The Department for Work and Pensions (DWP) has confirmed how much Universal Credit payments will increase by in April next year, with the standard allowance rising by around 4.3 per cent. The rise gives single people aged 25 or over an extra £220 a year, while those under 25 receive around £183 more.
Around 8.4 million people claim Universal Credit in the UK, according to the latest figures. The means-tested benefit, paid monthly, is available to people on a low income or not working, with claimants receiving a standard monthly allowance that can be topped up for circumstances such as having children, being a carer, having a health issue or needing help with rent.
How the uprating works
Benefits are uprated annually, usually in line with inflation, which was 3.5 per cent this September. The State Pension, determined by the triple lock, has risen by 3.9 per cent for next year in line with earnings growth.
However, Universal Credit uprating changed after the Universal Credit Act 2025. Under the new rules, rates are being 'rebalanced' by increasing the basic standard allowance all claimants receive while reducing additional payments such as the health element.
New rates from April 2027
The standard allowance must increase above inflation over the four financial years from 2026/27, reaching 4.8 per cent higher than it would have been under normal CPI-linked practice by 2029/30. This year, the rise must leave the rate 3.1 per cent above inflation, rising to 4 per cent the following year.
The new monthly standard allowance rates are: single under 25 rising from £338.58 to £353.87; single 25 or over rising from £424.90 to £443.21; couples both under 25 rising from £528.34 to £551.11; and couples with one or both 25 or over rising from £666.97 to £695.71.
Child elements rise to £364.20 for the first child born before 6 April 2017 and £314.58 for subsequent children. Disability additions rise to £170.56 (lower rate) and £532.72 (higher rate). The higher-rate health element rises to £441.41, while the lower-rate health element remains frozen at £217.26 and the pre-2017 limited capability for work element stays at £158.76. The carer's element rises to £216.67, and non-dependants' housing cost contributions rise to £99.93. Work allowances rise to £735 (higher) and £442 (lower).
