At the same time, the government has announced plans to remove the two-child benefit cap, a move intended to expand financial support for larger families receiving Universal Credit. Supporters say the combined measures could help ease pressure on low-income households facing persistent cost-of-living challenges.
The changes will begin to take effect from the first full week of April, when updated payment rates are applied. For many claimants, the adjustment represents a modest but noticeable increase in monthly income, at a time when household budgets remain stretched. The Department for Work and Pensions (DWP) confirmed that the increase to the standard allowance will be set above the current rate of inflation. The government says the measure aims to provide additional support to some of the lowest-income families across the country.
Above-Inflation Increase Raises Standard Universal Credit Payments
The revised payment rates will affect millions of Universal Credit recipients across the UK. For couples aged 25 or over making a joint claim, the standard allowance will rise by nearly £40 per month, which amounts to roughly £468 over the course of a year.
Single claimants aged 25 and over will also see their payments increase, receiving about £25 more each month once the new rates are implemented. These changes will be reflected in payments issued from the first full week of April, when the revised allowance levels officially come into force.
Universal Credit provides a basic monthly payment known as the standard allowance, which can be supplemented by additional elements depending on personal circumstances. Claimants may receive extra support for housing costs, childcare expenses or disabilities, meaning the overall increase could vary between households.
The Department for Work and Pensions said the uplift would deliver a “cost-of-living boost” for people relying on the benefit. While the rise to the standard allowance is uniform, the total financial impact will depend on individual claims and any additional elements attached to them.
Government Moves to Remove the Two-Child Benefit Cap
Alongside the increase in payments, ministers have announced that the two-child benefit cap will be scrapped. Under the existing policy, families receiving Universal Credit or other related benefits can generally claim support only for their first two children.
The planned change will allow parents to receive additional payments for children beyond that limit. The government argues that removing the cap will help lift hundreds of thousands of children out of poverty by expanding eligibility for family support.
The two-child limit has been one of the most debated welfare policies introduced in recent years. Supporters of its removal say it places disproportionate pressure on larger families already facing financial hardship. Opponents, meanwhile, have criticised the policy shift, arguing that expanding eligibility will increase welfare spending. Some critics say the government risks committing significant resources to benefits during a period of tight public finances.
