healey delivered his first Budget on October 28, pledging to give families and businesses “breathing space” from rising costs. The measures included action on rising energy costs, higher wages for workers, and an extension of the 5p cut to fuel duty.
Alongside these measures, State Pension and benefit rates have been reviewed and are due to rise from April. Universal Credit is among the benefits that will be uplifted in the 2027 to 2028 tax year, with the Government confirming a 3.5% boost.
How the increase is calculated
The 3.5% increase is in line with the Consumer Price Index increase for the year to September 2026 and will apply to most working-age benefits and to benefits for people below State Pension age.
Under the Universal Credit Act 2025, which sets the April 2027 minimum allowance, the 3.5% increase will see rates rise from £424.90 per month for single people aged 25 and over to around £443.21 per month from April. This gives eligible claimants an annual cash boost of around £219 in the 2027 to 2028 tax year.
For couples aged 25 and over, the rate will also rise by 3.5%, taking payments from £666.97 per month to around £695.71 from April, giving claimants around £344 extra cash per year.
Government statement on the uplift
Secretary of State for Work and Pensions Pat McFadden said: “The Universal Credit Act 2025 removed the standard allowance and health elements of Universal Credit, as well as their employment and support allowance equivalents, from my review. The Act delivered important changes to rebalance Universal Credit to tackle perverse incentives in the system.
“The UC standard allowance for a single person aged 25 or over will increase by around £219 a year. That is over £45 more than if uprated by inflation alone.
“For couples, where one member is aged 25 or over, it will increase by around an additional £344 a year. That is approximately £71 more than if uprated by inflation alone.
“These changes narrow the gap between the standard rate of Universal Credit and the health-related element, helping to strengthen incentives to move into and progress in work.”
Who can claim Universal Credit
Universal Credit can be claimed by people on a low income, people out of work, or people unable to work, to help with everyday living costs. It is paid by the Department for Work and Pensions (DWP) every month, and the amount you get is based on your circumstances each month, which are known as ‘assessment periods’.
To get Universal Credit payments, you must accept an agreement called a ‘claimant commitment’, which is a record that you agree to prepare for and look for work, and increase your earnings if you’re already working. If you live with a partner, you both have to claim Universal Credit and you’ll each have your own claimant commitment, and you must do everything you agree to in your commitment or payments could be reduced or stopped.
