The Department for Work and Pensions (DWP) has announced a major increase to Universal Credit. From April 2026, nearly four million households across the UK will benefit from an average annual rise of £725. Experts say this is the biggest real-terms boost for out-of-work support in decades. Along with the increase, the government is introducing new employment support and protections for vulnerable people, making this one of the most significant welfare changes in years.
What the Universal Credit Increase Means
This rise is not just a one-time payment. The Universal Credit Act 2025, which became law earlier this year, ensures permanent increases to payments. The standard allowance for adults, particularly those aged 25 and over, will go up and will continue to rise in line with inflation. The DWP is also making changes to how Universal Credit balances health and standard elements. The goal is to create fairer incentives for people to work while still protecting those who rely on benefits. Analysts have called this the largest real-terms increase in Universal Credit since 1980, offering more stability for households that depend on it.
The “Right to Try” for Disabled People
A key part of the new changes is the “Right to Try Guarantee.” This allows people with disabilities or long-term health conditions to attempt work without risking their benefits or being immediately reassessed. The scheme encourages people to return to work at their own pace, especially those whose conditions fluctuate or who are recovering from illness. By allowing people to test employment opportunities safely, the government is giving claimants more freedom and security while they explore work.
Extra Support for People with Severe Conditions
The new rules also provide strong protections for those with serious or terminal health conditions. About 200,000 people in the Severe Conditions Criteria group will not have to go through reassessments, ensuring they continue to receive financial support. Those with terminal illnesses are guaranteed uninterrupted payments, and their Universal Credit will continue to rise with inflation from 2026/27 through 2029/30. These measures aim to protect the most vulnerable and give them dignity and peace of mind.
How This Will Help Families Long-Term
By linking Universal Credit increases to inflation, households can be more confident that their benefits will keep pace with living costs. This makes it easier for families to plan their budgets, reduces the risk of falling into poverty, and offers more financial stability over time. Experts believe that this change will have a lasting impact, helping households avoid unexpected cost pressures while giving claimants the chance to plan for the future with confidence.
Investing in Jobs and Skills
Alongside the increase in benefits, the DWP is investing £3.8 billion in employment support. This funding will expand programs like Connect to Work and introduce the Pathways to Work Guarantee. These programs offer skills training, health support, and personalized guidance to help people find sustainable work. The aim is to provide claimants with practical opportunities to improve their independence, complementing the financial support of the Universal Credit increase.
Reviewing Disability Assessments
The DWP is also reviewing how Personal Independence Payment (PIP) assessments are carried out. Led by Disability Minister Sir Stephen Timms, the review will involve disabled people, advocacy groups, MPs, and health experts. The goal is to create a fairer, more transparent process that reflects the real needs of disabled claimants. Public input will play a key role, ensuring that reforms are shaped by real experiences rather than policy assumptions.
What People Are Saying
While most welcome the changes, some charities and organizations have expressed concerns. They worry that reducing certain health-related elements for new claimants may leave some people struggling. Turn2us and other advocacy groups are urging the government to carefully balance incentives with the realities of living with long-term illness. Critics stress that the welfare system must make sure no one is left without essentials like food, housing, and medical care, even as reforms aim to modernize support.
A Historic Step in Welfare Reform
The £725 increase marks a historic moment for Universal Credit. By combining financial support with job opportunities and protections for the most vulnerable, the reforms aim to help claimants live more stable, independent lives. With payments linked to inflation and new initiatives for skills and employment, this is seen as a fairer, more flexible approach to supporting those out of work.