New 2026 rates and dates revealed for universal credit, PIP and end of two-child benefit cap
It has been revealed how much better off millions of Brits will be next year as the Department for Work and Pensions (DWP) revealed how much benefits and pensions will increase.
According to the latest figures, around 24 million people, both working and out of work, benefit from some form of social assistance, accounting for more than a third of the population.
In April 2026, most social benefits will increase by 3.8 percent, in line with the September inflation figure.
At the same time, state pensions paid to approximately 13 million people will increase by 4.8 percent. This adheres to the government’s triple lock guarantee of corresponding annual earnings growth.
Introducing the new rates to parliament, Work and Pensions Minister Pat McFadden said: “I have completed my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the 2026-2027 tax year, with most increases coming into force from 6 April 2026.”
Everything you need to know is here.
How much do the benefits increase?
universal credit
In April 2026, all universal credit claimants will receive an above-inflation income boost of around 6.2 per cent over the standard allowance. Here’s how monthly payment rates change:
- Single person over 25: £400.14 – £424.90 (up to £24.76)
- Single under 25: £316.98 – £338.58 (up to £21.60)
- Couple with one or both partners over 25: £628.10 to £666.97 (increase of £38.87)
- Couple both under 25: £497.55 to £528.34 (£30.79 increase)
Limited capacity for work and work-related activity element (LCWRA)
At the same time, the monthly co-payment rate for the health-related element of universal credit for new applicants will be reduced by around half. The only exceptions will be those who meet the criteria for severe illness or are terminally ill. Rates for existing claimants will also be effectively frozen until 2029.
- Current LCRWA claimants: £423.27 to £429.80 (increase of £6.53)
- New LCRWA claimants: £217.26 (down from £206.01)
P.I.P.
Personal independence payment (PIP) is paid in two possible components, each at two monthly rates:
- Daily living component, standard: £73.90 – £76.70 (up to £2.80)
- Daily living component, enhanced: £110.40 – £114.60 (up to £4.20)
- Mobility component, standard: £29.20 – £30.30 (up to £1.10)
- Mobility component, enhanced: £77.05 – £80.00 (up to £2.95)
housing allowance
Housing benefit has been replaced by the housing element of universal credit for most people, but 1.8 million people still benefit from it.
The amount socially rented tenants can receive for both increases largely in line with housing costs.
The maximum amount of both benefits for private tenants is determined by the local housing benefit (LHA), which the government has refrozen following the temporary reset in 2024. Campaigners criticized the decision.
Private tenants can find out about LHA fees at: Valuation Office Agency’s tool.
attendance allowance
Attendance allowance is paid at one of two weekly rates:
- Lower rate: £73.90 – £76.70 (up to £2.90)
- Higher rate: £110.40 – £114.60 (up to £4.20)
retirement loan
Pension credit can be benefited individually or as a couple. Here are the weekly rates:
- Single: £227.10 – £238.00 (up to £10.90)
- Double: £346.60 – £363.25 (up to £16.65)
carer’s allowance
Carer’s allowance will rise from £83.30 to £86.45 per week (an increase of £3.15).
Employment and support allowance
Employment and support allowance (ESA) is one of the legacy benefits that has been moved to universal credit. People will no longer be able to make a new claim and will have to switch to universal credit when notified by the DWP. However, 1.3 million people still benefit from this aid.
There are two groups an ESA claimant can join:
- Work-related activity group: £92.05 to £95.55 per week (up to £3.50)
- Support group: additional £48.50 to £50.35 per week (up to £1.85)
Disabled living allowance
Disability living allowance has also been changed for most people; With one exception: it remains the main disability benefit for children (under 16).
Similar to PIP, it is paid in two components. However, one is paid at one of three weekly rates, the other at two:
- Maintenance component, lowest price: £29.20 – £30.30
- Maintenance component, medium price: £73.90 to £76.70
- Maintenance component, highest rate: £110.40 to £114.60
- Mobility component, lower fare: £29.20 – £30.30
- Mobility component, higher fare: £77.05 – £80.00
Benefit limit: What you need to know
The aid cap was frozen again for 2026-2027, marking the fourth year in which it has not increased in line with inflation.
This cap puts a limit on the amount of support claimants can receive from the DWP, even if they are more eligible (except for some benefits).
The benefit ceiling varies depending on location and whether the claimant is single and living with children:
Greater London
- Single adult households without children: £1,413.92 per month
- Couples (with or without children) or single claimants with children: £2,110.25 per month
rest of great britain
- Single adult households without children: £1229.42 per month
- Couples (with or without children) or single applicants with children £1,835.00 per month
Benefits that are capped include universal credit, housing benefit, child benefit and more. However, PIP does not take into account income from others such as maintenance allowance and carer’s allowance.
This is different from the two child benefit caps (or limits) that the government announced it would scrap in the autumn budget. The policy prevents parents from claiming the child element of universal credit for any child after their second child and will end in April 2026.
How much will the state pension be increased?
The government has confirmed that pensions will increase by 4.8 per cent from next April, in line with annual earnings growth. The amounts for the new state pension (for those who reached retirement age on or after 6 April 2016) and the old state pension (for all other pensioners) differ:
- New state pension: from £230.25 to £241.05 per week (up to £10.80)
- Old state pension: from £176.45 to £184.90 per week (up to £8.45).
Over a year this will make the value of the old state pension £9,614.8 and the value of the new state pension £12,534.60.
This is just over £34 above the personal income tax threshold, leading many to worry that the value of the state pension will begin to fall when it inevitably exceeds that amount in 2027. This threshold was also frozen in the autumn budget until April 2031, meaning the state pension will continue to rise beyond that.
But speaking to currency expert Martin Lewis after the financial incident, Chancellor Rachel Reeves promised that anyone who only receives a state pension will not have to pay tax on it.
