DWP hands Universal Credit households £297.12 extra cash from April

Universal Credit households will receive up to £297.12 extra cash from April as the Department for Work and Pensions (DWP) rolls out new payment rates.

As part of efforts to “bear down on the cost of living”, almost four million households on the standard rate of Universal Credit will be handed an above-inflation increase to payments in the 2026/27 tax year, which began on April 6. The uplift takes the single rate for claimants aged 25 or over from £400.14 per month up to £424.90. This amounts to an extra £24.76 each month, or £297.12 extra cash per year.

The rate for single claimants under 25 also increased from April 6, taking the rate from £316.98 per month to £338.58, giving claimants an extra £21.60 per month, or around £259.20 more per year.

As for couples claiming Universal Credit, the joint rate for those under 25 has gone up from £497.55 per month to 528.34 as of April 6 – an increase of £30.79 per month, or around £369.48 per year – and the joint rate for those aged 25 or over is now worth to £666.97, up from £628.10 – giving claimants an extra £38.87 per month, or around £466.44 annually.

The uplift is part of the Government’s focus on tackling the cost of living and will see nearly four million households on the standard rate of Universal Credit receive the first sustained above-inflation increase to the benefit from this month.

The DWP said: “The boost is worth around £295 extra this year in cash terms for a single person aged 25 or over, rising to £760 by the end of the decade, and means those who are searching for and in work will have more money in their pocket as they look to get into and on at work.”

As part of the welfare reforms that came into force on April 6, the DWP introduced a lower Universal Credit health element rate of £217.26 per month for new claimants, compared to the higher rate of £429.80.

Those with the most severe, lifelong conditions, those nearing the end of life, and all existing Universal Credit health claimants will continue to receive the higher rate, no matter when they claim.

The DWP said the change is to give people the support they need to progress and move into secure jobs, and to boost living standards.

Minister for Social Security and Disability Sir Stephen Timms said on Monday (April 6): “The welfare system we inherited has for too long locked disabled people and people with long term conditions out of work.

“Laws coming into force today will change that, reducing projected expenditure on Universal Credit by almost £1 billion.

“Simultaneously boosting the standard allowance and investing £3.5 billion in employment support means we’re creating a welfare system that backs people to work and helps them build a better future.”