UK government introduces £217 change to Universal Credit

The Department for Work and Pensions (DWP) has confirmed major changes affecting Universal Credit claimants as the government ‘rebalances’ the benefits system.

Universal Credit legislation was laid in Parliament on Monday 9 February that introduces a new, lower Universal Credit health element rate of £217.26 per month for new claimants.

This is substantially lower than the higher rate of £429.80 that will continue to be provided to all existing Universal Credit health claimants.

Newer claimants who do not have severe, lifelong conditions or are nearing end of life will receive the new lower health element rate.

The government said it is introducing this change to tackle ‘perverse incentives’ where someone on health benefits is paid more than twice as much as a single person looking for work while not receiving any support for finding a job.

New Universal Credit rates

In addition to introducing a new lower health benefit rate, the government will also provide the first above-inflation increase to the standard rate of Universal Credit.

This base rate increase will see a single person aged over 25 receive more than £295 extra this year.

Below are the new Universal Credit rates effective from April 2026:

• Single Claimants: £424.90 (£338.58 for under-25s)
• Joint Claimants: £666.97 (£528.34 for under-25s)
• Child Amounts: £303.94 for first and subsequent children
• Limited Capability for Work: £158.76
• Limited Capability for Work and Work-Related Activity: £217.26 (£429.80 for pre-2026 claimant, claimant with severe conditions, or terminally ill claimant.
• Carer Amount: £209.34
• Higher Work Allowance: £710
• Lower Work Allowance: £427

“The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them,” said Work and Pensions Secretary Pat McFadden.

“These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so.”

“By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future,” he said.

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