The UK Government has confirmed how much DWP benefits, including Universal Credit, will rise from April next year. These adjustments, announced during the recent Autumn Budget, follow the long-standing rule that benefit levels increase each April based on the inflation rate recorded in the previous September.
Why Benefits Are Increasing in April 2026
Each year, the Government reviews benefit payments to ensure they reflect changes in the cost of living. The latest inflation data released by the Office for National Statistics (ONS) confirmed that inflation held steady at 3.8% in September, slightly below the 4% increase expected by the Bank of England and several economic analysts.
This inflation rate now forms the basis for the benefits uplift scheduled for April 2026.
Budget Decisions and Economic Pressures
Chancellor Rachel Reeves faced the difficult task of balancing a £50 billion deficit in the nation’s finances. Ahead of the Budget, she highlighted three urgent priorities:
- Lowering everyday living costs
- Reducing long NHS waiting lists
- Cutting unnecessary public spending
Despite these goals, Ms Reeves received criticism for decisions such as tax increases and tightening ISA limits. For weeks, there was widespread speculation about whether income tax rates would rise. However, she ultimately dropped the proposal, which would have breached Labour’s manifesto pledge, after updated economic forecasts were more positive than anticipated.
How Inflation Impacts Benefit Increases
The Government traditionally uses September’s annual inflation figure to calculate the April benefit rise. This method disadvantaged claimants this year when major benefits—such as Universal Credit, PIP, Housing Benefit, Jobseeker’s Allowance, Income Support, and Carer’s Allowance—rose by only 1.7%, reflecting September 2024’s inflation rate.
However, by April, the real cost of living had increased significantly, hitting 3.8%. Current projections suggest this figure may ease by next April, but it remains the official benchmark for the upcoming rise.
Background: Universal Credit and Its Purpose
Universal Credit, launched in 2013, was designed to simplify the welfare system by replacing several older benefits. By 2018, all new applicants were required to claim UC, while those on legacy benefits continued receiving their original awards unless they transitioned.
New Universal Credit Rates Effective April 2026
Below are the confirmed monthly payment increases for Universal Credit beginning April 2026.
Universal Credit Payment Increases (April 2026)
Standard Allowance
Single Claimants
- Under 25: £316.98 → £338.58
- 25 or over: £400.14 → £424.90
Couples
- Both under 25: £497.55 → £528.34
- One or both 25 or over: £628.10 → £666.97
Child Amounts
- First child (born before 6 April 2017): £339.00 → £351.88
- First/subsequent child (born on or after 6 April 2017): £292.81 → £303.94
Disabled Child Additions
- Lower rate: £158.76 → £164.79
- Higher rate: £495.87 → £514.71
Limited Capability for Work (LCW)
- LCW amount: £158.76 → £158.76 (no change)
- LCWRA amount: £423.27 → £217.26
- LCWRA (pre-2026, severe conditions, or terminally ill): £423.27 → £429.80
Carer Amount
- £201.68 → £209.34
Childcare Costs
- One child maximum: £1031.88 → £1071.09
- Two or more children maximum: £1768.94 → £1836.16
Housing Cost Contributions
- Non-dependant deduction: £93.02 → £96.55
Work Allowances
- Higher allowance (no housing costs): £684.00 → £710.00
- Lower allowance: £411.00 → £427.00
The April 2026 Universal Credit increase aims to help households manage everyday expenses during a period of steady inflation. Although the rise reflects a higher benchmark than in previous years, many families will still feel financial pressure.
Nonetheless, these adjustments are essential to ensuring benefits stay aligned with the UK’s evolving cost-of-living landscape. The newly confirmed rates provide clearer financial expectations for millions of claimants in the coming year.
FAQs
Why are Universal Credit payments increasing in April 2026?
Benefits rise each April based on the previous September’s inflation rate. For 2026, the uplift is tied to the 3.8% inflation recorded in September.
Are all Universal Credit elements increasing?
Most elements are rising, including standard allowances, child amounts, and childcare support. Some LCWRA components remain unchanged or are adjusted differently based on claimant type.
When will the new rates officially apply?
The updated Universal Credit amounts will take effect from April 2026, following confirmation in the Autumn Budget.