The Department for Work and Pensions has confirmed that the Universal Credit standard allowance for single claimants aged 25 and over will rise by around £219 a year from 2027, with couples where one member is aged 25 or over receiving approximately £344 more annually.
Announcement in the House of Lords
The increase was announced in the House of Lords by Baroness Sherlock on behalf of Andy Burnham's cabinet, following the Autumn Budget delivered by the Labour Party government. The peer said the rises are above inflation, with the single person's allowance increasing by over £45 more than if up-rated by inflation alone, and the couple's rate by approximately £71 more.
Baroness Sherlock 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."
Details of the increase
"That's over £45 more than if up-rated by inflation alone. For couples, where one member is aged 25 or over, it will increase by around an additional £344 a year," she added. "That's approximately £71 more than if up-rated 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."
The majority of these increases will apply across Great Britain, except for Personal Independence Payment and other benefits to help with additional needs arising from disability, and the rate of Carer's Allowance, which will only apply to England and Wales. In Scotland, these are devolved matters.
Other benefits and rates
Baroness Sherlock noted that all social security, including State Pensions, is a transferred matter in Northern Ireland. She also confirmed that Local Housing Allowance rates and the benefit cap will be maintained at their current levels and not increased for 2027-28.
The full list of proposed State Pension and benefit rates for 2027-28 will be placed in the Libraries of both Houses and on GOV.UK in due course.
