Millions of households across the United Kingdom are poised to receive a significant uplift in their Universal Credit payments starting in April 2026. The Department for Work and Pensions (DWP) has confirmed a series of changes that will affect the 7.5 million people currently claiming the benefit.
Key Changes to Universal Credit from April 2026
The forthcoming adjustments stem from the government's annual uprating and the implementation of the Universal Credit Act 2025. The most impactful change is the abolition of the controversial two-child limit. From April 2026, the DWP will make extra payments for third and subsequent children, a move set to benefit many larger families. It is crucial to note, however, that the overall benefit cap will remain in place.
Furthermore, the standard allowance for all claimants will see a 2.3% increase. This forms part of a wider package of rate rises across numerous DWP benefits and allowances designed to help with the cost of living.
New Universal Credit Payment Rates for 2026/27
The government has published its proposed new rates, which are scheduled to take effect at the start of the new financial year. Here is a breakdown of the key increases:
Standard Allowance:
- Single, under 25: Rising from £316.98 to £338.58
- Single, 25 or over: Rising from £400.14 to £424.90
- Couple, both under 25: Rising from £497.55 to £528.34
- Couple, one or both 25 or over: Rising from £628.10 to £666.97
Child Amounts:
- First child (born before 6 April 2017): Rising from £339.00 to £351.88
- First child (born on/after 6 April 2017) and subsequent children: Rising from £292.81 to £303.94
Additional Elements:
- Carer amount: Increasing from £201.68 to £209.34
- Higher rate disabled child addition: Rising from £495.87 to £514.71
- Maximum childcare costs for one child: Rising from £1,031.88 to £1,071.09
A notable change affects the Limited Capability for Work and Work-Related Activity (LCWRA) amount. For new claimants from April 2026, the rate will be set at £217.26. However, pre-2026 claimants, those meeting severe conditions criteria, or the terminally ill will see an increase from £423.27 to £429.80.
What This Means for Claimants
The combined effect of these changes represents a substantial financial boost for millions. The removal of the two-child limit is a major policy shift that will directly increase support for families with three or more children. Alongside the across-the-board percentage increase, the higher work allowances mean some claimants will be able to earn more before their Universal Credit begins to be reduced.
With an average of 47,000 new claims being made each week, these updated rates will impact a significant portion of the UK population. The increases are a critical component of the government's support framework for low-income households and those out of work, providing essential assistance amid ongoing economic pressures.
