The Department for Work and Pensions (DWP) has confirmed four major Universal Credit changes set to begin in 2026, aiming to overhaul the current benefits system and deliver better long-term support.
These changes could impact nearly four million households, offering a significant income boost and reshaping how health-related elements of Universal Credit are distributed.
Universal Credit Standard Allowance to Rise Above Inflation
If the Universal Credit Bill currently being debated in Parliament passes, the standard allowance for Universal Credit will see a permanent increase above inflation starting from April 2026.
- A single adult aged 25 or over could receive an additional £725 annually by 2029/30.
- This will be the largest real-terms increase to the base level of out-of-work support since 1980, according to the Institute for Fiscal Studies.
This measure is intended to address the growing gap between benefits and the actual cost of living, which has burdened many low-income households in recent years.
Health-Related Top-Up Will Be Reduced for New Claims
Starting April 2026, the health-related element of Universal Credit for new claimants will be cut from £105 to £50 per week.
- This change will not impact existing claimants.
- The DWP argues the change will eliminate “perverse incentives” that discourage people from working or seeking improvements in their health conditions.
This adjustment will align the support system with Labour’s proposed welfare overhaul to encourage economic participation while continuing to support those in genuine need.
Protection for Existing Health Element Claimants
While new claimants will receive a reduced health top-up, current recipients of the health element in Universal Credit will retain the higher rate.
- Individuals assessed under the Severe Conditions Criteria or under Special Rules for End of Life (SREL) will continue receiving full health support.
- This protection ensures the most vulnerable individuals, especially those with lifelong or terminal illnesses, are not penalized.
Exemptions from Reassessments for Severely Ill Claimants
To reduce stress and administrative burdens, the DWP proposes exempting certain individuals from ongoing reassessments:
- Those with lifelong, progressive, or terminal conditions will no longer be required to undergo regular reviews.
- This means claimants with severe disabilities or terminal illnesses will receive more stability and long-term assurance in their benefit support.
Summary of Universal Credit Changes for 2026
| Change | Details |
|---|---|
| Standard Allowance Rise | Above-inflation increase, worth £725 annually by 2029/30 |
| Health Element for New Claims | Reduced to £50/week from April 2026 |
| Protection for Current Health Claimants | Higher payments retained for existing claimants under strict conditions |
| Exemption from Reassessments | Applies to those with lifelong or terminal illnesses |
These four upcoming changes mark a major shift in the Universal Credit system, with the DWP aiming to balance economic incentives and social protection.
While many households may benefit from the increased standard allowance, others—especially new health-related claimants—will need to prepare for reduced weekly payments. For those already receiving support due to severe or terminal conditions, protections remain in place, offering critical relief.
As always, staying informed and checking your benefit status regularly is essential to ensure you’re receiving everything you’re eligible for.
FAQs
When will the Universal Credit changes take effect?
The proposed changes are scheduled to begin in April 2026, pending final approval of the Universal Credit Bill in Parliament.
Will existing Universal Credit recipients lose their health top-up?
No. Existing claimants under the health element will retain their higher payment, and severe cases will be exempt from reassessments.
How much will the Universal Credit standard allowance increase by?
For a single adult aged 25 or over, the annual increase is estimated at £725 by 2029/30, if inflation continues as projected.