DWP pronounces new April 2026 Universal Credit cost charges
Universal Credit claimants will see their payments go up in two months
Most Universal Credit claimants will not see the new payment rates appear in their bank accounts until May(Image: Westend61 via Getty Images)
The Department for Work and Pensions (DWP) has unveiled the proposed new 2026/27 payment rates for those receiving the State Pension or benefits. This covers the fresh payment sums for 8.4 million people claiming Universal Credit.
In addition to the annual uprating from April 6, the DWP predicts almost four million households will receive an annual income increase of approximately £725 through the new Universal Credit Act. Changes outlined in the Universal Credit Act aim to rebalance the core payment and health top-up within Universal Credit. The Act will ensure the Universal Credit standard allowance rises permanently above inflation, totalling £725 by 2029/30 in cash terms for a single person aged 25 or over.
Complete information on all the new payment rates for benefits administered by the DWP is available on GOV.UK. It’s crucial to note that most benefits, including Universal Credit, are paid in arrears, which means the majority of claimants will not receive the full new sum until after the first payment cycle following April 6 has been completed, reports the Daily Record.
This means the bulk of Universal Credit claimants will not see the new payment rates appear in their bank accounts until May, at the earliest.
Universal Credit payment rates 2026/27
Single Claimants
- Under 25: £338.58 (from £316.98)
- 25 or over: £424.90 (from £400.14)
Couples
- Joint claimants both under 25: £528.34 (from £497.55)
- Joint claimants, one or both 25 or over: £666.97 (from £628.10)
Child Amounts
- First child (born prior to April 6 2017): £351/88 (from £339)
- First child (born on or after April 6 2017 / second child and subsequent child (where an exception or transitional provision applies)): £303.94 (from £292.81)
Limited Capability for Work
- Limited Capability for Work amount: £158.76 (no change)
- Limited Capability for Work and Work-Related Activity amount: £217.26 (from £423.27)
- Limited Capability for Work and Work-Related Activity amount (Pre-2026 claimant, severe conditions criteria claimant or claimant who is terminally ill): £429.80
Carer amount: £209.34 (from £201.68)
Work allowances
- Higher work allowance (no housing amount) – One or more dependent children or limited capability for work: £710.00 (from £684.00)
- Lower work allowance – One or more dependent children or limited capability for work: £427.00 (from £411.00)
The full list of additional elements and redactions or deductions for Universal Credit payments can be found on GOV.UK.
Measures in the Universal Credit Act
The DWP said rebalancing of Universal Credit health and standard elements to address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency through:
- Increasing the Universal Credit standard allowance above inflation for the next four years – worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
- Reducing the health top-up for new claims to £50 per week from April 2026.
- Ensuring all existing recipients of the Universal Credit health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher Universal Credit health payment after April 2026.
- Exemptions from reassessment for those with the most severe, lifelong conditions.
The DWP said the reforms will address the ‘fundamental imbalance in the system which creates perverse incentives that drive people into dependency’.
