Millions of families across the UK are set to receive a financial uplift in 2026 as the Department for Work and Pensions (DWP) rolls out major updates to Universal Credit.
The changes form part of a broader welfare reform plan aimed at reshaping the benefits system and encouraging more people into employment.
From April, several payment rates will rise, providing eligible claimants with additional income to help manage rising living costs.
Universal Credit Standard Allowance to Rise from April
The DWP has confirmed that the standard allowance for Universal Credit will increase, giving many households their first sustained above-inflation boost in years.
Single Claimants Aged 25 or Over
Currently, single claimants aged 25+ receive £400.14 per month. From April, this amount will increase to £424.90 per month.
- Monthly increase: £24.76
- Annual increase: Around £295
- Above-inflation uplift: Approximately £110
The government estimates that this boost could grow to £760 by the end of the decade. Nearly four million households receiving the standard rate are expected to benefit from this change.
According to the DWP, the increase ensures those both searching for work and currently employed will have more financial support while progressing in their careers.
Single Claimants Under 25
Younger claimants will also see higher payments.
- Current rate: £316.98 per month
- New rate from April: £338.58 per month
- Monthly increase: £21.60
- Annual increase: Around £259
This adjustment aims to provide additional cost-of-living relief to younger adults relying on Universal Credit.
Universal Credit Rates for Couples
Payment increases will also apply to couples claiming Universal Credit.
Couples Under 25
- Current joint rate: £497.55 per month
- New rate: £528.34 per month
- Monthly increase: £30.79
- Annual increase: Around £369
Couples Aged 25 or Over
- Current joint rate: £628.10 per month
- New rate: £666.97 per month
- Monthly increase: £38.87
- Annual increase: Around £466
These increases aim to strengthen household budgets amid ongoing economic pressures.
Changes to the Universal Credit Health Element
In addition to standard allowance adjustments, reforms also affect the Universal Credit health element.
Lower Health Element for New Claimants
From April, new health-related claimants will receive a lower monthly rate of:
- £217.26 per month
Higher Rate Protection for Existing and Vulnerable Claimants
Those with the most severe lifelong conditions, individuals nearing end of life, and existing health element claimants will continue to receive the higher payment.
The higher rate will increase from:
- £423.27 to £429.80 per month
- Monthly increase: £6.53
- Annual increase: Around £78
The DWP has stated that these changes are designed to balance financial support with incentives that encourage employment progression.
Government’s Position on the Reforms
The DWP describes the reforms as a move to “rebalance the benefits system.” Officials argue that the updated structure offers stronger employment support while ensuring those able to work are encouraged to do so.
Work and Pensions Secretary Pat McFadden stated that the revised system provides greater backing for working claimants and invests in employment assistance to help people secure stable jobs. The aim, according to the government, is to reward work and raise overall living standards.
How the 2026 Universal Credit Changes Impact Households
These adjustments represent the first sustained above-inflation increase in the standard allowance for many recipients. With nearly four million households benefiting, the financial boost is positioned as part of a wider cost-of-living strategy.
For single claimants aged 25 or over, the additional £295 annually could help cover essential expenses such as food, utilities, and transportation. Over time, the projected £760 uplift by the end of the decade may provide further relief.
At the same time, the introduction of a lower health element rate for new claimants signals a policy shift toward encouraging workforce participation, while protecting vulnerable groups who require continued higher-level support.
Conclusion
The 2026 Universal Credit reforms mark a significant adjustment to the UK benefits system. With payment increases across multiple claimant categories, millions of households will see meaningful financial support from April. The estimated £295 annual boost for single claimants aged 25 and over represents an above-inflation rise designed to help ease cost-of-living pressures.
While the reforms introduce a lower health element rate for new applicants, existing and severely ill claimants will retain higher levels of support. Overall, the changes reflect the government’s effort to combine financial assistance with stronger work incentives, shaping a benefits structure focused on employment progression and improved living standards.
Frequently Asked Questions
1. When will the new Universal Credit rates take effect?
The updated payment rates will begin from April 2026.
2. How much extra will single claimants aged 25 or over receive?
They will receive approximately £24.76 more per month, totaling around £295 extra per year.
3. Will existing health element claimants lose money?
No. Existing claimants and those with severe or lifelong conditions will continue receiving the higher rate.