Millions of Universal Credit claimants in the UK are set to receive an above-inflation income boost starting April 2026, following new government legislation.
This increase will raise the standard Universal Credit allowance by 6.2%, a rise based on the September 2025 inflation rate of 3.8% plus an additional 2.3% uplift introduced by the government.
Universal Credit set to rise to roughly £400 more per year
For a single adult aged 25 or over, this means an increase from £92 to £98 per week, while couples with one or both partners over 25 will see their weekly payment rise from £145 to £154. Overall, this boost amounts to roughly £400 more per year for the average claimant.
This change is part of a broader welfare reform announced in July 2025, designed to increase the Universal Credit standard allowance above inflation each year until 2029.
However, the benefit increase has been criticised for arriving at a difficult time for families dependent on these payments, as many still struggle to cover essentials like food and heating despite the boost.
While the core Universal Credit standard allowance will rise, the health-related element of Universal Credit, which supports claimants with long-term disabilities or health conditions, will face significant cuts.
Existing claimants will have this additional rate frozen at £97 per week until 2029/30, whereas new claimants from April 2026 will have this component reduced nearly by half to £50 per week. These claimants will still receive the increased standard allowance but with a smaller health element payment.
Other benefits such as Personal Independence Payment (PIP) and Carer’s Allowance will see inflation increases
Other benefits, such as Personal Independence Payment (PIP) and Carer’s Allowance, will see increases aligned solely with inflation, predicted to rise by 3.8%. PIP’s daily living and mobility rates will be adjusted accordingly, while Carer’s Allowance, granted to individuals caring for someone at least 35 hours a week, will also increase in line with inflation.