How much is Universal Credit, PIP and state pension increasing in April?
As the cost of living continues to rise in the UK, this month’s inflation figure is particularly important for the finances of millions of households.
This week, it was seen that the September inflation rate (CPI) was announced as 3.8 percent. As always, this is the amount most benefits will increase in April to reflect rising prices.
This includes basic disability benefits such as PIP, care allowance and carer’s allowance as a legal requirement.
But there will also be some unprecedented changes to universal credit this year. While everyone will see the standard allowance increase above inflation for the first time, the health-related element has been greatly reduced.
Here’s how much benefits and state pensions will increase in April 2026:
state pension
The state pension is expected to increase by 4.8 percent from next April, in line with annual earnings growth.
For the full new state pension, this will increase the weekly amount from £230.25 to £241.30, around £965.20 per month or £12,547.60 per year. This is just below the £12,570 income tax personal allowance threshold, so it will remain tax-free.
The full basic state pension rises from £176.45 per week to £184.92, equating to around £739.68 or £9,615.84 per year.
universal credit
The standard UC rate was adjusted to achieve an above-inflation increase of 6.2 percent; Here’s what this means for claimants:
- Single, under 25s: £316.98 to £336.63 (+£19.65) per person
- Single, over 25s: £400.14 to £424.95 (+£24.81)
- Partners both under 25: £497.55/cm to £528.40 (+£30.85)
- One or both partners over 25: £628.10/cm to £667.04 (+£38.94)
Universal Credit health element (frozen or cut)
From April, the monthly payment rate for the health-related element of universal credit for new applicants will be reduced from £105 to £50.
The surcharge for existing beneficiaries of this element will be frozen at £97 per week until 2029/30.
These changes follow the passage of the government’s Universal Credit Act, which greatly reduced the health-related element while increasing the standard allowance of the benefit.
Personal independence payment (PIP)
The PIP payment rate is expected to increase by 3.8 percent in April, in line with inflation. For one or both parts of health and disability benefits, both at a higher and lower rate. Here’s what upgrading means:
- Daily living, lower weekly rate: £73.90 – £77.45
- Daily living, higher weekly rate: £110.40 – £115.70
- Mobility, lower weekly wage: £29.20 – £30.60
- Mobility, higher weekly wage: £77.05 – £80.75
retirement loan
The ‘guaranteed’ amount of the pension credit is usually increased in line with the triple lock guarantee of the state pension. This means it should increase by 4.8 percent.
Unlike many other benefits, the pension credit is not paid at a set rate, but instead supplements the person’s income up to a guaranteed minimum amount. From April 2026 this is expected to rise from £227.10 to £238 per week.
carer’s allowance
In April, caregiver allowance is expected to increase by 3.8 percent in line with inflation. This will rise from £83.30 to £86.47 a week.
Attendance Allowance
Attendance allowance will rise with inflation from £110.40 to £114.60 a week in April.
Housing benefit (frozen)
Unlike most other benefits, housing benefit is paid by local authorities to households in their area. The amount each council pays depends on local housing benefit (LHA) rates, which are calculated by the DWP based on private rental costs in that area.
After ending four years of freezes and re-pegging rates at the cheapest 30 per cent of local rents in April 2024, the Labor government announced LHA rates would be frozen again.
This means that no one receiving housing benefit should expect this benefit to increase in April 2026.
For the latest benefit and pension payment dates, as well as cost of living support, visit The Independent’s regularly updated guide
