DWP benefit changes 2026 – full list of all confirmed by Rachel Reeves | Personal Finance | Finance

Millions of people depend on benefits such as the State Pension, Universal Credit, Attendance Allowance or PIP. According to data from last year, approximately 24 million people receive some form of benefit from the Department of Work and Pensions (DWP), including around 13 million of State Pension age, 10 million of working age, and some disabled children who qualify for assistance.

In Rachel Reeves‘ autumn budget, numerous changes were announced to various benefits, including the abolition of the two-child limit, resulting in increased payments for families with more than two children. Charity Turn2us, which assists people in accessing their entitled benefits, has compiled a list of all the planned changes for 2026.

The charity updated its guide last week, advising, however, that future changes may be made, reports The Mirror. It added: “Although some will happen quickly, others may be introduced gradually.”

March 2026

All legacy benefits will end on 31 March 2026. This means no more payments will be made after that date.

April 2026

Universal Credit

Introduction of changes to Universal Credit, from April 2026:

• The two-child limit will be removed. This means families with three or more children will receive an extra child element payment for each additional child
• New claimants of Universal Credit who get LCWRA will not get the full £94 per week and instead get £50
• The maximum amount available for Universal Credit Childcare Costs will increase by £736.06 for each additional child above the two-child cap

The Universal Credit standard allowance will increase from:

• £316.98 to £338.58 per month for single people aged under 25
• £400.14 to £424.90 per month for single people aged 25 and over
• £497.55 to £528.34 per month for joint claimants both aged under 25
• £628.10 to £666.97 per month for joint claimants both aged 25 and over

Benefit increases

• Social security benefits across the UK will increase by 3.8%
• The New and Basic State Pension will increase by 4.8%
• The National Living Wage will rise by 4.1%, from £12.21 to 12.71 per hour
• The National Minimum Wage for 18 to 20-year-olds will increase by 8.5%, from £10.00 to £10.85 per hour. For 16 to 17-year-olds and apprentices it will increase by 6% from £7.55 to £8.00 per hour
• Extra taxes will be added to cars leased through the Motability Scheme, along with restrictions on certain car brands.

October 2026

The Warm Home Discount Scheme opens for applications in England, Scotland and Wales.

November 2026

• Across the UK, eligible pensioners will begin to receive their Winter Fuel Payment or Pension Age Winter Heating Payment
• In England, Wales and Northern Ireland, the Cold Weather Payment 2026 scheme opens
• In Scotland, the Winter Heating Payment and Child Winter Heating Payment will be paid to eligible households.

For the latest money saving tips, shopping and consumer news, go to the new Everything Money website