The Department for Work and Pensions (DWP) has confirmed that new payment rates for the 2026/27 financial year came into effect on April 6. This includes the revised payment amounts for 8.3 million people claiming Universal Credit.

As reported by the Daily Record, reforms outlined in the Universal Credit Act seek to rebalance the core payment and health top-up in Universal Credit. The Act will see the Universal Credit standard allowance permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over.

Full details on all the new payment rates for benefits delivered by the DWP can be found on GOV.UK.

Most benefits, including Universal Credit, are paid one calendar month in arrears, which means most claimants will not receive the full new amount until after the first payment cycle following April 6 has been completed.

This means most Universal Credit claimants may not see the new payment rates land in their bank accounts until May, at the earliest.

Universal Credit payment rates 2026/27

Rates shown are monthly unless stated otherwise.

Limited Capability for Work

• Limited Capability for Work amount: £158.76 (no change)
• Limited Capability for Work and Work-Related Activity amount: £217.26 (from £423.27)
• Limited Capability for Work and Work-Related Activity amount (Pre-2026 claimant, severe conditions criteria claimant or claimant who is terminally ill): £429.80

Carer amount: £209.34 (from £201.68)

• Higher work allowance (no housing amount) – One or more dependent children or limited capability for work: £710.00 (from £684.00)
• Lower work allowance – One or more dependent children or limited capability for work: £427.00 (from £411.00)

The full list of additional elements and redactions or deductions for Universal Credit payments can be found on GOV.UK.

Measures in the Universal Credit Act

The DWP said rebalancing of Universal Credit health and standard elements to address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency through:

• Increasing the Universal Credit standard allowance above inflation for the next four years – worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
• Reducing the health element top-up for new claims to £217.25 per month from April 2026.
• Ensuring all existing recipients of the Universal Credit health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher Universal Credit health payment after April 2026.
• Exemptions from reassessment for those with the most severe, lifelong conditions.

The DWP said the reforms will address the ‘fundamental imbalance in the system which creates perverse incentives that drive people into dependency’.