Universal Credit is claimed by more than eight million people in the UK and it is paid by the Department for Work and Pensions (DWP)
There are big changes to Universal Credit coming next year that could impact millions of claimants.
Universal Credit is claimed by more than eight million people in the UK and it is paid by the Department for Work and Pensions (DWP).
The changes include increasing the standard allowance, which is the basic amount you get in Universal Credit before any additional payments or deductions are made.
But there are also significant cuts coming to the health-related element for new Universal Credit claimants.
More people being moved to Universal Credit
The majority of older legacy benefits are being replaced by Universal Credit and the final people will be moved across by the end of March 2026.
Universal Credit is replacing Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance and Housing Benefit.
If you need to move to Universal Credit, you will receive a “migration notice” in the post. This will give you a three-month deadline to start claiming Universal Credit.
There will be some cases where old benefits can continue, for example, you can continue to claim Housing Benefit if you are in supported or temporary accommodation.
Universal Credit standard allowance to rise
The Universal Credit standard allowance will rise by 6.2% – higher than the rate of inflation – from next April. For a single person aged 25 and over, the standard allowance will increase from £92 to £98 a week.
For couples, it will rise from £145 to £154 a week. The DWP estimates that by 2029, above-inflation increases will boost the average standard allowance by £775 in cash terms.
Universal Credit sickness payment halved and frozen for new claimants
The Limited Capability for Work and Work-Related Activity (LCWRA) is the health element of Universal Credit. It provides extra monthly payments for those who have health issues or disabilities that limit the work they can do.
The amount is currently set at £97 a week – but from April 2026, new claimants awarded LCWRA will only receive £50 a week. It will then be frozen at this level 2029/30.
Existing claimants will see the top up frozen at £97 a week until 2030, with no annual increases. By 2030, the LCWRA element will be scrapped entirely and replaced with a new health element linked to PIP.
New Severe Conditions Category introduced
A new subgroup within the LCWRA will be introduced in April 2026 for people with the most serious, lifetime disabilities and illnesses. The new Severe Conditions Category (SCC) will receive the higher, current rate of the LCWRA element.
They will also be exempt from routine reassessments for this element. It is understood claimants will not be assessed on what their condition is, but on how it impacts them.
