In a major overhaul of the welfare system, the UK government has announced a full list of benefit changes scheduled for 2026. These reforms were confirmed by Rachel Reeves during the Autumn Statement and are set to affect millions of claimants across the country.
The changes include the scrapping of the controversial two-child limit in Universal Credit, increases in standard allowances, and a full phase-out of all legacy benefits. These developments mark a significant shift in the Department for Work and Pensions’ (DWP) approach to supporting low-income households, families, and pensioners.
Removal of Two-Child Limit and Universal Credit Adjustments
From April 2026, families claiming Universal Credit will no longer be restricted by the two-child limit, which previously prevented additional child element payments for third or subsequent children. According to Turn2us, this change means families with more than two children will now receive support for every child, marking a reversal of a policy that has faced ongoing criticism since its introduction.
Alongside this, standard allowances for Universal Credit claimants are set to increase across all categories. Single claimants under 25 will see their monthly support rise from £316.98 to £338.58, while those aged 25 and over will receive £424.90, up from £400.14. Joint claimants under 25 will see their allowance increased to £528.34, and those over 25 to £666.97.
However, not all changes are increases. New claimants of Universal Credit who are assessed as having Limited Capability for Work and Work-Related Activity (LCWRA) will see their weekly additional payment reduced from £94 to £50.
Childcare support under Universal Credit will also expand. The maximum amount claimable for childcare costs will rise by £736.06 for each additional child beyond the previous two-child limit. This aims to ease financial pressure on larger families balancing work and childcare.
Benefit Uprates and End of Legacy Payments
In terms of general uprating, most social security benefits across the UK will increase by 3.8% from April 2026. According to Turn2us, this includes both working-age and pensioner benefits. Meanwhile, the Basic and New State Pension will see a 4.8% rise, providing an income boost for millions of retirees.
One of the most significant structural changes will be the complete termination of all legacy benefits by 31 March 2026. No further payments under old systems such as Income Support, Housing Benefit (for those of working age), or Employment and Support Allowance (income-related) will be made after this date.
Beyond core benefits, the National Living Wage will increase by 4.1%, from £12.21 to £12.71 per hour. Younger workers will see sharper increases: for those aged 18 to 20, the National Minimum Wage will rise from £10.00 to £10.85, and for 16 to 17-year-olds and apprentices, from £7.55 to £8.00.
Further changes will occur later in the year. From October, applications for the Warm Home Discount Scheme will open across England, Scotland, and Wales. In November, eligible pensioners in the UK will begin receiving Winter Fuel Payments or the Pension Age Winter Heating Payment. Cold Weather and Winter Heating Payments will also be distributed to qualifying households in England, Wales, Northern Ireland, and Scotland.
As the government prepares to implement these wide-ranging reforms, both beneficiaries and support organisations will be watching closely to assess their impact over the coming year.
