New Universal Credit claimants could miss out from April | Personal Finance | Finance
Those applying for Universal Credit in the coming months could face a significant reduction compared to if they applied now, as the government has confirmed several changes to Universal Credit from April 2026. These changes include a 2.3% increase to the Standard Allowance and the removal of the two-child limit, which will benefit some parents.
However, other allowances may be negatively affected by these changes. Currently, applicants can receive up to £628.10 from the Standard Allowance when applying for Universal Credit.
Depending on individual circumstances and reasons for applying, additional amounts could be received. For instance, those living with a disability or health conditions might qualify for the limited capacity for work and work-related activity (LCWRA).
Changes to LCWRA that will affect new claimants
At present, if you are eligible for LCWRA, you could receive as much as £423.27 on top of your standard Universal Credit payments each month. However, if you have limited capability for work and started your health-related Universal Credit or Employment and Support Allowance claim before April 3, 2017, then you will instead receive £158.76.
From April 6, 2026, the government plans to significantly reduce the LCWRA monthly rate for new claimants to £217.26 per month. It is important to note that this change will only affect new claimants on or after April 6, 2026.
How to secure the current rate
When applying for Universal Credit, you can declare that you have a health condition or disability that impacts your ability to work. This could encompass needing assistance in your job, support in finding employment, or being unable to work either temporarily or long-term.
It is crucial when declaring this condition to provide detailed information to substantiate your claim, such as any ongoing medical treatment or upcoming hospital stays.
If you are already receiving Universal Credit, you must report this as a change on your Universal Credit account.
Full details of Universal Credit and your health condition or disability can be found on GOV.UK here.
