From April 2026, most UK benefit payments, including Universal Credit, PIP, State Pension, Carer’s Allowance, and others will increase in line with inflation.
The increases aim to provide better financial support amid rising living costs, though not all benefits are affected equally.
Key points:
- Universal Credit standard allowances and work allowances are going up
- PIP daily living and mobility components will see modest rises
- The State Pension increases by 4.8% under the triple lock
- Carer’s Allowance and DLA receive above-average uplifts
- Bereavement Support Payments and Benefit Cap remain unchanged
- Capital limits and tariff income rules stay the same
- Non-dependant deductions and support premiums are revised
- Pension Credit minimum guarantees rise for singles and couples
These changes apply automatically for most existing claimants.
What Are the Key Increases in Universal Credit for 2026/27?
Universal Credit is intended to support people on low incomes or out of work. For 2026/27, the standard allowances, child elements, and additional amounts have been increased compared with 2025/26. These increases are designed to partly reflect inflation and changes in living costs.
For a detailed breakdown of all Universal Credit figures, you can read this comprehensive review of Universal Credit benefit rates for 2026/27.
Universal Credit Standard Allowances (Monthly)
| Universal Credit Type | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| Single under 25 | 316.98 | 338.58 | 21.60 |
| Single 25 or over | 400.14 | 424.90 | 24.76 |
| Joint claimants both under 25 | 497.55 | 528.34 | 30.79 |
| Joint claimants one or both 25 or over | 628.10 | 666.97 | 38.87 |
The standard allowance increases, while not dramatic, do represent consistent uprating aimed at helping claimants manage basic costs. As these amounts are paid monthly, even modest uplifts can contribute to covering essential expenditure.
Universal Credit Child and Additional Elements
| Benefit Element | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| First child (born before 6 April 2017) | 339.00 | 351.88 | 12.88 |
| First child (born on or after 6 April 2017) | 292.81 | 303.94 | 11.13 |
| Disabled child (lower rate) | 158.76 | 164.79 | 6.03 |
| Disabled child (higher rate) | 495.87 | 514.71 | 18.84 |
| Carer amount | 201.68 | 209.34 | 7.66 |
There are also changes to work allowances, which determine how much you can earn before your Universal Credit payment is reduced:
- Higher work allowance (no housing element): 684.00 to 710.00
- Lower work allowance: 411.00 to 427.00
These changes reflect adjustments intended to support claimants who are in work or transitioning into work. It is important to note that the more you earn above the work allowance, the more your Universal Credit payment will be reduced at the standard taper rate.
“Government professionals have emphasised that these upratings aim to balance support with incentives to work. They explain that the increased work allowance thresholds help people retain more of their income as they increase their earnings.”
Bullet points summarising key Universal Credit increase features:
- Standard allowances increased for all age categories and household types
- Child elements receive incremental increases
- Disabled child additions are increased to reflect support needs
- Work allowances have been adjusted upward to reduce early‑stage withdrawal of benefits
These changes mean that many Universal Credit claimants will see a slight increase in their monthly payment compared with 2025/26.
How Much Will PIP Rates Increase in 2026/27?
Personal Independence Payment (PIP) provides financial support to people with long‑term health conditions or disabilities. It is split between two components: daily living and mobility. Each component has standard and enhanced rates.
For a detailed look at how PIP rates change in 2026/27 compared with the previous year, see this PIP rates overview for 2026 to 2027.
PIP Rates Comparison
| PIP Component | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| Daily living (enhanced) | 110.40 | 114.60 | 4.20 |
| Daily living (standard) | 73.90 | 76.70 | 2.80 |
| Mobility (enhanced) | 77.05 | 80.00 | 2.95 |
| Mobility (standard) | 29.20 | 30.30 | 1.10 |
The increases are proportionate across the daily living and mobility components. These changes aim to help recipients better cover costs associated with disability‑related expenditure.
Key points about PIP rate increases:
- Enhanced rates are particularly important for claimants with the highest support needs
- The standard mobility rate has a smaller increase compared with the enhanced mobility rate
- The daily living component sees better proportional increases to recognise the cost of daily care needs
“From my experience engaging with claimants, even small increases in PIP are significant because these payments are directly linked to costs associated with disability and mobility challenges. Beneficiaries often allocate these funds to specific support needs that cannot be easily reduced.”
Although the rate increases are not large in cash terms, they do represent recognition of ongoing costs faced by people with disabilities. Claimants should check their PIP entitlements each year to ensure they are receiving correct payments.
What’s Changing in the State Pension Rates for 2026/27?
State Pension increases are usually based on the triple lock mechanism, which means pensions increase by the highest of wage growth, price inflation, or 2.5 per cent. This mechanism has historically ensured that pensioners do not see their incomes eroded by inflation.
For detailed rates of State Pension increases and how they compare with previous years, see this article on the State Pension increase for 2026‑27.
State Pension Increases
| Pension Type | 2025/26 (£) | 2026/27 (£) | Percentage Change |
|---|---|---|---|
| New State Pension (full rate) | 230.25 | 241.30 | 4.80 |
| Old State Pension (Category A/B) | 176.45 | 184.90 | 4.80 |
| Old State Pension (lower spouse rate) | 105.70 | 110.75 | 4.80 |
State Pension increases are often among the most impactful changes for older citizens because many pensioners rely on this income as their principal support.
Important aspects of State Pension rate changes:
- New State Pension increases are applied to those who reached State Pension age on or after the new system was introduced
- Old State Pension rates also increase, maintaining purchasing power
- Increases are typically applied from April each year
“Government professionals have clarified that the triple lock remains a central element of pension uprating because it protects pensioners against the worst impacts of inflation. This means that when inflation is high, pensions rise accordingly.”
Pensioners should verify that the uprating applies correctly, and anyone with additional entitlements, such as Pension Credit, should check combined effects.
What’s New for Carer’s Allowance and Disability Living Allowance?
Carer’s Allowance helps people who spend significant time caring for someone with substantial care needs. Disability Living Allowance (DLA) continues to support disabled people and children with care and mobility needs.
Carer’s Allowance
| Benefit | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| Carer’s Allowance | 83.30 | 86.45 | 3.15 |
Disability Living Allowance (DLA) – Highest Care
| DLA Component | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| Highest care | 110.40 | 114.60 | 4.20 |
These increases support carers and people with disabilities by recognising that costs associated with care and disability‑related needs do not decrease over time. Although Carer’s Allowance is not the highest benefit amount, it can provide vital support for carers who may have limited opportunities for paid work because of their responsibilities.
Points to consider regarding Carer’s Allowance and DLA:
- Carer’s Allowance can be paid alongside certain other benefits, but overlapping rules may affect total payment amounts
- Disability Living Allowance rates have been uprated consistently across care and mobility elements
- Claimants should check how increases affect any income‑related benefits they may also receive
Will Attendance Allowance and Bereavement Support Be Affected?
Attendance Allowance supports people who have reached State Pension age and need help with personal care. Bereavement Support Payment provides short‑term financial support following the death of a partner.
Attendance Allowance
| Rate | 2025/26 (£) | 2026/27 (£) | Change (£) |
|---|---|---|---|
| Higher rate | 110.40 | 114.60 | 4.20 |
| Lower rate | 73.90 | 76.70 | 2.80 |
Bereavement Support Payment
| Bereavement Benefit | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| Standard lump sum | 2,500.00 | 2,500.00 |
| Monthly standard | 100.00 | 100.00 |
| Higher lump sum | 3,500.00 | 3,500.00 |
| Monthly higher | 350.00 | 350.00 |
Attendance Allowance increases align with uprating across other benefits for older claimants. Bereavement Support Payment remains unchanged because the benefit is intended as short‑term support rather than ongoing income replacement.
Points to note:
- Attendance Allowance applies only to those of State Pension age or older with substantial care needs
- Bereavement Support Payment rules depend on the death date and eligibility criteria, and the unchanged rates reflect the policy choice to keep this benefit fixed for a period
These support mechanisms work alongside other benefits to provide a comprehensive safety net where appropriate.
Have Capital Limits and Tariff Income Rules Changed?
Capital limits affect claimants of income‑related benefits, including Income Support, income‑based Jobseeker’s Allowance (JSA), income‑related Employment and Support Allowance (ESA), and Housing Benefit.
Capital Limits (Common Rules)
| Category | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| Upper capital limit | 16,000.00 | 16,000.00 |
| Amount disregarded | 6,000.00 | 6,000.00 |
| Child disregard (not ESA/HB) | 3,000.00 | 3,000.00 |
| Residential care disregard | 10,000.00 | 10,000.00 |
There are no changes to these capital thresholds or the amount disregarded. Tariff income rules, which estimate assumed weekly income from capital over certain thresholds, also remain the same:
- Assumed income of £1 for every £250 or part thereof between the capital disregard and the upper capital limit
The consistency in capital limits provides claimants with predictability in planning their finances.
Considerations about these unchanged limits:
- Maintaining the same thresholds means claimants with savings or property will not face additional income assumptions purely due to uprating
- Some claimants with capital near the upper limit may find their benefit eligibility unchanged, which simplifies planning
No annual revision of these figures for 2026/27 reflects policy decisions to focus on direct benefit payment rates rather than capital thresholds.
What Deductions Apply to Benefits in 2026/27?
Various deductions continue to be applied to benefits, particularly where non‑dependant adults live in the household or certain costs must be accounted for before final payment amounts are calculated.
Non‑Dependant Deductions (Examples)
| Gross Income Band (£) | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| <192 | 19.65 | 20.40 |
| 192 to 278.99 | 45.15 | 46.85 |
| 279 to 364.99 | 62.00 | 64.35 |
| 365 to 484.99 | 101.35 | 105.20 |
| 485 to 604.99 | 115.45 | 119.85 |
| 605+ | 126.65 | 131.45 |
Other deductions, such as for service charges, meals, and personal expenses, have also been uprated in line with living costs. These deductions ensure that benefit awards reflect household composition and standard charges.
Important points about deductions:
- Non‑dependant deductions are applied when an adult living with the claimant earns income above certain levels
- Service charges related to fuel and utilities are deducted at standard rates
- Deductions for meals vary according to whether a claimant receives three meals per day or less
Understanding deductions is important because they can significantly affect net benefit payments, especially in larger households.
How Do These Increases Impact Specific Groups Like Pensioners or People with Disabilities?
Certain premiums and allowances provide additional support to specific claimant groups.
Premium Examples
| Premium Type | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| Severe disability (single) | 82.90 | 86.05 |
| Enhanced disability (couple) | 165.80 | 172.10 |
| Pensioner support (single with support component) | 86.55 | 93.95 |
Pension Credit Minimum Guarantee
| Pension Credit | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| Single | 227.10 | 238.00 |
| Couple | 346.60 | 363.25 |
These premiums reflect additional financial support built atop base benefits. They are intended to recognise extra needs, such as higher costs associated with severe disability or additional support required for pensioners with limited resources.
“From my perspective as someone who writes regularly about benefit changes, these premiums can make a real difference in the financial security of vulnerable households. They may not be headline figures but they do reflect targeted policy efforts to provide meaningful support.”
What Has Remained Unchanged in the 2026/27 Benefits Review?
Some benefit parameters remain constant to ensure stability and predictability in the system.
Benefit Cap Levels
| Cap Type | 2025/26 (£) | 2026/27 (£) |
|---|---|---|
| Greater London – couple | 25,323.00 | 25,323.00 |
| Greater London – single | 16,967.00 | 16,967.00 |
| Rest of Great Britain – couple | 22,020.00 | 22,020.00 |
| Rest of Great Britain – single | 14,753.00 | 14,753.00 |
The benefit cap limits total benefit income for certain working‑age households, and there is no change for 2026/27.
Key aspects of unchanged parameters:
- Capital limits remain the same as noted, reducing complexity for claimants planning around savings
- Bereavement Support Payment rates do not change, reflecting their short‑term support nature
- Transitional and supplementary elements in some benefits stay at previous levels, avoiding frequent rule changes
These constancies help claimants and advisers plan without needing to adjust immediately to new thresholds beyond the direct payment upratings already discussed.
Conclusion
The 2026/27 benefits increase provides essential financial support across Universal Credit, PIP, State Pension, and other key allowances.
While the changes are modest, they offer some relief against inflation and rising living costs. It’s important for claimants to stay informed and ensure they’re receiving the correct rates based on their circumstances.
These updates aim to maintain fairness in the welfare system and support those who need it most during ongoing economic pressures.
FAQ
What is the percentage increase for Universal Credit in 2026/27?
It varies by age group and household type but generally reflects an uplift linked to inflation measures.
Will Carer’s Allowance continue to rise each year?
Yes, benefits like Carer’s Allowance are typically uprated annually, but the exact amount depends on government policy decisions.
How do I know if I’m eligible for the new disability premiums?
Eligibility depends on your existing claim type (e.g. ESA, Pension Credit) and whether you meet enhanced or severe criteria.
Has the Benefit Cap changed for London residents?
No, the Benefit Cap figures for both Greater London and the rest of Great Britain remain the same for 2026/27.
What support is available if I still struggle despite increases?
You can check local authority schemes, discretionary payments, or charities that offer crisis support.
Are there changes to the Pension Credit savings thresholds?
No significant changes to savings thresholds were made for Pension Credit in 2026/27.
Do I need to reapply to get the increased rate?
Generally, no, if you are already receiving a benefit, increases are applied automatically, though always confirm with the relevant department.
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