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Universal Credit Overhaul From April 2026 Raises Core Rate, Cuts Most New Health Top-Ups

A multi-year plan resets payments to shift support from LCWRA towards a higher basic rate.

Overview

  • From April 2026, the standard allowance rises 6.2%, taking the weekly rate to £98 for a single adult over 25 and £154 for a couple, with the DWP projecting a £775 cash uplift by 2029.
  • For most new LCWRA awards, the health element falls to £217.26 a month (about £50 a week) and remains frozen through 2029/30 before being replaced by a PIP-linked health element by 2030.
  • A new Severe Conditions Category protects people with the most serious lifelong or terminal conditions, who keep the higher LCWRA rate and are spared routine reassessments.
  • The government removes the two-child limit from April 2026, allowing families to receive the Universal Credit child element for every child.
  • The DWP plans to complete the migration of remaining legacy benefit recipients to Universal Credit by March 2026, with migration notices giving households three months to claim.