How much universal credit will I be entitled to after the welfare bill changes?
The Universal Credit and Personal Independence Payment Bill — designed to change the amount people claiming these benefits are entitled to — has changed dramatically since it was first unveiled in March.
Most notably, the planned reforms to personal independence payments (PIP) were shelved this week (meaning the bill has had to be renamed the Universal Credit Bill).
So if you're still playing catch-up, here's what the bill could mean for your universal credit payments – and in turn, what you'll now be entitled to.
For those claiming universal credit, the standard allowance — meaning the basic rate of universal credit before any other payments are added — will increase for new and existing claimants.
The universal credit standard allowance rates will rise above inflation.
However, it will take a while for these changes to come into effect. They are due to kick in in 2026/27, and rise year-on-year until 2029/30.
For a single person over 25 claiming on their own, this will increase by £7 per week from £91pw in 2024/2025 to £98pw in 2026/2027.
If you're interested in the maths behind the numbers, this the government's formula: taking the annual consumer price index inflation rate and adding an additional uplift (2.3% more in 2026/27, 3.1% more in 2027/28, 4.0% more in 2028/29, and 4.8% more in 2029/30).
One of the biggest impacts of the bill is on universal credit claimants receiving the health component of the benefit.
Called the limited capability for work and work-related activity (LCWRA) component, the payment provides additional financial support and reduced work-related requirements for individuals whose health conditions or disabilities prevent them from working or preparing for work.
Claimants can vary, and may have a terminal illness, cancer or be pregnant.
The LCWRA rate will be frozen at £97 per week from April next year, and not increased in line with inflation until 2029/30.
However, to push the bill through, work and pensions secretary Liz Kendall confirmed the universal credit health top-up payments will rise in line with inflation each financial year. This rate will vary - for example, last year's rate was 1.7%.
After April 2026, the LCWRA rate will be halved for new claimants.
The amount will be reduced to £50 per week in 2026/2027 for new claimants, totalling no more than £200 compared to current claimants, who receive £388 a month.
Disability equality charity Scope say that under these changes, more than 700,000 future universal credit health claimants would receive on average £3,000 less support each year than claimants do now.
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