Universal Credit claimants in the UK are set to receive a significant boost to their payments in 2026, with an increase of up to £725 being planned. This change is part of the government’s efforts to adjust benefits in line with the rising cost of living and to provide extra support for low-income households. For millions of people relying on Universal Credit, this could make a meaningful difference to monthly budgets. Here’s everything you need to know about the upcoming increase, who will qualify, and what it could mean for your finances.
What Is Universal Credit?
Universal Credit is a government benefit designed to support people who are on low income, out of work, or unable to work due to certain circumstances. It combines several previous benefits into one monthly payment, including Jobseeker’s Allowance, Housing Benefit, Child Tax Credit, and Working Tax Credit. This makes it easier for claimants to manage their support and ensures that payments adjust automatically when earnings change.
The 2026 £725 Increase Explained
The planned £725 rise in Universal Credit payments will be rolled out in 2026. This increase is expected to apply to the standard allowance, meaning most claimants will see a direct boost in their monthly benefit amount. While the exact payment schedule and breakdown have not yet been confirmed by the Department for Work and Pensions (DWP), early indications suggest that the rise will be distributed evenly across the year.
For example, if the £725 increase is spread equally, it could mean around £60 more per month for eligible claimants. This extra support is intended to help offset rising energy bills, rent costs, and food prices.
Why Is This Increase Happening?
There are two main reasons behind the planned rise. First, inflation in the UK has been pushing up everyday costs for households, and benefits need to reflect these changes to ensure people are not left struggling. Second, the government is responding to public pressure to do more for low-income families, especially after a challenging few years marked by high living costs, pandemic-related disruptions, and economic uncertainty.
The £725 rise is part of a broader welfare support strategy aimed at preventing poverty and ensuring that Universal Credit remains an effective safety net.
Who Will Be Eligible for the Rise?
The increase will apply to most people currently receiving Universal Credit, but there will be specific eligibility criteria. You may qualify if you:
- Are of working age and currently claiming Universal Credit.
- Meet the income and savings requirements set by the DWP.
- Have provided all necessary up-to-date information to the DWP, including proof of income and housing details.
People on legacy benefits who are moved to Universal Credit before or during 2026 are also expected to receive the updated payment rates.
How Much Will You Get After the Increase?
The exact amount you will receive after the £725 increase depends on your personal circumstances. Universal Credit payments vary based on factors such as your age, whether you have children, and whether you have a disability or health condition that affects your ability to work.
For example:
- Single claimants aged 25 or over could see their annual payment rise from around £5,000 to over £5,725.
- Couples may see an even larger total increase, depending on their current allowance.
- Additional elements for housing costs, children, and disabilities will still apply on top of the new standard allowance.
When Will the New Payments Start?
The DWP has indicated that the increase will be implemented from April 2026, in line with the start of the new financial year. Payments will be automatically adjusted, so claimants will not need to reapply or submit a separate claim for the increase. However, it’s important to make sure your Universal Credit account details are correct to avoid delays.
How to Check If You’re Getting the Increase
You can confirm your eligibility and check your updated payment details through your online Universal Credit account. The DWP usually updates payment information a few weeks before changes take effect. If you do not have online access, you can contact the Universal Credit helpline for assistance.
Will the Increase Affect Other Benefits?
In most cases, the rise in Universal Credit will not reduce other benefits you receive. However, if your total income increases significantly, it could affect means-tested benefits such as Council Tax Reduction or certain housing support schemes. It’s worth checking with your local council to understand if any adjustments will be made to your other support.
Impact on UK Households
For many UK households, this £725 increase could provide much-needed breathing room in their finances. Rising rent, higher energy prices, and the cost of essentials have put pressure on millions of people. This rise, though not a complete solution to the cost of living crisis, represents a step towards helping families cope.
Economists note that while such increases help in the short term, broader measures to control inflation and improve wages are needed for lasting financial stability.
Preparing for the 2026 Change
If you are currently receiving Universal Credit, there are a few steps you can take to make the most of the upcoming increase:
- Review your budget and plan for how you will use the extra funds.
- Check your account details in the Universal Credit portal to ensure they are correct.
- Seek advice from local support organisations if you are unsure how the changes will affect you.
What If You’re Not on Universal Credit Yet?
If you are struggling financially but are not yet receiving Universal Credit, it may be worth checking if you qualify. You can apply online through the government website, and if you become eligible before April 2026, you will benefit from the increased payment rate once it is implemented.
Public Reaction to the Rise
The announcement of the £725 rise has been met with mixed reactions. Many claimants welcome the boost, seeing it as long overdue given the rising costs of living. Others argue that while the increase is helpful, it still falls short of what is needed to match inflation and living expenses in the UK.
Campaigners continue to push for more frequent reviews of benefit levels to ensure they keep pace with real-world costs.
Conclusion
The planned £725 increase in Universal Credit payments from 2026 is a significant step for millions of UK claimants. While it may not solve all financial challenges, it provides essential relief for those struggling with rising expenses. If you receive Universal Credit, the rise will likely be applied automatically to your payments, starting in April 2026. Staying informed and prepared will ensure you make the most of this change and understand how it fits into your overall financial situation.