Next year, significant changes are set to impact millions of Universal Credit claimants in the UK. Universal Credit, managed by the Department for Work and Pensions (DWP), is currently utilized by over eight million individuals. The alterations involve an increase in the standard allowance, which constitutes the fundamental amount provided in Universal Credit before any supplementary payments or deductions are factored in.
However, new Universal Credit claimants can anticipate noteworthy cuts to the health-related element. The transition from older legacy benefits to Universal Credit is ongoing, with the final migration expected to be completed by March 2026. This replacement process encompasses benefits such as Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to switch to Universal Credit will receive a “migration notice” via post, permitting a three-month window to initiate the claim process. Exceptions exist where certain old benefits may persist, such as the ability to continue claiming Housing Benefit for those in supported or temporary accommodations.
Effective April of the coming year, the Universal Credit standard allowance will surge by 6.2%, surpassing the inflation rate. For instance, the standard allowance for a single person aged 25 and above will increase from £92 to £98 weekly, while for couples, it will rise from £145 to £154 weekly. Projections by the DWP indicate that by 2029, above-inflation boosts will augment the average standard allowance by £775 in cash terms.
The Limited Capability for Work and Work-Related Activity (LCWRA) within Universal Credit caters to individuals with health issues or disabilities limiting their work capacity. Currently set at £97 per week, new claimants awarded LCWRA from April 2026 will only receive £50 weekly, remaining frozen at this rate until 2029/30. Existing claimants will retain the £97 weekly top-up until 2030, with no annual increments. By 2030, the LCWRA element will be phased out, replaced by a new health element correlated to PIP.
In April 2026, a fresh subgroup within LCWRA, named the Severe Conditions Category (SCC), will be introduced for individuals with severe, lifelong disabilities and illnesses. Members of SCC will receive the current higher rate of the LCWRA element and will be exempt from routine reassessments. Assessment criteria will focus on the impact of conditions on claimants rather than the nature of the conditions themselves.
