The Department for Work and Pensions (DWP) is preparing for a major overhaul of Universal Credit (UC) in 2026, introducing six key changes aimed at simplifying payments, strengthening work incentives, and rebalancing welfare spending.
For millions of households, the reforms will reshape how benefits are calculated and delivered. While some claimants will see higher core payments, others — particularly new applicants with health-related conditions — will face lower top-ups.
According to the DWP, these changes are part of a “long-term plan to make work pay, modernise digital services, and protect the most vulnerable.” Experts call the reforms “the biggest welfare shift since Universal Credit was launched.”
“Universal Credit must evolve to reflect modern work and health realities,” said Sarah Smith, Director of Welfare Strategy at the DWP. “We’re making it simpler, fairer, and more sustainable for future generations.”
Introduction to the 2026 Universal Credit Reforms
Starting April 2026, the UK’s benefits system will move away from automatic inflation-linked adjustments. Instead, it will adopt structural reforms that directly target key issues such as work disincentives, incapacity dependency, and outdated assessment rules.
This follows the final 1.7% inflation-linked rise in June 2025, marking the end of annual CPI-based updates. The 2026 reforms will introduce six major changes that will permanently alter Universal Credit’s design and delivery.
Key Features / Overview
| Feature | Details (Effective April 2026) |
|---|---|
| Higher Standard Allowance | Increase from £91 to £98 per week for single adults aged 25+ |
| LCWRA Freeze for Existing Claimants | £97/week (or £423/month) rate frozen until 2029/30 |
| Work Incentive Protection | Claimants can try employment without automatic reassessment |
| Reduced LCWRA for New Claims | £50/week cap for new health-related claims |
| Extra Premium for Severe Conditions | Permanent top-up for lifelong disabilities |
| More Jobcentre Engagement | Increased work coach contact and tailored employment support |
| Implementation Date | April 2026 (staged rollout) |
| Administered by | Department for Work and Pensions (DWP) |
1. Higher Standard Allowance
From April 2026, the standard Universal Credit allowance will increase for all working-age adults.
A single claimant aged 25 or over will see their base payment rise from £91 to £98 per week, equivalent to roughly £7 extra weekly or £364 annually.
This is part of the government’s aim to strengthen the core value of UC rather than relying on multiple add-ons. The increase will also reduce the gap between health-related and standard payments.
“This increase recognises ongoing living cost pressures while simplifying the benefit’s structure,” said John McDonnell, a social policy analyst at the London School of Economics.
2. Freeze for Existing LCWRA Claimants
The Limited Capability for Work and Work-Related Activity (LCWRA) element, currently set at £97 per week, will be frozen for existing recipients until at least 2029/30.
This means:
- Current claimants will retain their entitlement.
- Payments will not rise with inflation, effectively reducing real-term value over time.
The DWP says this freeze provides “stability and predictability” for existing claimants while gradually phasing in lower rates for new applicants.
However, charities warn that the freeze amounts to a stealth cut during a period of persistent inflation.
3. Safeguards for Work Incentives
One of the most widely praised changes involves stronger protections for claimants who try to return to work.
Under the current system, people risk losing their LCWRA entitlement if they take up employment. From April 2026, claimants will be able to test work opportunities without triggering a full reassessment.
This reform will:
- Allow claimants to work part-time or flexibly without losing health-related support.
- Extend the six-month reclaim rule, letting people resume their UC rate if they leave work for medical reasons.
“This strikes the right balance between encouraging work and protecting people with fluctuating health conditions,” said Dr. Emma Rudd, Policy Director at Citizens Advice.
4. Reduced LCWRA Payments for New Claims
From April 2026, new LCWRA applicants will receive £50 per week, down from £97.
The government argues this change will:
- Simplify the benefit system.
- Realign incentives between work and welfare.
- Focus higher payments on those with severe and permanent disabilities.
While the standard allowance increase partially offsets the reduction, most new claimants will see smaller total awards.
Charities estimate that nearly 300,000 new claimants could lose up to £2,400 annually due to this change.
| Claimant Type | 2025 Rate (Before Reform) | 2026 Rate (After Reform) | Annual Difference |
|---|---|---|---|
| Existing LCWRA Claimant | £97/week | £97/week (frozen) | £0 immediate loss |
| New LCWRA Claimant | £97/week | £50/week | -£2,444/year |
| Single 25+ UC Claimant (Standard) | £91/week | £98/week | +£364/year |
5. Extra Premium for Severe Conditions
To protect the most vulnerable, the DWP will introduce a “Severe Condition Premium” for people with lifelong disabilities or terminal illnesses.
This premium will:
- Provide additional monthly support (amount to be confirmed by late 2025).
- Exempt recipients from reassessments.
- Guarantee long-term financial stability.
The policy is expected to benefit approximately 200,000 people who currently face repeated health reviews.
“For years, disabled people have faced intrusive reassessments. This change finally acknowledges their right to security,” said James Taylor, CEO of Scope UK.
6. More Jobcentre Engagement
From 2026, claimants will be expected to engage more regularly with Jobcentre work coaches. The focus will be on career guidance, skill development, and health management support rather than sanctions.
Key features include:
- Personalized work plans for LCWRA claimants.
- Regular digital check-ins and quarterly reviews.
- Work allowance protection allowing claimants to earn up to £673/month (£404 with housing support) without benefit deductions.
The DWP says this approach reflects a “support-first model”, balancing encouragement with empathy.
Future Reforms Beyond 2026
The DWP’s reform roadmap extends beyond 2026.
By 2028/29, the government plans to abolish the Work Capability Assessment (WCA) altogether.
Instead, eligibility for health-related UC payments will depend on whether the claimant receives the daily living component of Personal Independence Payment (PIP).
This change will:
- Reduce bureaucratic overlap between UC and PIP.
- Simplify claims and reassessments.
- Potentially reduce the number of people qualifying for UC health top-ups.
Analysts expect the WCA’s removal to save the government £3–4 billion annually by 2030.
Why These Reforms Matter?
The DWP says the goal is to modernize welfare while rewarding work. The reforms are designed to:
- Encourage employment for people with partial work capacity.
- Simplify overlapping benefit structures.
- Ensure fairness for taxpayers and claimants.
- Protect the most vulnerable through new premiums.
Economists, however, remain divided.
“The government faces a difficult balancing act — promoting work without punishing illness,” said Professor Paul Johnson of the Institute for Fiscal Studies (IFS).
“While higher core payments are welcome, cutting disability support risks widening inequality,” added Alison Garnham, Chief Executive of the Child Poverty Action Group (CPAG).
Recent Timeline
| Date | Event |
|---|---|
| June 2025 | Final 1.7% CPI-linked increase applied to UC |
| April 2026 | Six key reforms begin (higher allowance, reduced LCWRA, new premiums) |
| September 2026 | Enhanced Jobcentre engagement introduced |
| 2028–2029 | Work Capability Assessment abolished |
| 2029–2030 | LCWRA freeze ends, new review scheduled |
FAQs
1. When will the new Universal Credit rules take effect?
All six changes begin from April 2026, with some elements phased in through 2029.
2. Will I get more money under the new system?
Most working-age claimants will receive higher core payments, but new health-related claimants will receive less support than current rates.
3. What happens to my LCWRA benefit?
If you already receive LCWRA, your rate stays at £97 per week but will be frozen until 2029.
4. How does the severe condition premium work?
It gives additional long-term support to people with lifelong or terminal health conditions and removes the need for repeated reassessments.
5. Will the Work Capability Assessment still exist?
Not after 2028. Eligibility will be tied to PIP daily living instead of the WCA.
6. How will I know about these changes?
The DWP will contact claimants directly through their Universal Credit journal and official letters before rollout.