Millions of Britons are set to receive a welcome boost to their incomes next spring, as the Department for Work and Pensions prepares to increase benefit payments in line with inflation.
Inflation Confirms Benefit Uprating
The key trigger for the increase was the release of September's inflation figure, which the Office for National Statistics confirmed as 3.8%. The DWP traditionally uses this September rate to determine the following April's benefit uprating.
While the final amounts will be officially confirmed by Chancellor Rachel Reeves in the Autumn Budget on November 26, the established process makes the April increase highly likely.
Universal Credit Receives Largest Boost
Claimants on Universal Credit are in line for the most substantial increase. Their payments are set to rise by September's inflation rate of 3.8%, plus an additional 2.3%.
This above-inflation increase is part of the Government's welfare reforms, which commit to raising Universal Credit by more than inflation every year until 2029.
This change translates to tangible weekly increases. For single claimants, payments will likely rise from £92 to £98 per week. For couples, the increase is projected to go from £145 to £154 weekly.
Financial and Demographic Implications
According to analysis by the Institute for Fiscal Studies, higher-than-expected inflation is projected to add approximately £500 million to the pensions bill and a further £1.3 billion to other benefits. The total cost of the uprating is expected to be nearer £18 billion.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, highlighted the long-term challenges, stating: "Recent data shows the number of people living until their nineties – and even longer – has soared and the government needs to consider how to balance the costs of state pension with the burgeoning pensioner population."
She added: "We won’t hear back from the review for some time, but we could see further increases to state pension age put on the table."
Full List of Benefits Set to Increase in April 2026
- Personal Independence Payment (PIP)
- Disability Living Allowance
- Attendance Allowance
- Incapacity Benefit
- Severe Disablement Allowance
- Industrial Injuries Benefit
- Carer's Allowance
- Additional State Pension
- Guardian's Allowance
- Universal Credit