Overview
- From 6 April 2026, the standard allowance increases by 2.3%, with monthly rates rising to £338.58 for single under‑25s and £424.90 for those 25 and over, and to £528.34 or £666.97 for couples depending on age.
- The LCWRA element for new awards will be set at £217.26 per month from April 2026, while existing LCWRA recipients and those meeting severe or end‑of‑life criteria remain protected on the higher rate.
- The government will scrap the two‑child limit in Universal Credit from April 2026, allowing payments for third and subsequent children, though the overall benefit cap stays in place.
- A DWP impact assessment cited the previous LCWRA level exceeding the standard allowance as a distortion, with officials aiming to encourage employment by rebalancing support.
- The final window to report a health condition for the higher LCWRA rate closed on 5 January 2026, and wider reforms continue through 2026 with managed migration from legacy benefits while PIP remains unchanged.