Big changes are on the horizon for Universal Credit next year, impacting millions of claimants. More than eight million people in the UK receive Universal Credit from the Department for Work and Pensions (DWP). The upcoming modifications involve an increase in the standard allowance, which is the fundamental amount provided in Universal Credit before any additional payments or deductions.
However, new Universal Credit claimants will face significant cuts to the health-related element. The transition from older legacy benefits to Universal Credit is underway, with all individuals expected to be transferred by March 2026. Universal Credit is replacing various benefits such as Tax Credits, Jobseeker’s Allowance, Income Support, Employment and Support Allowance, and Housing Benefit.
Individuals required to shift to Universal Credit will receive a “migration notice” by mail, setting a three-month deadline to commence their claim. Certain exceptions allow for the continuation of old benefits, like Housing Benefit in supported or temporary accommodation situations.
Starting from April, the Universal Credit standard allowance will see a 6.2% increase, exceeding the inflation rate. For single individuals aged 25 and above, the standard allowance will rise from £92 to £98 per week, while for couples, it will increase from £145 to £154 weekly. The DWP estimates that by 2029, above-inflation increases will result in an average £775 cash boost in the standard allowance.
The health element, Limited Capability for Work and Work-Related Activity (LCWRA) in Universal Credit, currently set at £97 per week, will see changes for new claimants from April 2026. New claimants awarded LCWRA will receive £50 weekly, frozen at this rate until 2029/30. Existing claimants will retain the £97 weekly top-up until 2030 without annual increments. By 2030, the LCWRA element will be replaced with a new health component linked to PIP.
In April 2026, a new subgroup within LCWRA, the Severe Conditions Category (SCC), will be introduced for individuals with severe, lifelong disabilities and illnesses. Claimants in this category will receive the current higher rate of the LCWRA element and will be exempt from routine reassessments, focusing on the impact of their condition rather than the condition itself.