The Department for Work and Pensions (DWP) has announced new payment rates for Universal Credit for the 2026/27 financial year, affecting 8.4 million claimants. The annual uplift will take effect from April 6, with nearly four million households expected to see an annual income increase of approximately £725 under the new Universal Credit Act.
The Universal Credit Act introduces changes to the core payment and health top-up, permanently increasing the standard allowance above inflation. For a single person aged 25 or over, this equates to an additional £725 per year in cash terms by 2029/30. The DWP states that these reforms aim to address what it describes as a 'fundamental imbalance' in the system that creates perverse incentives driving people into dependency.
Most benefits, including Universal Credit, are paid in arrears, meaning claimants will not receive the full new amount until after the first payment cycle following April 6. Consequently, most Universal Credit claimants will not see the updated rates in their bank accounts until May at the earliest.
The full list of additional elements and deductions for Universal Credit payments is available on the GOV.UK website. The DWP has confirmed that the rebalancing of health and standard elements will correct the inherent imbalance in the system.
