Millions of people claiming Universal Credit across the UK will face a significant delay in receiving increased payments, despite official rates rising above inflation from April 13. This delay affects nearly eight million claimants who rely on the benefit, highlighting a bureaucratic gap between policy changes and actual disbursement.
Understanding the Payment Delay Mechanism
The Universal Credit standard allowance, which forms the base amount before any deductions or additional elements, is set to increase from April 13. For instance, a single claimant aged 25 or over will see their monthly standard allowance rise from £400.14 to £424.90. However, due to the payment structure of Universal Credit, claimants will not notice this increase in their bank accounts until June.
How Assessment Periods Impact Payments
Universal Credit is paid in arrears, meaning payments are calculated based on assessment periods that typically span a month. The higher rates will only apply to assessment periods that start on or after April 13. Since payments are made one week after the end of each assessment period, the new rates will not take effect until June payments are processed.
Your assessment period is crucial as it determines your Universal Credit amount, factoring in earnings, deductions, and personal circumstances such as age, living arrangements, relationship status, income, savings, and health conditions.
Key Changes in Universal Credit Rates for 2026/27
The updated payment rates reflect an above-inflation increase, with notable adjustments across various claimant categories:
- Single Claimants: Under 25: £338.58 a month (up from £316.98); 25 or over: £424.90 a month (up from £400.14).
- Couples: Joint claimants both under 25: £528.34 a month (up from £497.55); one or both 25 or over: £666.97 a month (up from £628.10).
- Child Amounts: First child born before April 6, 2017: £351.88 a month (up from £339); first child born on or after that date or subsequent children: £303.94 a month (up from £292.81).
- Limited Capability for Work: Amount remains at £158.76 a month for some, while new claimants see £217.26 a month, and pre-2026 claimants with severe conditions get £429.80 a month.
- Carer Amount: Increases to £209.34 from £201.68.
Work Allowances and Taper Rate Details
For those who work, a taper rate of 55% applies, meaning 55p is deducted from the maximum Universal Credit payment for every £1 earned above certain thresholds. The work allowance, which allows earnings before reductions kick in, has also been adjusted:
- Higher work allowance (no housing amount) for those with dependent children or limited capability: £710 a month (up from £684).
- Lower work allowance in similar circumstances: £427 a month (up from £411).
Eligibility for Universal Credit is assessed based on individual circumstances, including factors like physical and mental health, which can influence payment amounts and additional elements.
Implications for Claimants and Next Steps
This delay means that millions of low-income households will have to wait an extra two months to benefit from the increased rates, potentially straining budgets during a period of economic uncertainty. Claimants are advised to plan their finances accordingly and consult official resources on GOV.UK for the full list of additional elements, deductions, and specific eligibility criteria.
The Department for Work and Pensions (DWP) has confirmed these changes, emphasizing that the rise is designed to outpace inflation, but the payment schedule remains tied to assessment periods. As Universal Credit continues to support a vast segment of the population, understanding these timelines is essential for effective financial management.
