The UK Department for Work and Pensions (DWP) has confirmed the proposed new payment rates for Universal Credit, effective from April 2026. This change affects approximately 8.4 million people currently receiving Universal Credit benefits. The new rates come in conjunction with the annual increase, which the DWP estimates will provide close to four million households with an average income boost of about £725 annually under the new Universal Credit Act.

Key adjustments in the Universal Credit Act include increases to the core payment and health top-up allowances. Notably, the DWP anticipates that the standard allowance for a single person aged 25 or over will rise permanently above inflation, projected to reach £725 in cash terms by the fiscal year 2029/30. This is an important stride toward ensuring that Universal Credit payments keep pace with living costs, thereby enhancing financial support for recipients.

Detailed information regarding all revised payment rates for other benefits administered by DWP has been made available on the official GOV.UK website. It is noteworthy that most benefits, including Universal Credit, are disbursed in arrears, indicating that most claimants will need to wait to receive these new payment rates until after the changes take effect in 2026.