Charities have issued a stark warning that hundreds of thousands of benefit claimants will continue to face severe financial hardship, despite a planned increase in payments scheduled for April 2026.
The Uplift That Falls Short
From April next year, the standard allowance for Universal Credit is set to rise by approximately 6.2%. This increase combines a legislated 2.3% uplift under the Universal Credit Act 2025 with the previous September's inflation rate of 3.8%.
However, leading anti-poverty organisations argue this rise is insufficient. They state the increase fails to bridge the gap between benefit levels and the real cost of basic necessities like food and energy.
Calculating the Real Cost of Survival
Analysis by the Joseph Rowntree Foundation reveals the stark reality of the shortfall. They calculate that after the April rise, a single person will receive about £98 per week in standard allowance.
This figure is £22 less than the £120 per week the charity estimates is required for basic survival. This translates to an annual deficit of at least £1,000 for single claimants.
The situation is even more severe for couples. Their new weekly allowance of around £154 will be £51 short of the £205 needed for essentials, creating an annual gap of approximately £2,500.
Frozen Payments and Swallowed Increases
The problem is compounded for specific groups. Charities point out that other crucial support, including disability benefits and the child element of Universal Credit, are only due to rise by the 3.8% inflation rate.
Experts warn these modest increases will be completely consumed by soaring rents and energy bills, which have risen at a much faster pace.
Furthermore, the charity Turn2us highlights a critical issue affecting around 600,000 households on transitional protection. These households will see no increase at all because their payments are frozen, having been moved from older, higher-value benefits.
In response to this growing crisis, there are now urgent calls for the government to implement an Essentials Guarantee. This would be a legal measure to ensure that Universal Credit always covers the fundamental costs of food, utilities, and other basic needs.
Government Focus on Employment
The Department for Work and Pensions (DWP) has defended its approach. A spokesperson stated their priority remains helping people move from welfare into secure employment.
They maintain that sustaining the main rate of Universal Credit above inflation is a key component of their broader Plan for Change strategy. The debate underscores the ongoing tension between providing an adequate safety net and government policies aimed at reducing welfare dependency.
