Millions of Britons receiving Department for Work and Pensions (DWP) benefits are set for a significant financial boost next year, with payments for Universal Credit, Personal Independence Payment (PIP) and Carer's Allowance scheduled to rise by an inflation-busting amount.
Substantial Increase Confirmed
From April 2026, benefit claimants will see their payments increase by approximately 6.2% - substantially higher than the current inflation rate of 3.8%. This significant uplift comes as part of the new Universal Credit Act introduced to Parliament this year.
The increase comprises two components: the standard 3.8% rise reflecting inflation, plus an additional 2.3% boost specifically for the Universal Credit standard allowance. This marks the first time the main rate of Universal Credit will be sustained above inflation.
What This Means for Claimants
According to analysis by the Joseph Rowntree Foundation (JRF), the changes mean the Universal Credit standard allowance will increase from £92 to £98 per week for single claimants.
Chris Belfield, chief economist at JRF, commented: "The majority of people on Universal Credit cannot afford essentials like food, heating and basic toiletries. That will remain the case despite an increase of around 6.2% to the standard allowance, which still leaves a single adult with only £98 per week."
He emphasised that "the standard allowance should enable people to afford life's essentials, but it has never reflected what those essentials actually cost."
Mixed Reactions from Experts
While welcoming the above-inflation increase, benefits experts have cautioned that it follows decades of erosion in support levels.
Anna Stevenson, a benefits expert at Turn2Us, described the move as "a step in the right direction" but noted that support "remains at one of its lowest ever levels in real terms and as a proportion of average earnings."
She highlighted ongoing concerns that "many households will still struggle to meet basic costs because rents, childcare and energy have risen far faster" than benefit rates.
A Department for Work and Pensions spokesperson stated: "We're shifting our focus from welfare to work, skills, and opportunities, so more people can move out of poverty and into good, secure jobs as part of our Plan for Change. We're also sustaining the main rate of Universal Credit above inflation for the first time and rebalancing the benefit's rates to reduce the perverse incentives that encourage ill health."
