Millions of people receiving Universal Credit across the UK are set to see changes to their monthly benefit payments from April 2027. The Department for Work and Pensions (DWP) has confirmed new benefit rates for the 2027/28 financial year, with working-age and disability-related benefits scheduled to increase by 3.5%.
The changes are part of the Government’s annual benefit uprating process, which adjusts payments to reflect changes in living costs. Most of the new rates will take effect from April 12, 2027, although some payment arrangements may depend on individual benefit schedules.
Universal Credit standard allowances will receive an additional increase under the Universal Credit Act 2025, meaning claimants could see a larger adjustment than the standard inflation-linked rise alone.
The new rates are particularly relevant for households managing rent, food, energy bills and other essential expenses. Universal Credit currently supports more than 8.4 million people across the UK, including employed workers, unemployed claimants and people unable to work because of health conditions or caring responsibilities.
Increase
The Government has confirmed that most working-age and disability benefits will increase by 3.5% from April 2027.
The adjustment follows the annual Consumer Prices Index (CPI) inflation rate for September 2026. CPI is an important measure used by the Government when determining how much certain benefits should increase each year.
According to the Office for National Statistics’ inflation data, the September inflation figure provides the basis for the annual uprating of inflation-linked benefits.
Universal Credit standard allowances will also receive an additional uplift under legislation introduced through the Universal Credit Act 2025.
This means the monthly amount available to eligible claimants will increase across different household categories, including single people and couples.
However, the actual Universal Credit payment received by each household may differ depending on income, savings, housing costs, childcare expenses and other circumstances.
Rates
The new Universal Credit standard allowances for 2027/28 will vary according to the claimant’s age and whether they are claiming individually or jointly.
The following table compares the existing monthly rates with the announced 2027/28 amounts.
| Claimant category | Current monthly rate | 2027/28 monthly rate |
|---|---|---|
| Single, under 25 | £338.58 | £353.87 |
| Single, 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 |
The figures show that single claimants aged under 25 will receive an increase of £15.29 per month.
Single claimants aged 25 and over will receive an additional £18.31 monthly. For couples where both partners are aged 25 or over, the standard allowance will increase by £28.74 per month.
These amounts represent the standard allowance only. Eligible households may receive additional Universal Credit support depending on their circumstances.
Eligibility
Universal Credit is a means-tested benefit designed to help people with living costs when they are on a low income, out of work or unable to work.
It has gradually replaced several older benefits, including income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit and Working Tax Credit.
The DWP has continued its managed migration programme, which moves eligible people from older benefit systems onto Universal Credit.
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 unemployed.
Some working households receive Universal Credit because their earnings are not sufficient to cover their eligible living costs.
Other claimants may have limited or no work expectations because of health conditions, disabilities or caring responsibilities.
The amount paid depends on individual eligibility and the household’s financial circumstances. Therefore, receiving the new standard allowance does not automatically mean every claimant will receive the same total monthly payment.
Pension
The Government has also confirmed changes to State Pension payments for the 2027/28 financial year.
Unlike most working-age benefits, which will rise by 3.5%, the basic and new State Pensions are scheduled to increase by 3.9%.
This adjustment follows the annual increase in Average Weekly Earnings (AWE) recorded between May and July 2026.
The State Pension uprating is linked to the Government’s triple lock policy, which generally increases pensions by the highest of average earnings growth, inflation or 2.5%, subject to the applicable rules.
The Office for National Statistics’ earnings statistics provide information about changes in average wages used in the annual assessment.
Pension Credit savings credit maximum amounts will also increase by 3.5%.
These changes are relevant to older people who receive additional support through the benefit system, particularly those with limited retirement income.
Payments
Work and Pensions Secretary Pat McFadden confirmed the new benefit rates in a statement to Parliament following the Budget.
He explained that the updated rates would apply during the 2027/28 tax year, with most changes taking effect from April 12, 2027.
The statement also confirmed that the 3.5% increase would cover most working-age benefits, disability-related support, statutory payments and additional State Pension.
This includes payments such as Statutory Sick Pay and Statutory Maternity Pay, along with other benefits covered by the Government’s annual review.
Claimants should remember that the uprating applies to eligible benefit amounts rather than guaranteeing an identical increase in every person’s final payment.
For example, changes in earnings, deductions, housing costs or household circumstances can affect the amount of Universal Credit received each month.
Budget
The higher Universal Credit rates may provide additional support to households dealing with rising living costs. However, the increase should be considered alongside other financial changes affecting claimants.
For people receiving Universal Credit while working, changes in wages and working hours can influence their final entitlement. Similarly, households receiving housing support may see their overall payments affected by eligible rent and other deductions.
Claimants can review their individual circumstances through their online Universal Credit account and report changes when required.
The DWP’s official Universal Credit guidance provides information about eligibility, payment calculations, reporting responsibilities and how to manage a claim.
Overall, the 2027/28 benefit changes will increase Universal Credit standard allowances for millions of eligible households. The additional uplift under the Universal Credit Act 2025 means the revised rates will provide a higher standard allowance than the existing payment levels. Claimants should check their individual statements from April 2027 to understand how the changes will affect their actual monthly income.
