The average Universal Credit payment now stands at £1,030 per household, with families receiving up to £1,330, according to the latest Department for Work and Pensions (DWP) figures for February 2026. This comes as Andy Burnham, the Labour Prime Minister, faces mounting pressure to reduce the welfare bill, with a staggering eight million claimants currently in receipt of the benefit.
Payment breakdown by family type
The DWP data reveals significant variation in average payments depending on household composition. Single claimants without children receive the lowest average payment at £800, while couples with children receive the highest at £1,330. The overall mean payment across all eight million households is £1,030.
Universal Credit entitlement is calculated based on a standard allowance plus additional elements such as housing costs, childcare, and other premiums. Some households may also receive advances or mortgage interest payments, which can further affect the total amount paid out.
Burnham's stance on welfare cuts
Mr Burnham has explicitly ruled out pursuing broad benefit cuts, stating he would not adopt "a kind of crude approach, crude cuts to benefits to get the welfare bill down." He argued that such measures would "push people into even more crisis and then even more public spending in another part of the system," emphasising the need for "a system that sets people up for success rather than pays for failure."
His comments come against a backdrop of intense political debate over welfare spending, with the Prime Minister facing pressure from within his own party and from opposition parties to tackle the growing bill. The challenge is compounded by the need to increase defence spending, as highlighted by Chancellor John Healey's ambitions.
Reform party predictions and political pressures
Reform insiders have expressed confidence that welfare will once again become a major political vulnerability for Labour. A senior Reform source told the i paper this weekend: "There will be problems in the run-up to the next Budget. Quite clearly [Chancellor] John Healey wants to spend more money on defence. The only realistic way that you can tackle that is by reducing the benefits bill, and I don’t think [Burnham] will get the backing from the Parliamentary Labour Party (PLP) for that."
However, Labour backbenchers are increasingly optimistic that the PLP is now prepared to support reform. One MP who had previously signed a "reasoned amendment" that helped sink earlier cuts said: "We’re in a different time. The need to increase defence spending is obvious to everybody."
Shifting mood among Labour MPs
The MP, who spoke on condition of anonymity, added: "There’s a stronger sense now amongst the PLP that we know that it’s electorally popular for us to grasp this issue, and we probably won’t win an election if we don’t. I imagine for all of those reasons, he will get stuff through."
This shift in mood suggests that Mr Burnham may find it easier to pass welfare reforms than previously anticipated, despite the resistance from some quarters. The coming months will be critical as the government navigates the delicate balance between fiscal responsibility and social support.
