Kylie
Millions of Universal Credit claimants are set to benefit from a new government proposal promising a guaranteed income boost of up to £725 per year.
The newly introduced legislation will deliver above-inflation increases to the Universal Credit standard allowance, helping households battle rising living costs from 2026 to 2030.
However, these boosts arrive alongside significant changes to health-related benefits, sparking mixed reactions across the country.
What’s Included in the £725 Income Boost?
The upcoming income changes will affect Universal Credit claimants aged 25 and over, particularly those receiving the standard allowance. The government has committed to increasing benefits by more than the rate of inflation for four consecutive years, starting from April 2026.
The compounded increases are designed to provide £725 more per year by 2030 than if they were only inflation-based.
Breakdown of Annual Increase
| Year | Increase Over Inflation | Estimated Annual Gain |
|---|---|---|
| 2026–2027 | 2.3% | £110 |
| 2027–2028 | 3.1% | £150 |
| 2028–2029 | 4.0% | £200 |
| 2029–2030 | 4.8% | £265 |
| Total | — | £725 |
Over 4 million households are expected to benefit from this direct uplift.
Key Changes to Disability Support
While standard claimants receive a boost, there’s a freeze and reduction coming for those on the Limited Capability for Work and Work-Related Activity (LCWRA) component, which supports people with severe disabilities or chronic health conditions.
- From April 2026, the LCWRA rate will be frozen at £97/week.
- New claimants after this date will receive just £50/week—almost half the current rate.
- Those with severe or lifelong disabling conditions will be placed in a protected category and retain their existing payments.
These changes are intended to reform disability-related support, but many believe it will disproportionately affect vulnerable groups.
Eligibility and What You Need to Know
To qualify for the £725 income increase, claimants must:
- Be on Universal Credit
- Meet age and household eligibility standards
- Not fall under the exempted reassessment disability category if applying post-2026
For new disability benefit applicants from April 2026, reduced payouts could make budgeting even more challenging.
What This Means for You
If you’re a Universal Credit recipient, here’s what you should prepare for:
- Standard claimants will benefit from steady increases starting in 2026.
- Health-related component recipients should check their reassessment status.
- New claimants may face reduced financial assistance, especially those with long-term health issues.
- Start budgeting ahead and check eligibility updates frequently.
The £725 Universal Credit income boost is welcome news for millions of UK households struggling with ongoing cost-of-living challenges.
However, the simultaneous cuts to health-related benefits raise concerns for many disabled individuals.
With changes starting in April 2026, it’s crucial to stay informed, assess your eligibility, and prepare for how these changes could affect your finances. The new bill offers both hope and caution, depending on your circumstances.
FAQs
Who qualifies for the £725 Universal Credit increase?
Anyone receiving the standard Universal Credit allowance and meeting age/household eligibility will qualify for the gradual increase starting in 2026.
Will disability benefits also increase?
No. In fact, the LCWRA component will be frozen for current claimants and reduced for new ones applying after April 2026.
What’s the timeline for these changes?
The increase begins in April 2026 and continues through April 2030, with different annual uplift percentages for each year.