Millions of households across the United Kingdom are poised to receive a significant uplift in their monthly income from the Department for Work and Pensions (DWP). From April 2026, Universal Credit payment rates will increase, offering vital financial support to the 7.5 million people currently claiming the benefit.
Key Changes to Universal Credit Rates
The government has confirmed that the standard allowance for Universal Credit will rise by 2.3% across all claimant groups. This forms part of wider annual uprating, but the coming year also includes a landmark policy shift. The controversial two-child limit, which previously restricted support to the first two children in a family, will be abolished from April 2026. This means parents will be eligible for extra payments for their third and subsequent children, although the overall benefit cap will remain in place.
New Payment Rates for 2026/27
The proposed new rates, set to take effect from the start of the new financial year, are detailed below. These figures represent a direct increase for the vast majority of claimants.
Standard Allowance:
- Single, under 25: Rising from £316.98 to £338.58
- Single, 25 or over: Rising from £400.14 to £424.90
- Couple, both under 25: Rising from £497.55 to £528.34
- Couple, one or both 25 or over: Rising from £628.10 to £666.97
Child Amounts:
- First child (born before 6 April 2017): Increasing to £351.88
- First child (born on/after 6 April 2017) and subsequent children: Increasing to £303.94
Additional Elements:
Other components of the benefit will also see rises. The carer amount increases to £209.34, while support for childcare costs sees a notable jump. The maximum for one child rises to £1,071.09 and for two or more children to £1,836.16. The higher rate disabled child addition increases to £514.71.
Impact and Considerations for Claimants
These changes, driven by the Universal Credit Act 2025, will provide welcome relief for families grappling with the cost of living. The removal of the two-child limit is a particularly substantial reform, potentially supporting larger families who have previously been excluded from full support.
However, it is crucial for claimants to be aware that the overall benefit cap continues to apply. This means total household benefits cannot exceed a certain threshold, which may limit the full impact of the increases for some. The government has also confirmed that the Limited Capability for Work amount will remain frozen at £158.76.
With an average of 47,000 new claims being made each week, these updated rates will affect a significant and growing portion of the UK population. The April 2026 changes mark one of the most substantial adjustments to the Universal Credit system in recent years.
