The UK Government is set to deliver one of the most significant increases to Universal Credit in recent years, with payments expected to rise by £725 a year from April 2026. This change is aimed at easing the financial burden on millions of low-income households struggling with the cost of living crisis.
In this in-depth guide, we’ll cover who will benefit, how the rise will be calculated, payment dates, and what it means for your household budget.
Why This £725 Universal Credit Rise Matters
For many households, Universal Credit is a lifeline. It covers essential living costs such as rent, food, and energy bills. With inflation still impacting everyday prices, a £725 annual increase could mean the difference between staying afloat and falling behind.
This isn’t just a percentage adjustment — it’s a direct reflection of the government’s attempt to respond to economic pressures faced by working-age families.
How the £725 Increase Will Be Applied
The Department for Work and Pensions (DWP) typically adjusts Universal Credit rates each April, based on the Consumer Prices Index (CPI) inflation rate from the previous September.
Here’s how the 2026 increase is expected to work:
- Annual rise: Around £725 per household on average.
- Monthly boost: Roughly £60 more per month, depending on your circumstances.
- Targeted uplift: Larger households, claimants with children, and those with disabilities could see higher total gains.
This rise will be automatic for existing claimants — no separate application will be required.
Who Will Benefit Most
The following groups are likely to see the most impact from the £725 rise:
- Single parents – who often face higher living costs.
- Households with young children – especially those under five.
- People with disabilities or long-term health conditions – who qualify for additional Universal Credit elements.
- Low-income workers – whose wages are supplemented by Universal Credit.
Current Universal Credit Rates vs. 2026 Rates
| Household Type | Current Monthly Rate (2025) | Expected Monthly Rate (2026) | Annual Change |
|---|---|---|---|
| Single (25+) | £393 | £453 | +£720 |
| Couple (Joint Claim, 25+) | £617 | £677 | +£720 |
| Single Parent with 1 Child | £693 | £753 | +£720 |
| Couple with 2 Children | £1,048 | £1,108 | +£720 |
(Figures are estimates based on a £725 average annual rise and CPI projections.)
Impact on Cost of Living Pressures
Even with inflation expected to fall below 3% in 2026, UK households continue to face high housing costs, energy prices, and food bills. The extra £725 will:
- Provide relief for families balancing rent and utility payments.
- Help reduce reliance on food banks.
- Support parents with school uniform, transport, and childcare costs.
How to Check if You Qualify for Universal Credit
You may be eligible if:
- You are on a low income or unemployed.
- You are over 18 (in most cases) and under State Pension age.
- You have less than £16,000 in savings or investments.
You can check eligibility via the official GOV.UK Universal Credit page.
Payment Dates for 2026
The rise will be effective from the first assessment period starting on or after 6 April 2026. Payments are made:
- Monthly in England, Wales, Scotland (excluding certain Scottish claimants who opt for twice-monthly)
- Twice monthly in Northern Ireland
If your payment date falls on a bank holiday, the DWP will usually pay you earlier.
Additional Support Available Alongside Universal Credit
If you receive Universal Credit, you may also be entitled to:
- Housing Benefit (if in supported or temporary accommodation)
- Council Tax Reduction
- Free school meals for children
- Cost of Living Payments (if still available in 2026)
- Help with childcare costs
Steps to Prepare for the 2026 Increase
- Review your Universal Credit statement – to understand your current award.
- Report any changes in circumstances – such as a new job, change in rent, or childcare costs.
- Update your budgeting – factor in the additional monthly income for bills or savings.
- Seek advice – if unsure, contact Citizens Advice or a welfare rights adviser.
Common Questions About the £725 Universal Credit Rise
Will I need to apply for the extra money?
No. The DWP will apply the new rates automatically.
Could my payment still go down?
Yes, if your income increases or circumstances change, the DWP may reduce your Universal Credit despite the rate rise.
Is this a one-off boost?
No. This is a permanent increase in the baseline Universal Credit rates, linked to inflation.
Final Thoughts
The £725 Universal Credit rise in 2026 is a welcome development for millions, but it’s not a silver bullet for the cost of living crisis. It will help households manage rising costs, yet many will still need to budget carefully and explore other forms of support.
If you’re currently claiming or think you may be eligible, now is the time to check your details and prepare for the April 2026 changes.
FAQs
Q: How much is Universal Credit going up in 2026?
A: Around £725 per year on average, depending on your household type.
Q: Who decides the increase?
A: The Department for Work and Pensions, based on September CPI inflation.
Q: Will part-time workers benefit?
A: Yes, if they meet eligibility requirements, part-time workers can see an increase.
Q: Can I claim Universal Credit if I’m self-employed?
A: Yes, but your payments may be affected by the Minimum Income Floor.
Q: What should I do if I think my payments are wrong?
A: Contact the DWP immediately via your Universal Credit journal.
