DWP confirms full list of Universal credit changes to start in April 2026

The Department for Work and Pensions (DWP) has confirmed that from April 2026 onwards millions will be affected by new rules that reshape how much financial support they receive. Approximately four million households will see an annual income boost estimated at £725 following Royal Assent being granted on September 3 to a Bill reforming the welfare system.

The Universal Credit Act 2025 is now officially an Act of Parliament. Reforms outlined in the bill aim to rebalance the core payment and health top-up within Universal Credit. The legislation will permanently raise the Universal Credit standard allowance- the basic amount everyone receives before additional elements are added for children, sickness, or caring responsibilities - will rise above inflation, amounting to £725 in cash terms for a single person aged 25 or over by 2029/30.

This will equate to a cash increase of £725 by 2029/30 for a single person aged 25 or over. According to the Institute for Fiscal Studies (IFS), this represents the highest permanent real terms increase to the main rate of out-of-work support since 1980.

The DWP says that rebalancing the health and standard elements of Universal Credit is designed to tackle the "fundamental imbalance in the system which creates perverse incentives that drive people into dependency" through:

• Raising the Universal Credit standard allowance above inflation for the next four years - estimated at £725 by 2029/30 for a single adult aged 25 or over.
• Reducing the health top-up for new claims to £50 per week from April 2026.
• Ensuring that all existing recipients of the Universal Credit health element - and any new claimant meeting the Severe Conditions Criteria and/or assessed under the Special Rules for End of Life (SREL) - will continue to receive the higher Universal Credit health payment after April 2026.
• Exempting those with the most severe, lifelong conditions from reassessment.

The planned increases are:

• 2.3% in 2026/27
• 3.1% in 2027/28
• 4% in 2028/29
• 4% in 2029/30

Alongside these changes, the DWP has introduced significant new measures, granting individuals receiving health and disability benefits the right to attempt work without fear of reassessment.

The new "Right to Try Guarantee" applies to people with a disability or health condition - such as those recovering from illness - who wish to return to work once their health improves.

The Act also includes measures to safeguard the most vulnerable and severely disabled.