One Universal Credit payment slashed in half from Monday | Personal Finance | Finance

One aspect of Universal Credit is being slashed for new claimants from next week. Limited Capability for Work and Work-Related Activity (LCWRA) provides additional monthly payments to people with health conditions or disabilities that limit the work they can do.

It is currently worth £423.27 a month and will rise to £429.80 from April 6, 2026, for existing claimants, but new claimants will be paid £217.26 from this date. It will be frozen at this level, 2029/30.

The exception will be those with a lifelong severe medical condition, for which you will need to inform the Department for Work and Pensions (DWP). The LCWRA element will be replaced with a new health element linked to Personal Independent Payment (PIP) by 2028/29.

The idea is that claimants will only need one PIP assessment, rather than two for PIP and Universal Credit. Universal Credit is claimed by more than eight million people in the UK.

Other changes coming next week include increasing the standard allowance, which is the basic amount you get in Universal Credit before any additional payments or deductions are made.

The Universal Credit standard allowance will rise by 6.2% – higher than the rate of inflation. For a single person aged 25 and over, the standard allowance will increase from £92 to £98 a week.

For couples, it will rise from £145 to £154 a week. The DWP estimates that by 2029, above-inflation increases will boost the average standard allowance by £775 in cash terms. You can see the new rates below.

Universal Credit has now replaced Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance and Housing Benefit.

There will be some cases where old benefits can continue, for example, you can continue to claim Housing Benefit if you are in supported or temporary accommodation.

Universal Credit standard monthly allowance