Millions of households across the UK are expected to see their Universal Credit payments rise by 6.2% from April next year, in what has been described as a major rebalancing of the welfare system. The move, announced by Chancellor Rachel Reeves, represents a notable boost for claimants as the new rate surpasses current inflation levels.
This adjustment follows the government’s wider efforts to overhaul benefit entitlements and support struggling families. While the standard allowance sees an increase, cuts to health-related elements for new claimants are also being introduced. Together, these changes form a broader shift in the government’s approach to welfare provision.
Standard Allowance Increase to Offer Financial Relief
The confirmed 6.2% rise in Universal Credit payments will apply to the standard allowance component from April. According to Birmingham Live, single claimants aged over 25 will see an increase of nearly £25 per month. This is the first above-inflation increase of its kind in recent years, coming at a time when the inflation rate currently stands at 3.2%.
The uplift is expected to benefit millions of households and marks a tangible step in addressing the cost-of-living pressures many claimants are facing. As outlined by Citizens Advice, “The amount of Universal Credit you get will change. This is because the Universal Credit ‘standard allowance’ is increasing.”
The measure is also being framed as part of a broader strategy to provide additional help to families. One significant part of this reform is the removal of the two-child cap on benefit claims. According to the same source, scrapping the cap will allow parents with more than two children to receive extra financial support, potentially amounting to hundreds of pounds more annually.
Cuts to Disability-Related Support Raise Concerns
While the increase in standard payments has been broadly welcomed, the policy also introduces substantial cuts to the health-related element of Universal Credit for new applicants. This component, officially known as the “limited capability for work-related activity” (LCWRA) element, will be reduced by nearly 50% for those not currently receiving it.
Citizens Advice highlighted the issue in its guidance, explaining that although the standard allowance is increasing, “You might also be affected by the April 2026 changes if you get the additional amount because you have a long-term health condition or a disability. This payment is referred to as the ‘limited capability for work-related activity’ (LCWRA) element. The amount is decreasing for most people who aren’t already receiving it.”
This revision to the LCWRA payment has raised concerns among welfare groups and disability advocates, particularly as it affects new claimants from 2026 onward. While existing recipients will not see immediate changes, the reduction signals a shift in how disability support is structured within the Universal Credit framework.
As the new rates come into effect next April, the coming months will likely see renewed scrutiny on how these adjustments play out across different claimant groups. With some households gaining and others facing reductions, the government’s broader welfare strategy remains under close observation.
