Seven DWP Benefits Frozen from April 2026: Full List Revealed
Millions of households across the United Kingdom are set to experience a welcome boost to their incomes starting in April 2026, following a parliamentary decision to increase inflation-linked benefits and tax credits by 3.8%. However, amidst this uplift, seven specific Department for Work and Pensions (DWP) benefits will not see any increase, remaining frozen at their current rates.
The House of Commons approved the measures on Tuesday, March 30, 2026, alongside a separate motion that confirmed a 4.8% rise in the state pension under the triple lock system. This broader increase reflects the inflation figure from September 2025 and will apply throughout the 2026/27 tax year, providing relief for many working-age benefit recipients.
Benefits Excluded from the April Increase
Universal Credit Health Element: For new claimants from April 2026, the UC health element will be reduced by up to 50%, equating to a loss of approximately £3,000 in annual support. Existing claimants will see their UC rates, along with equivalent payments in Employment and Support Allowance (ESA), frozen until 2030, resulting in an annual loss of around £500 for those affected.
Limited Capability for Work Element: The limited capability for work-related activity (LCWRA) element, often referred to as the 'health element', will be reduced to £217.26 per calendar month. Exceptions apply for pre-2026 claimants, those meeting severe conditions criteria, or individuals classified as terminally ill with a life expectancy of less than 12 months.
Local Housing Allowance (LHA): Rates for LHA remain frozen, despite calls from the Scottish Housing Secretary and Propertymark to unfreeze them. Current rates are failing to keep pace with rising rental costs, increasing homelessness risks and straining local authority budgets. Housing policy is devolved, but LHA rates are reserved to Westminster, highlighting ongoing challenges in welfare support alignment.
Over 80s Pension: While the category D state pension for individuals aged 80 or over will rise by 4.8% to £110.77 in April, the over-80s additional payment remains frozen at 25p. Those already receiving more than the base rate will not receive extra payments on top.
Benefit Cap: This limit on total benefit amounts for most people aged 16 or over who have not reached State Pension age remains unchanged. Exemptions exist for certain benefits or individuals over State Pension age. For Universal Credit claimants, the cap may not apply for up to nine months depending on earnings.
Capital Limits: The DWP maintains a savings limit of £16,000 for eligibility in benefits like Universal Credit, Income-based JSA, and Housing Benefit for those under State Pension age. Savings under £6,000 do not affect claims, but between £6,000 and £16,000, benefits are reduced, with every £250 over £6,000 counted as additional income.
£10 Christmas Bonus: The annual £10 Christmas bonus payment to state pensioners and certain benefit recipients will continue unchanged in December 2026. This payment has remained static since the early 1970s, with its value unchanged for over five decades.
Broader Context and Impacts
The decision to freeze these seven benefits comes as part of a broader economic strategy, with the 3.8% increase to other benefits aimed at mitigating inflation pressures. However, critics argue that the frozen benefits could exacerbate financial hardships for vulnerable groups, particularly in light of rising living costs.
As households prepare for the changes, it is crucial to understand which benefits are affected and plan accordingly. The DWP continues to oversee these adjustments, with further updates expected as the April 2026 implementation date approaches.
