The Department for Work and Pensions (DWP) has announced the new 2026/27 payment rates for those receiving the State Pension or benefits. This includes the updated payment figures for 8.3 million people claiming Universal Credit.
In addition to the annual uprating from April 6, the DWP anticipates nearly four million households will experience an annual income increase of approximately £725 under the new Universal Credit Act.
Changes outlined in the Universal Credit Act aim to rebalance the core payment and health top-up in Universal Credit.
The Act will ensure the Universal Credit standard allowance permanently increases above inflation, totalling £725 by 2029/30 in cash terms for a single person aged 25 or over.
Fill information on all the new payment rates for benefits administered by the DWP can be found on GOV.UK.
It’s important to note most benefits, including Universal Credit, are paid in arrears which means most claimants will not receive the complete new amount until after the first payment cycle following April 6 has concluded, reports the Daily Record.
This means most Universal Credit claimants will not see the new payment rates arriving in their bank accounts until May, at the earliest.
Universal Credit payment rates 2026/27
Rates shown are monthly unless stated otherwise
- First child (born prior to 6 April 2017): £351/88 (from £339)
- First child (born on or after 6 April 2017 / second child and subsequent child (where an exception or transitional provision applies)): £303.94 (from £292.81)
Limited Capability for Work
- Limited Capability for Work amount: £158.76 (no change)
- Limited Capability for Work and Work-Related Activity amount: £217.26 (from £423.27)
- Limited Capability for Work and Work-Related Activity amount (Pre-2026 claimant, severe conditions criteria claimant or claimant who is terminally ill): £429.80
Carer amount: £209.34 (from £201.68)
A full list of additional elements and reductions or deductions for Universal Credit payments can be accessed on GOV.UK.
The Universal Credit Act
The DWP said that rebalancing of Universal Credit health and standard elements to tackle the fundamental imbalance in the system which generates perverse incentives that push people into dependency through:
- Increasing the Universal Credit standard allowance above inflation for the next four years – worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
- Reducing the health top-up for new claims to £50 per week from April 2026.
- Ensuring all existing recipients of the Universal Credit health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher Universal Credit health payment after April 2026.
- Exemptions from reassessment for those with the most severe, lifelong conditions.
The DWP stated the changes will tackle the ‘fundamental imbalance in the system which generates perverse incentives that push people into dependency’.