DWP change hands Universal Credit households £295 boost in 2026 | Personal Finance | Finance
Millions of UK households are in line for a £295 cash boost in 2026 as the Department for Work and Pensions (DWP) rolls out changes to Universal Credit. The DWP has set out a series of welfare reforms designed to “rebalance the benefits system” and help more people into work in new Universal Credit legislation. The reforms will come into effect from April and will see the standard rate of Universal Credit increased to give single claimants aged 25 or over around £295 extra per – or around £110 above inflation. Currently, the monthly standard allowance for single people in this age group is £400.14, but this rate will rise to £424.90 from April, giving claimants an extra £24.76 per month, or around £295 more annually.
The uplift is part of the government’s focus on tackling the cost of living and will see almost four million households on the standard rate of Universal Credit receive the first sustained above-inflation increase to the benefit.
The DWP said: “The boost is worth around £295 extra this year in cash terms for a single person aged 25 or over, rising to £760 by the end of the decade, and means those who are searching for and in work will have more money in their pocket as they look to get into and on at work.”
The rate for single claimants under 25 will also rise from April from £316.98 to £338.58, giving households an extra £21.60 per month, or around £259 more per year.
As for couples claiming Universal Credit, the joint rate for those under 25 will rise from £497.55 to 528.34 from April – an increase of £30.79 per month, or around £369 per year – and the joint rate for those aged 25 or over will rise from £628.10 to £666.97 – an increase of £38.87 per month, or around £466 annually.
As part of the welfare reforms coming into force in April, the DWP is also introducing a lower Universal Credit health element rate of £217.26 per month for new claimants.
Those with the most severe, lifelong conditions, those nearing end of life, and all existing Universal Credit health claimants will continue to receive the higher rate, no matter when they claim.
The higher rate is set to increase from £423.27 to £429.80 from April, giving claimants an extra £6.53 per month, or around £78 more annually.
The DWP said the change is to give people the support they need to progress and move into secure jobs, and to boost living standards.
Work and Pensions Secretary Pat McFadden said: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this.
“These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so.
“By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”
