MILLIONS of households on Universal Claimants will see their benefits rise by more than inflation over the coming years.
It comes despite the Department for Work and Pensions (DWP) unveiling a comprehensive package of benefit cuts today, aimed at addressing the escalating costs of the nation’s welfare system.
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The Government has announced that the standard allowance for Universal Credit will receive a permanent increase exceeding the rate of inflation, starting next year.
For a single person aged 25 and over, this will result in a £7 weekly rise from April 2026 – an increase from the current £91 per week to £98 per week.
By 2029, the DWP estimates that above-inflation increases will boost the average claimant’s standard allowance by £775 in cash terms compared to inflation-only rises.
Similar percentage increases will be applied to the standard allowance for those under 25 and couples.
Benefit payments typically increase each Spring to keep pace with the rising costs of essentials such as food, fuel, and household bills.
The Government said that the four-year benefit freeze from 2015 to 2019, which affected the standard allowance but not incapacity benefits, has left millions of payments trailing behind inflation.
Despite this, payments are still set to rise in line with inflation this year, ahead of the above-inflation increases to the standard allowance from April 2026.
All Universal Credit elements, including the standard allowance, will increase by 1.7% from next April 2025.
For a single person aged 25 and over, the standard allowance will rise from £393.45 to £400.14.
Meanwhile, for joint claimants where one or both are 25 or over, the standard allowance will rise from £617.60 to £628.09.
What is the Universal Credit standard allowance?
UNIVERSAL Credit is a welfare scheme which was designed to combine several of the old “legacy benefits
The standard allowance is the basic monthly payment provided to individuals or families who qualify.
The amount you receive depends on your age and whether you’re single or in a couple:
- Single, under 25: £311.68 (£316.98 from next month)
- Single, 25 or over: £393.45 (£400.14 from next month)
- Couple, both under 25: £489.23 (£497.55 from next month)
- Couple, one or both 25 or over: £617.60 (£628.09 from next month)
You may also be eligible for additional amounts if you have children, have a disability or health condition, or need help with housing costs.
What other Universal Credit changes were announced?
The Work Capability Assessment (WCA), which determines whether someone is deemed fit for work or has limited capability for work (LCW) or limited capability for work-related activity (LCWRA), will be scrapped by 2028.
In its place, eligibility for additional financial support related to health will be determined solely through the personal independence payment (PIP) assessment.
While current LCWRA claimants will retain their current health element (£416.19 per month) and benefit from the standard allowance rise, new claimants will receive a lower health element, offset by the higher standard allowance.
A new premium is proposed for those with the most severe, lifelong conditions who cannot work.
Claimants under the age of 22 will no longer be eligible for the health element of Universal Credit.
Instead, funding will be redirected to the Youth Guarantee scheme, aimed at supporting young people into work or training opportunities.
The Government is introducing legislation to remove barriers to employment for benefit claimants by ensuring that attempting work will no longer automatically trigger a reassessment or review of their award.
The intention is to give people the confidence to try work without fear of immediately losing their benefits if it doesn’t work out.
What are Work Capability Assessments?
The DWP uses the Work Capability Assessment (WCA) to evaluate a claimant’s ability to work when applying for Universal Credit due to a health condition or disability.
The WCA focuses on assessing functional limitations rather than specific medical diagnoses.
It considers both physical and mental health, awarding points based on how an individual’s condition impacts their ability to carry out daily activities.
After the assessment, claimants may be placed into one of two groups – Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LCWRA).
Claimants assigned to the LCW group are recognised as currently unfit for work but may be capable of returning to employment in the future with the right support and assistance.
Those in this group are required to engage in work-related activities, such as attending Jobcentre appointments or training courses.
Failure to comply with these requirements may result in sanctions, including a reduction or suspension of benefits.
Claimants are placed in the LCWRA group if their health condition or disability is considered so severe that they are not expected to be able to work or participate in any work-related activities in the foreseeable future.
Those in the LCWRA group receive an additional amount on top of their standard Universal Credit allowance currently worth £416.19 a month.