Exact date 6.7million households on Universal Credit to get inflation-busting payment boost
Almost seven million households claiming the benefit will see their standard allowance rise by more than inflation from April 2026.
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This change will become law, pending Parliamentary approval of the DWP's Universal Credit and Personal Independence Payment Bill, which was introduced earlier this week.
This means 6.7 million households could receive around £750 more per year in cash by 2030.
The standard allowance is the basic payment for households on Universal Credit.
Currently, single people under 25 receive £316.98 a month and couples under 25 get £497.55 a month.
Meanwhile, single people over 25 get £400.14 a month and couples aged 25 or older receive £628.10 a month.
Normally, benefit payments go up each spring to help people keep pace with the rising cost of living, like food, fuel, and household bills.
These increases typically match the consumer price index of inflation from the previous September.
But, the government has claimed that the four-year benefit freeze from 2015 to 2019 has caused millions of payments to fall behind rising inflation.
As a result, from April 2026, the government wants to hike the standard allowance by more than inflation over the next four years.
This means that by 2030, the amount a claimant receives will be almost 5% higher than if it had only risen to match inflation.
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The increases will be worked out by adding the inflation rate from the previous September, plus an extra fixed boost.
These extra percentages will be set at:
2.3% for 2026-27
3.1% for 2027-28
4.0% for 2028-29
4.8% for 2029-30
The government wants to help more people return to work and rely less on incapacity benefits, which face huge cuts.
To save £5billion a year by 2030, it plans to make PIP assessments stricter and freeze the extra health payments in Universal Credit for those unable to work.
The government believes that raising the standard allowance for everyone while reducing the health top-up will make returning to work more financially worthwhile and possible.
What is the Universal Credit standard allowance?
UNIVERSAL Credit is a welfare scheme which was designed to combine several of the old "legacy benefits
The standard allowance is the basic monthly payment provided to individuals or families who qualify.
The amount you receive depends on your age and whether you're single or in a couple:
Single, under 25: £316.98
Single, 25 or over: £400.14
Couple, both under 25: £497.55
Couple, one or both 25 or over: £628.09
You may also be eligible for additional amounts if you have children, have a disability or health condition, or need help with housing costs.
Meanwhile, around 400,000 households receiving income-related employment and support allowance (ESA) are being urged to make the move to Universal Credit.
The government is progressing with its plans to transfer all legacy benefit claimants onto Universal Credit, through a process referred to as "managed migration."
The managed migration process officially began back in July 2022 after a successful pilot in July 2019.
Since then, households receiving one of five legacy benefits, have been receiving postal notifications outlining the steps required to transition to Universal Credit.
Upon receiving a migration letter, claimants are given up to three months to make the switch.
Failure to act within this timeframe could result in the loss of existing benefits.
The latest data from the Department for Work and Pensions (DWP) shows that 381,440 individuals lost their benefits after failing to act within this time frame.
Initially, the government planned to transfer all ESA claimants to Universal Credit by the end of 2028.
However, this deadline was brought forward to March 2026.
How can I get help claiming Universal Credit?
As well as benefit calculators, anyone moving from ESA to Universal Credit can find help in a number of ways.
You can visit your local Jobcentre by searching at find-your-nearest-jobcentre.dwp.gov.uk/.
There's also a free service called Help to Claim from Citizen's Advice:
England: 0800 144 8 444
Scotland: 0800 023 2581
Wales: 08000 241 220
You can also get help online from advisers at citizensadvice.org.uk/about-us/contact-us/contact-us/help-to-claim/.
Will I be better off on Universal Credit?
ANALYSIS by James Flanders, The Sun's Chief Consumer Reporter:
Around 1.4million people on legacy benefits will be better off after switching to Universal Credit, according to the government.
A further 300,000 would see no change in payments, while around 900,000 would be worse off under Universal Credit.
Of these, around 600,000 can get top-up payments (transitional protection) if they move under the managed migration process, so they don't lose out on cash immediately.
The majority of those - around 400,000 - are claiming employment support allowance (ESA).
Around 100,000 are on tax credits, while fewer than 50,000 each on other legacy benefits are expected to be affected.
Those who move voluntarily and are worse off won't get these top-up payments and could lose cash.
Those who miss the managed migration deadline and later make a claim may not get transitional protection.
The clock starts ticking on the three-month countdown from the date of the first letter, and reminders are sent via post and text message.
There is a one-month grace period after this, during which any claim to Universal Credit is backdated, and transitional protection can still be awarded.
Examples of those who may be entitled to less on Universal Credit include:
Households getting ESA and the severe disability premium and enhanced disability premium
Households with the lower disabled child addition on legacy benefits
Self-employed households who are subject to the Minimum Income Floor after the 12-month grace period has ended
In-work households that worked a specific number of hours (e.g. lone parent working 16 hours claiming working tax credits
Households receiving tax credits with savings of more than £6,000 (and up to £16,000)
Either way, if these households don't switch in the future, they risk missing out on any future benefit increase and seeing payments frozen.
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