Millions of Universal Credit claimants could be affected by significant changes set to take place next year. Universal Credit, managed by the Department for Work and Pensions (DWP), is currently utilized by over eight million individuals in the UK.
One of the key alterations includes an increase in the standard allowance, which represents the fundamental payment amount in Universal Credit before any adjustments are made.
Conversely, forthcoming cuts will impact the health-related component for new Universal Credit applicants. The transition to Universal Credit from older legacy benefits is ongoing, with completion expected by March 2026.
Universal Credit is replacing various benefits such as Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit. Upon receiving a “migration notice,” individuals have a three-month period to commence their Universal Credit claims.
The standard allowance in Universal Credit is scheduled to rise by 6.2% in April, exceeding the inflation rate. For instance, the standard weekly allowance for single persons aged 25 and above will climb from £92 to £98.
Furthermore, the Limited Capability for Work and Work-Related Activity (LCWRA) component, which supports individuals with health challenges limiting their work capacity, will undergo changes. New LCWRA claimants will receive £50 per week starting April 2026, with this rate to remain static until 2029/30.
Existing claimants will witness their top-up fixed at £97 per week until 2030 without annual increments. By 2030, the LCWRA element will be phased out and replaced by a new health component tied to PIP.
Additionally, a new subgroup termed the Severe Conditions Category (SCC) will be introduced in April 2026 for individuals with severe, enduring disabilities. Members of the SCC will receive the current higher rate of the LCWRA element and will be exempt from routine reassessments.
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