The Department for Work and Pensions (DWP) has announced updated payment rates for Universal Credit and other benefits for the 2026/27 financial year. The changes, effective from April 6, will affect approximately 8.3 million claimants.
Under the new Universal Credit Act, the standard allowance will increase above inflation, with a single claimant aged 25 or over seeing a rise to £725 per month by 2029/30 in cash terms. The DWP estimates that around four million households will benefit from an annual income increase of roughly £725.
Key changes include the standard allowance for single claimants aged 25 or over rising from £393.45 to £417.45. Joint claimants both aged 25 or over will see an increase from £628.10 to £666.97. The limited capability for work and work-related activity amount will be £217.26, while a new rate of £429.80 applies for pre-2026 claimants, those meeting severe conditions criteria, or the terminally ill.
The DWP stated that the rebalancing of health and standard elements within Universal Credit is necessary to address a 'fundamental imbalance in the system which creates perverse incentives that drive people into dependency'. Claimants should note that most benefits are paid in arrears, meaning the new rates will not appear in bank accounts until May at the earliest.
