Millions of UK households are set to experience an increase in their Universal Credit payments in just a few months. Current government statistics reveal that 7.5 million people are presently receiving benefits, with an average of around 47,000 claims being made each week.
Starting from April this year, numerous benefits and payments from the Department for Work and Pensions (DWP) will see substantial increases in their payment rates. Additional changes are also scheduled for April as part of the Universal Credit Act 2025.
For instance, the standard allowance for Universal Credit will rise across the board, and many parents could also benefit from a significant alteration to the child limit in Universal Credit. At present, a two-child limit is enforced for the benefit, meaning the DWP does not provide any extra benefits for parents with more than two children.
However, the government has confirmed that this two-child limit will be abolished from April this year, permitting additional payments for third and subsequent children. It’s important to note, though, that despite this major change, the overall benefit cap for Universal Credit will continue to apply.
Universal Credit rates for 2026/27
The government has confirmed that the Standard allowance for Universal Credit will increase by 2.3%. Furthermore, the following payments have been proposed by the government to increase from April 2026:
Single people
- Under 25: From £316.98 to £338.58
- 25 or over: From £400.14 to £424.90
Couples
- Joint claimants that are both under 25: From £497.55 to £528.34
- Joint claimants where one or both are 25 or over: From £628.10 to £666.97
Child Amounts
- First child (born prior to 6 April 2017): From £339.00 to £351.88
- First child (born on or after 6 April 2017) / subsequent children: From £292.81 to £303.94
Disabled Child Additions
- Lower rate addition: From £158.76 to £164.79
- Higher rate addition: From £495.87 to £514.71
Limited Capability for Work (LCW) / Work-Related Activity (LCWRA)
- Limited Capability for Work amount: Remaining at £158.76
- Limited Capability for Work and Work-Related Activity amount (On, or after, April 6, 2026): From £423.27 to £217.26
- Limited Capability for Work and Work-Related Activity amount (Pre-2026 claimant, severe conditions criteria, or terminally ill): From £423.27 to £429.80
Carer Amount
- Carer amount: From £201.68 to £209.34
Childcare Costs Amount
- Maximum for one child: From £1,031.88 to £1,071.09
- Maximum for two or more children: From £1,768.94 to £1,836.16
Housing & Work Allowances
- Non-dependants’ housing cost contributions: From £93.02 to £96.55
- Higher work allowance (no housing amount): One or more dependent children or limited capability for work: From £684.00 to £710.00
- Lower work allowance: One or more dependent children or limited capability for work: From £411.00 to £427.00