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Home » Universal Credit payments to change from April 2026
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Universal Credit payments to change from April 2026

By britishbulletin.com13 January 20264 Mins Read
Universal Credit payments to change from April 2026
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Universal Credit payments will change from April 6, 2026 under measures in the Universal Credit Act 2025 confirmed in the Budget.

These include an increase to the standard allowance, which forms the core of every Universal Credit payment, and is paid to all claimants regardless of their circumstances.


Single claimants aged under 25 will see their monthly standard allowance rise from £316.98 to £338.58.

Those aged 25 and over will receive £424.90 a month, up from the current rate of £400.14.

Couples where both partners are aged under 25 will have their joint monthly allowance increased from £497.55 to £528.34.

For couples where one or both partners are aged 25 or over, the standard allowance will rise from £628.10 to £666.97 a month.

The Government has said the increases are intended to provide additional support as households continue to face pressure from the cost of living.

Ministers have also confirmed plans to scrap the two-child limit for Universal Credit from April 2026.

This policy change will allow families to receive child-related elements for all eligible children, rather than being limited to the first two.

Alongside these increases, however, the reforms include a significant reduction for one group of claimants.

The Limited Capability for Work-Related Activity element, known as LCWRA, will be cut for new recipients from April 6, 2026.

It’s an additional payment awarded to claimants with long-term health conditions or disabilities who are assessed as being unable to work or prepare for work.

Changes to the standard allowance will be a significant shift for claimants

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It is currently worth £423.27 per month on top of the standard allowance.

Under the new rules, anyone who becomes entitled to the LCWRA element on or after April 6, 2026, will receive £217.26 a month.

This represents a reduction of just over £200 compared with the current rate.

The Department for Work and Pensions (DWP) said the change is intended to address concerns raised in an official Impact Assessment.

A DWP spokesperson said: “These reforms remove the incentive for people to declare themselves unable to work in order to improve their incomes.”

An Impact Assessment completed in July 2025 found that some claimants were struggling with living costs because the standard allowance was lower than the LCWRA element.

The assessment suggested this imbalance may have encouraged some people to pursue the health-related payment because it exceeded the basic Universal Credit award.

For claimants hoping to secure the higher LCWRA rate before the April changes, the deadline has already passed.

The DWP said the change is intended to address concerns raised in an official Impact Assessment

| GETTY

The final window to report a relevant health condition ran between December 6, 2025, and January 5, 2026, depending on individual circumstances.

Because there is usually a three-month waiting period before the LCWRA element is paid, anyone who reported their condition after this window will fall under the new lower rate.

This means new Universal Credit claimants with disabilities or long-term health conditions who apply now will receive around half the LCWRA amount paid to existing recipients.

The DWP has confirmed that people already receiving the LCWRA element will not be affected by the reduction.

Their payments will continue at the current rate of £423.27 a month.

According to a House of Commons Library briefing, these claimants will be classed as a protected group under the new legislation.

This group will also benefit from the increase to the standard allowance from April 2026, alongside the preserved LCWRA payment.

Anyone assessed as eligible for LCWRA well before the April deadline will similarly retain the higher rate.

Other benefits are not affected by the Universal Credit reforms

| GETTY

Personal Independence Payment (PIP) will remain unchanged and is not linked to the LCWRA element.

The changes form part of a wider programme of welfare reform introduced through the Universal Credit Act 2025.

The legislation followed government intervention after the Impact Assessment concluded that changes to Universal Credit were required.

Legacy benefits, including Income Support, are also being phased out during 2026.

As part of this process, some households will be required to move from legacy benefits onto Universal Credit under managed migration rules.

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