What Changes to Universal Credit Are Coming in 2026?

Universal Credit is undergoing significant reform beginning in April 2026, marking one of the most substantial changes since its introduction. But what exactly is changing, and who will it impact most?

This guide provides a detailed breakdown of the confirmed updates, including how the standard allowance will rise, what’s happening to the health-related elements, and who is protected under the new legislation.

Whether you’re an existing claimant or considering applying for Universal Credit in the future, understanding these changes is vital.

What Is Prompting the Universal Credit Changes in April 2026?

The Universal Credit changes arriving in April 2026 are driven by the newly introduced Universal Credit Act 2025, designed to rebalance the welfare system.

The government argues that the current structure creates uneven support, particularly through the Limited Capability for Work and Work-Related Activity (LCWRA) element, which provides extra financial help for those unable to work due to health conditions.

Government assessments show that many receiving LCWRA are not moving towards employment, raising concerns about long-term dependency. As a result, the new reforms aim to shift financial emphasis toward the standard allowance, which is given to all claimants, while tightening access to health-related additions for new applicants.

This “rebalancing” approach seeks to simplify the system, encourage fairness, and ensure support reaches those most in need.

How Will the Standard Allowance for Universal Credit Increase?

One of the cornerstone changes in 2026 is the above-inflation increase in the standard allowance, which applies to all Universal Credit claimants.

This uplift is designed to offer a more robust baseline of support for every eligible individual, regardless of their personal circumstances.

Structure of Increases

The increase will begin in April 2026 and continue annually until the end of the 2029/30 financial year. By this time, the standard allowance for a single adult aged 25 or over will rise by approximately £725 per year, compared to what it would have been under standard inflation-based increases.

Claimant Type	Current Annual Allowance	Estimated Allowance by 2029/30	Increase
Single Adult (25+)	£4,812	£5,537	£725
Couple (Both 25+)	£7,800	£8,899	£1,099
Single Under 25	£3,995	£4,598	£603

These figures are approximate and based on current estimates, with adjustments expected depending on inflation and economic conditions.

What Is Happening to the LCWRA Health Element for New Claimants?

While the standard allowance is increasing, new claimants with health conditions will face reductions in their additional support through the LCWRA element.

LCWRA Element Changes

From 6 April 2026, new claimants who are assessed as having a limited capability for work and work-related activity will receive a lower LCWRA payment.

This amount will drop from the current £432.27 per month to £217.26, almost a 50% reduction. Notably, this reduced amount will be frozen and will not increase with inflation until 2029/30.

Claim Type	Monthly LCWRA (Before April 2026)	Monthly LCWRA (From April 2026)	Annual Difference
New LCWRA Claimant	£432.27	£217.26	-£2,580

This shift means that new applicants who become eligible for the LCWRA after the changes take effect will receive significantly less support than current recipients.

Who Will Be Protected from These Universal Credit Changes?

A critical aspect of the 2026 reforms is the protection of existing claimants and those with severe, lifelong health conditions.

The government has established a safeguard mechanism to ensure those already receiving the higher LCWRA amount, or those who are terminally ill or permanently unable to work, are not penalised.

Protected Groups Include:

• Existing LCWRA recipients: Individuals receiving the LCWRA element before 6 April 2026 will retain the higher monthly rate, provided their claim remains active.
• New claimants with severe, lifelong conditions: This group will continue to receive approximately £423 per month, and this amount will rise with inflation.

To be classified within this protected group, medical documentation or assessments confirming the lifelong severity of the condition is typically required.

What Should Current Universal Credit Claimants Do?

For current claimants, the upcoming changes do not necessitate immediate action, as long as their existing claim remains uninterrupted.

However, claimants should remain vigilant. Certain changes in circumstances can cause a claim to close and restart, potentially classifying the individual as a new claimant, and thus subjecting them to the reduced LCWRA rate.

Common scenarios that may affect claim continuity:

• Moving in with a partner or forming a joint claim
• Having a change in employment status
• Temporary ineligibility resulting in closure of the claim

Example 1: Sarah’s Case

Sarah, aged 34, has been receiving Universal Credit with the LCWRA element since 2023 due to a degenerative health condition. In 2026, she decides to move in with her partner, triggering a new joint claim.

As a result, her previous protection lapses, and she is reclassified under the new rules. Her LCWRA rate drops to £217.26, significantly reducing her monthly income.

What Do New Universal Credit Applicants Need to Know?

If you’re planning to apply for Universal Credit from April 2026 onwards, it’s essential to understand the new benefit structure and assess your eligibility carefully, especially if you have a health condition that impacts your ability to work.

Key advice for new applicants:

• Act promptly: If you’re currently eligible and have a long-term health issue, it may be beneficial to apply before April 2026 to secure the higher LCWRA rate.
• Seek medical evidence: For those with potentially severe or lifelong conditions, having formal documentation increases your chances of qualifying for the protected rate.
• Understand the implications: Be aware that under the new structure, standard allowance rises may not fully offset the reduced health element.

Example 2: Tom’s Case

Tom, 40, develops a serious spinal condition in late 2026. Despite his limited work capacity, he applies for Universal Credit after the reforms take effect. He qualifies for LCWRA, but because he’s a new claimant, he receives only £217.26 per month as opposed to the higher rate he might have received had he applied earlier.

How Will These Universal Credit Reforms Affect Disabled People?

The Universal Credit reforms have raised major concerns among disability rights groups, particularly the decision to halve the LCWRA element. Critics argue that the reduced payment fails to reflect the higher living costs faced by disabled people, including healthcare expenses, mobility needs, and essential daily support.

These worries come on top of existing challenges such as higher unemployment rates among disabled individuals and long waits for benefit assessments.

Although the government claims the protected group system will ensure fairness, many say the distinction between “severe lifelong” and “other” conditions creates a two-tier system that may overlook the varied realities of living with a disability.

Campaigners warn that the reforms risk deepening financial hardship for those who rely on consistent support.

Will These Changes Save the Government Money in the Long Term?

In the short term, the reforms will not produce notable savings. The government has acknowledged that due to the rise in the standard allowance and continued inflation-linked increases for protected groups, there will be no immediate cost benefit.

However, in the longer term, as more claimants come under the reduced LCWRA rate, the overall benefit expenditure will decrease. Projections estimate that by 2029/30, around 750,000 claimants will receive the lower LCWRA amount, while 2.17 million will remain protected.

Over time, as the number of protected individuals declines, either through ageing out of the system or changes in circumstances, the fiscal impact is expected to become more favourable to the government.

What Are the Broader Social and Political Reactions to These Changes?

These changes have not been universally welcomed. While some policymakers support the reforms as a means of promoting employment and simplifying the welfare system, others have raised ethical and practical concerns.

Among the chief criticisms:

• Risk of increased hardship: Lower payments for people with health conditions may push more individuals into financial difficulty.
• Administrative complexity: Determining who qualifies for the protected rate may add layers of bureaucracy and confusion.
• Equity issues: The reforms may unintentionally penalise people with fluctuating or newly diagnosed conditions.

Debate continues in public forums, with advocacy organisations urging a review of the LCWRA reductions. They argue that without adequate financial support, claimants may be forced to make difficult choices around housing, food, and healthcare.

Conclusion

The changes to Universal Credit coming in 2026 mark a shift in the UK’s welfare approach. By increasing the standard allowance and reducing the health-related elements for new claimants, the government aims to simplify benefits and encourage greater workforce participation.

However, these reforms raise concerns, especially for those with disabilities and chronic conditions. Whether you’re currently claiming or planning to apply, staying informed about these changes is essential to ensure continued eligibility and support.

Claimants should assess their circumstances and take appropriate action before the new rules come into force in April 2026. For those unsure of their status, seeking independent benefits advice is highly recommended.

Frequently Asked Questions

How do the Universal Credit 2026 changes affect joint claimants?

Joint claimants will see a proportional rise in their standard allowance, but both members must meet protection criteria individually to retain the higher LCWRA rate.

Will the Personal Independence Payment (PIP) be impacted by these changes?

No. The PIP remains separate and unaffected by the Universal Credit Act 2025 changes.

What happens if someone currently on LCWRA starts a new claim after April 2026?

They will lose their protected status unless they meet the criteria for severe, lifelong conditions and will receive the lower LCWRA rate.

Can a claimant regain their protected status if their claim is closed?

No. Once a claim is closed and restarted, it is treated as a new claim and subject to the updated rules.

Are the increases to the standard allowance the same across the UK?

Yes, these changes apply nationally across England, Scotland, Wales, and Northern Ireland.

Why is the LCWRA element being reduced so significantly?

The government aims to reduce perceived incentives for long-term work disengagement and promote re-entry into the workforce.

How will I know if I’m classified under the ‘protected’ group?

You will be notified by the Department for Work and Pensions (DWP) based on existing claim status or medical assessments.