Millions of people on Universal Credit are to get extra amounts from April. The new payment rates for 2025/2026 have been confirmed.
As a result of the 1.7 rise in benefit payments, a typical low-income family is expected to see an extra £253 in their Universal Credit next year as a result, though using the October inflation measure instead of September’s would have added another £74 to this. More than a million claimants will see a separate boost as debt deductions are to be capped at a new level of 15 per cent rather than the existing 25 per cent under a new Fair Repayment Rate policy starting in April.
This move will help 1.2 million families, including 700,000 with children and means some of the poorest households will be £420 better off as a result. Save the Children estimates single parents could receive up to £39 more of their Universal Credit entitlement each month. For two-parent families, this could be up to £62.
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There are currently 7.3 million people on Universal Credit, with numbers going up fast due to people moving across from legacy benefits such as tax credits and Income Support that are being phased out. Tax credits are set to be abolished this April and other old-style benefits will be phased out over the following year.
Nearly three million Universal Credit claimants are not required to work, a figure the Labour Government hopes to target with its Get Britain Working plan and upcoming reforms to health and disability benefits. The total number on the benefit includes 215,000 claimants in Birmingham, of whom 64,000 are in employment, and the other 151,000 are either looking for a job or written off from working on medical grounds.
These are all the new Universal Credit payment rates to come into effect this April, including the various elements you may be entitled to receive and any deductions that could be applied. Although the new rates will kick in on Monday, April 7, you will need a full one-month assessment period starting on or after that date in order to see the higher amounts.
The first claimants to enjoy the increases will be those paid on May 13 after an assessment period spanning April 7 to May 6. Others will see their higher payments arrive later in May or in June.
Universal Credit payment rates 2025/2026
All amounts are per month, as Universal Credit is a monthly benefit paid to a claimant on the same date as when their first payment arrived.
Standard allowance
Single under 25: increasing from £311.68 to £316.98
Single 25 or over: increasing from £393.45 to £400.14
Couple with both under 25: increasing from £489.23 to £497.55
Couple with one or both 25 or over: increasing from £617.60 to £628.10
Child amounts
First child (born prior to April 6, 2017): increasing from £333.33 to £339.00
First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitional provision applies): increasing from £287.92 to £292.81
Disabled child additions
Lower rate addition: increasing from £156.11 to £158.76
Higher rate addition: increasing from £487.58 to £495.87
Incapacity payments
Limited Capability for Work (LCW) amount: increasing from £156.11 to £158.76 (only payable for claims before April 2017)
Limited Capability for Work and Work-Related Activity (LCWRA) amount: increasing from £416.19 to £423.27
Carer element
Increasing from £198.31 to £201.68 (Note that if you also claim the separate benefit Carer’s Allowance, the equivalent monthly amount will be deducted)
Other allowances and deductions
Childcare costs you can claim back
Maximum for one child: increasing from £1014.63 to £1031.88
Maximum for two or more children: increasing from £1739.37 to £1768.94
Non-dependants’ housing cost contributions
This is a deduction for having another person in the household who is expected to contribute towards bills
Increasing from £91.47 to £93.02
Work allowances you can earn before deductions
Higher work allowance (no housing amount) – one or more dependent children or limited capability for work: increasing from £673 to £684
Lower work allowance – one or more dependent children or limited capability for work: increasing from £404 to £411.00
UC Daily Reduction 100 per cent reduction rate
Single under 25: increasing from £10.20 to £10.40
Single 25 or over: increasing from £12.90 to £13.10
Joint claimants both under 25 (per sanctioned claimant): increasing from £8 to £8.10
Joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant): increasing from £10.10 to £10.30
40 per cent reduction rate
Single under 25: increasing from £4 to £4.10
Single 25 or over: increasing from £5.10 to £5.20
Joint claimants both under 25 (per sanctioned claimant): staying the same at £3.20
Joint claimants, one or both 25 or over (per sanctioned claimant): staying the same at £4
For payments of arrears – Third Party Deductions at 5 per cent of UC Standard Allowance (excludes deductions for rent and service charges included in rent)
Single under 25: increasing from £15.58 to £15.85
Single 25 or over: increasing from £19.67 to £20.01
Joint claimants both under 25: increasing from £24.46 to £24.88
Joint claimants, one or both 25 or over: increasing from £30.88 to £31.41
Minimum deductions for rent and service charges included in rent at 10 per ent of UC Standard Allowance (10 per cent minimum introduced from November 2014)
Single under 25: increasing from £31.17 to £31.70
Single 25 or over: increasing from £39.35 to £40.01
Joint claimants both under 25: increasing from £48.92 to £49.76
Joint claimants, one or both 25 or over: increasing from £61.76 to £62.81
Maximum deductions for rent and service charges included in rent at 15 per cent of UC standard allowance (previously 20 per cent)
Single under 25: decreasing from £62.34 to £47.55
Single 25 or over: decreasing from £78.69 to £60.02
Joint claimants both under 25: decreasing from £97.85 to £74.63
Joint claimants, one or both 25 or over: decreasing from £123.52 to £94.22
Overall maximum deduction rate at 15 per cent of UC standard allowance (previously 25 per cent)
Single under 25: decreasing from £77.92 to £47.55
Single 25 or over: decreasing from £98.36 to £60.02
Joint claimants both under 25: decreasing from £122.31 to £74.63
Joint claimants, one or both 25 or over: decreasing from £154.40 to £94.22
Fraud Overpayments, Recoverable Hardship Payments and Administrative Penalties at 15 per cent of UC standard allowance (previously 25 per cent)
Single under 25: decreasing from £77.92 to £47.55
Single 25 or over: decreasing from £98.36 to £60.02
Joint claimants both under 25: decreasing from £122.31 to £74.63
Joint claimants, one or both 25 or over: decreasing from £154.40 to £94.22
Ordinary Overpayments and Civil Penalties at 15 per cent of UC Standard Allowance
Single under 25: increasing from £46.75 to £47.55
Single 25 or over: increasing from £59.02 to £60.02
Joint claimants both under 25: increasing from £73.38 to £74.63
Joint claimants, one or both 25 or over: increasing from £92.64 to £94.22
Ordinary Overpayments and Civil Penalties at 15 per cent of UC Standard Allowance if claimant’s or partner’s earnings are over the Work Allowance (previously 25 per cent)
Single under 25: decreasing from £77.92 to £47.55
Single 25 or over: decreasing from £98.36 to £60.02
Joint claimants both under 25: decreasing from £122.31 to £74.63
Joint claimants, one or both 25 or over: decreasing from £154.40 to £94.22
Transitional disability elements
Transitional SDP (Severe Disability Premium) element (if LCWRA element included in the award): increasing from £140.97 to £143.37
Transitional SDP element (if LCWRA element not included in the award: increasing from £334.81 to £340.50
Transitional SDP element (joint claimants & higher SDP rate payable): increasing from £475.79 to £483.88
Transitional SDP element additional amount for EDP (Enhanced Disability Premium) – single: increasing from £89.63 to £91.15
Transitional SDP element additional amount for EDP – couple: increasing from £128.04 to £130.22
Transitional SDP element additional amount for DP (Disability Premium) – single: increasing from £183.52 to £186.64
Transitional SDP element additional amount for DP – couple: increasing from £262.48 to £266.94
Transitional SDP element additional amount for disabled children: increasing from £188.86 to £192.07
Child Maintenance Deduction
Staying the same at £36.40
Capital limits
Upper limit: staying the same at £16,000
Amount disregarded: staying the same at £6,000
Assumed income from capital for every £250 or part thereof, between capital disregard and upper capital limit: staying the same at £4.35
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