LONDON, January 14, 2026, 06:40 GMT
- Britain’s DWP updated proposed 2026/27 benefit rates, setting out higher Universal Credit standard payments from April 6.
- The health-related LCWRA top-up drops to £217.26 a month for most new recipients, from £423.27 now, while protected claimants keep the higher rate.
- Ministers plan to scrap the two-child limit for Universal Credit from April 2026, but key details are still not confirmed.
Britain’s Department for Work and Pensions updated its proposed 2026/27 benefit rates this week, lifting the core Universal Credit payment from April 6 while cutting the extra health-related amount for most new disabled claimants. (Gov)
The figures set out what claimants can expect ahead of a spring overhaul under the Universal Credit Act 2025, which raises the “standard allowance” paid to all claimants but trims the health element for new awards. (House of Commons Library)
The timing matters because Universal Credit is gradually replacing older benefits such as Housing Benefit, income-related Employment and Support Allowance and income-based Jobseeker’s Allowance, meaning more households end up on the monthly payment. (Citizens Advice)
Under the proposed rates, a single claimant under 25 would see the monthly standard allowance rise to £338.58 from £316.98, while a single claimant aged 25 or over would get £424.90, up from £400.14. Couples’ standard allowances rise to £528.34 (both under 25) and £666.97 (one or both 25 or over), from £497.55 and £628.10 respectively. (Gov)
Ministers have also said they plan to remove the two-child limit for Universal Credit from April 2026, which currently restricts the child element for most families to the first two children. Citizens Advice said the government has not yet confirmed how the change will work in practice. (Citizens Advice)
The bigger flashpoint is the Limited Capability for Work-Related Activity payment, known as LCWRA, which is an extra amount for claimants assessed as not expected to work or prepare for work. The DWP’s proposed tables show that for most people who become entitled on or after April 6, 2026, the monthly LCWRA amount falls to £217.26 from £423.27, while “pre-2026” claimants and some protected groups rise to £429.80. (Gov)
A DWP spokesperson, cited by GB News, said: “These reforms remove the incentive for people to declare themselves unable to work in order to improve their incomes.” GB News reported that a July 2025 impact assessment argued the gap between the standard allowance and the higher LCWRA amount was driving behaviour.
The cut has also turned into a calendar problem. Citizens Advice said the last chance to report a relevant health condition for the higher rate fell between December 6, 2025 and January 5, 2026, depending on a claimant’s circumstances, because there is usually a three-month wait before LCWRA is added. (Citizens Advice)
Disability Rights UK, which has been warning claimants about the deadlines, said the key date varies because Universal Credit runs on individual “monthly assessment periods” and some people had to act in December to stay on track for the higher rate before April. (Disabilityrightsuk)
The House of Commons Library has described a “protected” cohort that includes existing LCWRA recipients and some new claimants who are terminally ill or have severe, lifelong conditions, while noting the reduced rate for most new LCWRA awards is due to be frozen in cash terms through 2029/30. (House of Commons Library)
The changes sit alongside a wider welfare reform push. In a December statement on a separate package of assessment changes, Work and Pensions Secretary Pat McFadden said: “We’re committed to reforming the welfare system we inherited, which for too long has written off millions as too sick to work.” (Gov)
Charities and analysts say the higher standard allowance will still leave many claimants short of essentials. Chris Belfield, chief economist at the Joseph Rowntree Foundation, said “The majority of people on universal credit cannot afford essentials like food, heating and basic toiletries,” while the foundation estimates a gap of around £1,000 a year for single people and £2,000 for couples even after the uplift.
But the DWP’s rates are still labelled “proposed”, and the big unknown for many households is how the transition plays out — from the final rules on the two-child limit change to how quickly work capability assessments are processed. Even small delays can decide whether a claimant lands on the higher protected LCWRA rate or the new lower tier. (Gov)
