The Department for Work and Pensions (DWP) has officially announced a significant increase in Universal Credit payments, set to take effect from April 2026. This uprating will provide a financial boost to millions of claimants across the United Kingdom, with particular changes for families.
Key Changes to Universal Credit in 2026
The government has confirmed that Universal Credit standard allowances will rise across all claimant categories in the 2026/27 financial year. This increase is in line with the Consumer Prices Index (CPI) and includes an additional uprating factor. Official data reveals that a substantial 7.5 million people are currently receiving Universal Credit, meaning the changes will have a widespread impact.
In a major policy shift, the controversial two-child limit will be abolished from April 2026. This rule currently restricts extra Universal Credit support to the first two children in a family. Its removal means that parents will receive additional payments for third and subsequent children, marking a pivotal change for larger households.
Complete List of New Payment Rates
The new rates apply from the start of the new financial year. Below is the full breakdown of the increased Universal Credit amounts.
Standard Allowances
Single claimants under 25 will see their monthly payment rise from £316.98 to £338.58.
Single claimants aged 25 or over will receive an increase from £400.14 to £424.90.
For couples where both are under 25, the monthly allowance moves from £497.55 to £528.34.
Couples where one or both are 25 or over will get an uplift from £628.10 to £666.97.
Child and Disability Elements
Payments for children are also increasing. For a first child born before 6 April 2017, the amount rises from £339.00 to £351.88.
The rate for a first child born on or after 6 April 2017, or for any subsequent child, increases from £292.81 to £303.94.
The lower rate disabled child addition goes up from £158.76 to £164.79.
The higher rate disabled child addition increases from £495.87 to £514.71.
Work, Carer, and Housing Elements
The carer amount sees a rise from £201.68 to £209.34.
Significant increases are also applied to childcare cost support. The maximum for one child rises from £1,031.88 to £1,071.09 per month. For two or more children, the maximum climbs from £1,768.94 to £1,836.16.
Work allowances, which affect how much you can earn before your payment is reduced, are also going up. The higher work allowance (for those with children or limited capability for work and no housing support) increases from £684 to £710. The lower work allowance rises from £411 to £427.
The non-dependants' housing cost contribution will increase from £93.02 to £96.55.
Context and Long-Term Impact
The Labour Party government has highlighted the cumulative effect of such uprating decisions. While annual changes may seem modest, they compound over time, substantially altering the real-terms value of benefits. The government pointed to the historical divergence between the state pension and unemployment support as an example of how policy choices shape long-term financial security for recipients.
This announcement provides certainty for the millions of households who rely on Universal Credit. The combined effect of the standard allowance increases and the abolition of the two-child limit represents one of the most significant alterations to the welfare system in recent years, aiming to provide enhanced support against the backdrop of the prevailing economic climate.
