Is Universal Credit Going Up in 2026? A Comprehensive Look at the Latest Changes

Table of Contents

Universal Credit is set to undergo major updates starting April 2026, directly affecting millions of claimants across the UK.

With the cost of living continuing to rise, the government has committed to increasing the standard allowance annually above the rate of inflation until 2029/30. However, not all changes bring good news.

While the basic payment will rise, certain health-related elements like LCWRA will be reduced for new claimants. This blog explores what these changes mean for you, who will benefit, and how the welfare system is evolving.

What Is the Universal Credit Standard Allowance and How Will It Change?

Universal Credit’s standard allowance is the core payment provided to claimants, which varies based on age and household status. From April 2026, this standard allowance is confirmed to increase above inflation each year until at least 2029/30.

This uplift is designed to help low-income individuals and families manage rising expenses more effectively. The government’s strategy is focused on improving financial support and gradually reducing poverty levels across working-age households.

These yearly increases are structured to ensure the value of payments keeps pace with economic pressures, providing long-term income growth for most recipients.

Is Universal Credit Going Up in 2026?

Yes, Universal Credit is increasing in 2026. The uplift focuses primarily on the standard allowance, giving claimants a higher monthly amount regardless of other circumstances. This rise is part of a long-term plan to adjust benefits above inflation, ensuring that financial support remains responsive to economic demands.

The increase applies automatically for all eligible recipients from April 2026, without needing to reapply or submit additional forms.

Key updates include:

Annual increases to standard allowance until 2029/30
Automatic adjustments to payments from April 2026
Higher support for claimants without additional health components

This means that, overall, Universal Credit will provide a more stable and supportive income stream for many.

What Are the Exact Increases Between 2026 and 2030?

The planned increases to the standard allowance are aimed at reducing the gap between earnings and living expenses. These figures represent projected rates for various groups.

Projected Universal Credit Standard Allowance Rates:

Year	Single (25+)	Couple (Both 25+)	Under 25 (Single)	Under 25 (Couple)
2025/26	£368.74	£578.82	£292.11	£458.51
2026/27	£388.00	£608.00	£307.00	£479.00
2027/28	£405.00	£635.00	£320.00	£497.00
2028/29	£422.00	£662.00	£334.00	£516.00
2029/30	£443.00	£690.00	£349.00	£537.00

These figures are approximations based on government statements and projections and may be updated in future announcements.

When Will the New Universal Credit Payments Begin?

The increased Universal Credit standard allowance payments are scheduled to start in April 2026. This marks the first step in a multi-year uplift plan.

Once implemented, the adjusted payments will appear in the monthly disbursements without requiring any additional action from claimants. For clarity:

Existing recipients will automatically receive the new rates
New applicants from April 2026 will begin on the updated allowance
Annual increases will continue until 2029/30

The final updated payment structure will likely be confirmed closer to the start date in late 2025.

Will These Universal Credit Changes Be the Same Across the UK?

Universal Credit changes will apply differently depending on where you live in the UK. The core adjustments to the standard allowance and LCWRA element are implemented across England, Wales, and Scotland under UK government policy.

However, the devolved governments in Scotland and Northern Ireland hold powers to vary welfare rules in some areas.

Here’s how this plays out:

England and Wales: Full changes apply
Scotland: ADP (Adult Disability Payment) replaces PIP, but UC follows UK law
Northern Ireland: Has its own executive, which may choose to adopt changes differently

These geographical variations mean claimants should check regional guidance to understand their specific eligibility and entitlements.

Who Will Benefit Most from the Universal Credit Rise?

The increase to Universal Credit will benefit a wide range of households. However, some groups will experience more significant improvements in their income due to the structure of the new allowance system.

Key Beneficiary Groups

Beneficiary Type	Reason for Greater Benefit
Single Adults Over 25	Receive highest standard allowance increase
Low-Income Working Families	Benefit from work incentives and uplift
Couples with Children	Extra support from childcare elements
Non-health-related Claimants	Get full standard allowance uplift

Those already claiming the LCWRA element will not see major changes in this category but will retain their full payments with inflationary increases.

How Will the LCWRA Element Be Affected from April 2026?

One of the most significant changes relates to the Limited Capability for Work and Work-Related Activity (LCWRA) element. While the standard allowance is going up, the LCWRA element is being reduced for new claimants from April 2026.

Current Rate: £423.27/month
New Rate (Post-April 2026): £217.26/month
Applies To: New claimants only

Breakdown of Impact:

Existing claimants will continue to receive the current, higher LCWRA rate
People with lifelong or severe conditions can still qualify for the full rate
New claimants without severe conditions will receive the lower LCWRA rate
The new rate will be frozen until 2029/30, with no planned inflationary increases

If you believe you qualify for LCWRA, it’s advised to apply before April 2026 to lock in the higher rate.

How Will Other Benefits Like PIP and ESA Be Affected (If At All)?

While Universal Credit is changing significantly, other benefits are affected to different extents. Here’s what to expect:

Personal Independence Payment (PIP)

Not impacted by the Universal Credit Act 2025
Proposed changes may be introduced in November 2026
Future assessments may become more rigorous for new claimants

Employment and Support Allowance (ESA)

ESA will eventually be merged into “unemployment insurance”
This change is expected to happen in 2028
New unemployment insurance will be:
- Time-limited
- Based on National Insurance contributions
- Integrated with Universal Credit after time limit ends

These benefits will evolve separately from the Universal Credit standard allowance system, but will align more closely in future.

Will the Government Continue to Review Universal Credit Payment Rates?

Yes, the government has committed to continuing annual reviews of Universal Credit rates beyond 2026.

The focus is on aligning payments with inflation and addressing the cost of living. These adjustments ensure recipients don’t experience a decline in real-term income.

Reviews will occur annually
Adjustments will be linked to economic indicators
Certain components (like the LCWRA post-2026 for new claims) may be frozen
Severe and lifelong conditions will still benefit from inflation protection

This forward-looking policy helps preserve the value of financial support across the board.

What Does the Future of Universal Credit Look Like?

Universal Credit is expected to continue evolving beyond 2026. Some proposals are already in development, such as:

Right to Try: A proposal that allows people to trial employment without triggering benefit reassessments
Youth Guarantee: A programme designed to support under-22s with training and work opportunities before they can claim the health element
Work Capability Assessment Changes: These assessments may be replaced by 2028 with PIP-based evaluations

The welfare system is being restructured to better support those in need, while also encouraging employment and personal independence where possible.

Conclusion

Universal Credit is undeniably going up in 2026, offering welcome relief for many across the UK. While the standard allowance increases above inflation bring broad benefits, the reduction in LCWRA for new claimants creates urgency for those eligible to apply now.

With other benefits undergoing separate reforms, staying informed is vital. The next few years will redefine the landscape of social support, aiming to balance fairness, affordability, and sustainability.

Frequently Asked Questions

Can You Still Get the Health Element If You Apply After April 2026?

Yes, but the amount will be significantly lower for most new claimants unless they have severe or lifelong conditions.

What Is the Youth Guarantee and How Will It Affect Young Claimants?

The Youth Guarantee encourages people under 22 to pursue work or training before qualifying for health-related support.

Will the LCWRA Rate Keep Increasing After 2026?

Only for existing claimants. New claimants after April 2026 will receive a frozen rate until at least 2029/30.

How Will the ‘Right to Try’ Proposal Affect Your Health-Related Benefits?

It allows claimants to try out a job without triggering reassessments or risking loss of benefits.

Are Reassessments Still Required for Lifelong Conditions?

No, people with permanent and severe conditions will be exempt from future reassessments.

Is the Benefit Cap Changing Alongside These Adjustments?

As of now, there are no announced changes to the benefit cap in 2026.

Where Can You Get Help Understanding the New Rules?

You can contact local benefit advisers or support organisations for personalised guidance.