Millions of people claiming Universal Credit are set to receive a higher monthly payment next year, after the Department for Work and Pensions (DWP) confirmed the new benefit rates.
The Government has published its annual review of benefit payments, setting out how much claimants will receive from April 2027.
Working-age and disability benefits will rise by 3.5%, with the new rates mainly coming into effect from April 12, 2027.
Inflation-linked benefits and tax credits will rise by 3.5% from April 2027, in line with the annual increase in the Consumer Prices Index (CPI) rate of inflation for September 2026.
Universal Credit standard allowances will receive an additional uplift as specified in the Universal Credit Act 2025.
The basic and new State Pensions will be uprated by 3.9% from April 2027, in line with the annual increase in the Average Weekly Earnings (AWE) index for May–July 2026.
Universal Credit allowances in 2027/28
Universal Credit is currently paid to more than 8.4 million people across the UK. Due to the increase in line with CPI, and the additional uprating factor, in 2027/28 Universal Credit standard allowances will increase:
- From 338.58 to £353.87 per month for single people aged under 25
- From £424.90 to £443.21 per month for single people aged 25 and over
- From £528.34 to £551.11 per month for joint claimants both aged under 25
- From £666.97 to £695.71 per month for joint claimants both aged 25 and over
Universal Credit is a means-tested benefit designed to help with living costs for people on a low income, out of work or unable to work. The number of people claiming it has increased as the DWP continues its managed migration programme, which is moving people from older benefits onto the newer system.
Around 2.2 million Universal Credit claimants are in employment, while a significant number of others are not expected to work because of health conditions or caring responsibilities.
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Work and Pensions Secretary Pat McFadden confirmed the increases in a statement to Parliament following the Budget.
He said: “The new rates will apply in the tax year 2027-28 and will mainly come into effect from April 12 2027.
“The other state pension and benefit rates covered by my statutory review will be increased by 3.5%, in line with the increase in the consumer prices index in the year to September 2026.
“This includes most working-age benefits and other benefits for people below state pension age; benefits to help with additional needs arising from disability; statutory payments including statutory sick pay and statutory maternity pay; and additional state pension. The pension credit savings credit maximum amount will also increase by 3.5%.”
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