Universal Credit claimants to receive £295 boost from April 2026
Millions of households across the United Kingdom are set to receive a significant financial uplift, with Universal Credit claimants scheduled to gain an extra £295 this year. The Department for Work and Pensions has confirmed that new welfare reforms will take effect from April 2026, designed to rebalance the benefits system and support more individuals into employment.
Detailed payment increases for claimants
The reforms will see the standard rate of Universal Credit increased, providing single claimants aged twenty-five or over with approximately £295 extra per year. This represents around £110 above the current inflation rate. Specifically, the monthly standard allowance for single people in this age category will rise from £400.14 to £424.90, resulting in an additional £24.76 per month.
This uplift marks the first sustained above-inflation increase to the benefit, impacting nearly four million households on the standard rate. The government emphasizes that this move is part of a broader focus on tackling the ongoing cost of living crisis, ensuring that those searching for work or currently employed have more disposable income.
Additional increases for other claimant groups
The payment boosts extend beyond single claimants aged twenty-five or over. For single claimants under twenty-five, the rate will increase from £316.98 to £338.58 monthly, providing an extra £21.60 per month or around £259 annually. Couples claiming Universal Credit will also benefit significantly.
- For couples under twenty-five, the joint rate rises from £497.55 to £528.34 monthly, an increase of £30.79 per month or approximately £369 per year.
- For couples aged twenty-five or over, the joint rate increases from £628.10 to £666.97 monthly, adding £38.87 per month or about £466 annually.
Changes to the Universal Credit health element
As part of the comprehensive welfare reforms, the DWP is introducing a lower Universal Credit health element rate of £217.26 per month for new claimants. However, this change will not affect everyone.
Individuals with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate, regardless of when they claim. The higher rate itself is set to increase from £423.27 to £429.80 from April, offering claimants an extra £6.53 per month or around £78 more each year.
Government statements on the reforms
The DWP has stated that these adjustments aim to provide people with the necessary support to progress into secure employment and enhance living standards. Work and Pensions Secretary Pat McFadden commented on the initiative, highlighting a shift in the benefits system.
"The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this," McFadden said. "These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so. By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future."
The DWP further elaborated that the boost is worth around £295 extra this year in cash terms for a single person aged twenty-five or over, with projections indicating it could rise to £760 by the end of the decade. This initiative underscores the government's commitment to fostering a welfare system that actively encourages and facilitates employment, providing tangible financial relief to millions during challenging economic times.
