Big changes are on the horizon for Universal Credit next year, potentially impacting millions of claimants. This benefit, utilized by over eight million individuals in the UK, is administered by the Department for Work and Pensions (DWP).
The upcoming modifications involve an increase in the standard allowance, which serves as the base payment in Universal Credit before any adjustments are made. However, there are cuts expected in the health-related element for new claimants.
Universal Credit is gradually replacing various older benefits such as Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit. Individuals transitioning to Universal Credit will receive a “migration notice” by mail, providing a three-month timeframe to begin their claim.
Starting April of the following year, the standard allowance for Universal Credit will see a 6.2% rise, exceeding the inflation rate. For example, the standard allowance for a single person aged 25 and above will increase from £92 to £98 per week, while for couples, it will go up from £145 to £154 weekly.
Another crucial aspect, the Limited Capability for Work and Work-Related Activity (LCWRA) component of Universal Credit, which offers additional payments to those with health issues or disabilities limiting their work capacity, is also undergoing changes. New claimants awarded LCWRA will receive £50 per week from April 2026, with no increases until 2030. Existing claimants, on the other hand, will continue to receive £97 per week until 2030, after which the element will be replaced with a new health element linked to PIP.
A new subgroup within the LCWRA, the Severe Conditions Category (SCC), will be introduced in 2026 for individuals with severe, lifelong disabilities and illnesses. They will receive the current higher rate of the LCWRA element and will be exempt from routine reassessments. The assessment for this subgroup will focus on how the condition impacts the individual rather than the condition itself.