Overview
- The DWP acknowledged staff errors in treating pension contributions in Universal Credit assessments, revised one award by about £110 a month, and says guidance has been updated to prevent repeat mistakes.
- From April 6, 2026, Universal Credit standard allowances will increase (for example, singles 25+ to £424.90 a month and couples 25+ to £666.97), reflecting a 2.3% statutory rise plus the September inflation uplift.
- The two-child limit will be removed from April 2026, allowing additional child elements for third and subsequent children, though the overall benefit cap will still apply.
- The LCWRA element for new awards from April 6, 2026 will fall from £423.27 to £217.26 a month, with existing recipients protected on the higher rate after the reporting window closed in early January.
- State pensions will rise by 4.8% from April 2026, HMRC will reclaim Winter Fuel Payments from households with incomes above £35,000 via adjusted tax codes, the Warm Home Discount extends to all UC claimants, and around 760,000 eligible people are still not claiming Pension Credit as processing times improve toward the 50‑day target.