Millions of people receiving Universal Credit across the UK are set to see changes to their monthly payments from April 2027. The Department for Work and Pensions (DWP) has published its latest benefit rate review, outlining increases for working-age claimants, people with disabilities and other groups receiving government support.
The new rates will mainly take effect from April 12, 2027, with inflation-linked benefits increasing by 3.5%. Universal Credit standard allowances will also receive an additional increase under the Universal Credit Act 2025, providing a further adjustment beyond the usual inflation-linked rise.
For households relying on Universal Credit to cover rent, food, energy bills and other essential expenses, the updated rates could make a difference to monthly budgets. However, the actual amount each claimant receives will continue to depend on their age, household circumstances, income and eligibility for additional support.
Increases
The DWP’s annual review confirms that most working-age benefits and certain disability-related payments will increase by 3.5% from April 2027.
The adjustment follows the Consumer Prices Index (CPI) inflation rate recorded for September 2026.
According to the Office for National Statistics’ September 2026 inflation report, the annual CPI figure provides the inflation measure used for uprating several benefits.
Universal Credit will receive an additional adjustment under the Universal Credit Act 2025. This means the standard allowance increases will reflect both the inflation-linked adjustment and the additional statutory uplift.
The changes are particularly relevant for people who depend on Universal Credit as their primary source of income.
Rates
The new Universal Credit standard allowances for the 2027-28 tax year will depend on whether someone claims individually or jointly and whether they are under or over 25.
The announced monthly rates are:
| Claimant category | Current monthly rate | 2027-28 monthly rate |
|---|---|---|
| Single person under 25 | £338.58 | £353.87 |
| Single person aged 25 or over | £424.90 | £443.21 |
| Joint claimants both under 25 | £528.34 | £551.11 |
| Joint claimants both aged 25 or over | £666.97 | £695.71 |
These figures represent the standard allowance rather than the total amount every household will receive.
For example, a single claimant aged 25 or older will see their standard monthly allowance increase from £424.90 to £443.21.
This represents an additional £18.31 per month before any applicable deductions.
Similarly, couples where both partners are aged 25 or older will see their standard allowance increase by £28.74, bringing the monthly amount to £695.71.
The final Universal Credit payment may be higher if the household qualifies for additional elements, such as housing support, childcare assistance or disability-related payments.
Eligibility
Universal Credit is a means-tested benefit designed to help people with living costs when they have a low income, are unemployed or cannot work.
Eligibility depends on several factors, including household income, savings, living arrangements and personal circumstances.
The benefit is available to working-age individuals and households who meet the relevant conditions. People can receive Universal Credit while employed, provided their income and circumstances meet the eligibility requirements.
The programme has also become an increasingly important part of the UK’s welfare system as the DWP continues moving people from older benefits to Universal Credit through its managed migration programme.
According to the figures provided, more than 8.4 million people currently claim Universal Credit across the UK.
Around 2.2 million claimants are in employment, demonstrating that the benefit is not limited to people who are out of work.
Others receive support because of health conditions, disabilities or caring responsibilities that affect their ability to work.
Additional
The standard allowance is only one part of the Universal Credit payment.
Depending on individual circumstances, eligible claimants may receive additional amounts for housing costs, children, childcare and certain health-related needs.
For example, households responsible for children may qualify for additional child-related support. People with disabilities or long-term health conditions may also qualify for extra assistance depending on their assessment and circumstances.
However, these additional elements are subject to specific eligibility rules.
The DWP calculates the final payment by considering the claimant’s standard allowance, additional elements and any deductions that apply.
Employment income can also affect the amount received. Universal Credit payments generally reduce as earnings increase, although eligible claimants may benefit from work allowances and other adjustments.
This means the announced standard allowance should not be treated as a guaranteed monthly payment for every claimant.
Pensions
The DWP review also includes changes to State Pension payments.
The basic and new State Pensions are scheduled to increase by 3.9% from April 2027, following the annual growth in average weekly earnings.
This adjustment is separate from the 3.5% increase applying to most working-age benefits.
According to the Office for National Statistics’ Average Weekly Earnings data, earnings growth provides the relevant measure for this part of the annual pension uprating process.
Other benefits and payments covered by the DWP review will also receive adjustments.
These include:
- Most working-age benefits.
- Disability-related benefits.
- Statutory Sick Pay.
- Statutory Maternity Pay.
- Additional State Pension.
- Pension Credit Savings Credit maximum amounts.
The Universal Credit Act 2025 provides the legislative framework for the additional adjustment to Universal Credit standard allowances.
Payments
The new rates will mainly come into effect from April 12, 2027. Claimants should therefore pay attention to the dates when their individual assessment periods and payments are updated.
Universal Credit is generally paid monthly, although some claimants may receive payments more frequently under alternative arrangements.
The amount deposited into a claimant’s account can vary because of changes in earnings, housing costs, household circumstances and other deductions.
People receiving Universal Credit should regularly check their online accounts for updates and report relevant changes to avoid incorrect payments or unexpected adjustments.
Planning
The April 2027 Universal Credit increases will provide higher standard allowances for millions of eligible claimants. The additional uplift under the Universal Credit Act 2025 means the revised rates will reflect more than the usual inflation-linked adjustment.
However, the increase in the standard allowance does not mean every household will receive the same additional amount, as individual payments depend on income, age, household composition and eligibility for extra support. Claimants should review their updated statements, check whether they qualify for additional elements and consider the revised rates when planning their household budgets for the 2027-28 tax year.
