Universal Credit to Rise £312 in 2026

Universal Credit claimants are set to receive an inflation-busting £312 annual increase in 2026, following the introduction of the Universal Credit Act 2025.

The legislation mandates that Universal Credit payments rise above inflation each year until 2030, providing an additional 2.3% uplift on top of inflation. With the September inflation rate recorded at 3.8%, the total increase for April 2026 will reach 6.2% — giving single claimants an extra £6 per week.

The Department for Work and Pensions (DWP) confirmed that the final figures will be announced in the Autumn Budget on November 26. The increase will benefit around 7.5 million people across the UK, including those who use Universal Credit as an income supplement.

However, the reforms will also see a reduction in the Limited Capability for Work-Related Activity (LCWRA) payments, which will be halved from £432 to £217 per month and then frozen. At the same time, the standard Universal Credit rate will increase faster than inflation to balance the overall structure.

According to estimates, the standard allowance will rise from £92 to £98 per week for single claimants, and from £145 to £154 per week for couples. Parliament has stated that these changes aim to “rebalance” Universal Credit by boosting core support while limiting additional disability-related payments, except for those with severe or terminal conditions.

By 2029–30, the Universal Credit standard allowance is expected to be 4.8% higher than it would have been under the standard inflation-linked increases.