Significant reforms to the Department for Work and Pensions' (DWP) flagship welfare payment are set to take effect in 2026, impacting millions of claimants across the United Kingdom. Seven key changes to Universal Credit (UC) will alter payment rates, eligibility criteria, and the structure of additional elements, marking a substantial shift in the benefits landscape.
Core Payment Increases and a Major Uplift
The most immediate change for all recipients will be an increase in the Universal Credit standard allowance by 6.2% from April 2026. This rise is set above the current rate of inflation. For a single claimant aged 25 or over, the weekly allowance will climb from £92 to £98. Couples will see their rate increase from £145 to £154 per week.
This forms part of a broader, legislated £725 uplift over the coming years. The Universal Credit Act 2025 mandates a 'rebalancing' of the system, increasing the basic allowance for all while reducing some specific additional payments. The DWP estimates that by the 2029/30 financial year, the standard allowance will be 4.8% higher than if it had only risen with Consumer Prices Index (CPI) inflation.
Health-Related Elements: A Two-Tier System Emerges
A major and controversial change concerns the Limited Capability for Work and Related Activity (LCWRA) element, which supports those with severe health conditions. For most new claimants entitled to this element from April 2026, the payment will be approximately halved, from £432.27 to £217.26 per month. This reduced amount will then be frozen until at least 2029/30.
However, a new 'protected' cohort will be established. This group includes existing LCWRA recipients and new claimants who are terminally ill or have severe, lifelong conditions with no expectation of work. Their combined UC standard allowance and health element will continue to rise at least in line with inflation annually from 2026/27.
Citizens Advice has issued a crucial warning: anyone with a severe condition currently receiving the higher health element must report their condition to the DWP by January 5, 2026. Failure to do so risks being moved to the new, lower rate from April.
Scrapping the Two-Child Limit and Ongoing Migration
In a move hailed as a key measure to tackle child poverty, the government will remove the two-child limit on Universal Credit from April 2026. This means families will receive the child element for all children, regardless of family size. The government estimates this change will result in 450,000 fewer children living in relative low income after housing costs by 2030.
Separately, the ongoing migration of legacy benefits to Universal Credit continues. Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit are all being replaced. Affected individuals will receive a 'migration notice' by post instructing them on the required steps.
The 2026 changes represent the most significant overhaul of Universal Credit in recent years. While the increased standard allowance and end of the two-child limit offer welcome support to many families, the reduction in the health element for new claimants has drawn criticism from charities. They argue it risks increasing hardship among disabled people, who often face higher living costs. All claimants are urged to stay informed about how these reforms will directly affect their monthly payments.
