Universal Credit: millions hit as April 2026 UC changes cut UK support - but boost payments for many

• Universal Credit payments will change from April 6, 2026 under reforms confirmed in the Budget last year
• Most claimants will see higher monthly payments as the standard allowance increases
• The two-child limit will be scrapped, boosting support for larger families
• New claimants with long-term health conditions will receive a lower LCWRA payment
• The changes aim to rebalance Universal Credit amid ongoing cost-of-living pressures

Universal Credit is set for a significant shake-up from Monday, April 6, 2026, with higher monthly payments for most households but a sharp cut for some claimants with long-term health conditions.

The changes, confirmed in the Budget last year and written into the Universal Credit Act 2025, will affect millions of people, and the impact won’t be felt evenly.

Here’s a clear breakdown of what’s changing, who gains, and who could lose out.

Standard Universal Credit payments are going up

At the heart of every Universal Credit claim is the standard allowance, the basic amount paid before any additional elements, such as housing or children, are added. From April 2026, this core payment will rise across the board.

• Single claimants under 25 will see their monthly allowance increase from £316.98 to £338.58.
• Single claimants aged 25 and over will receive £424.90 a month, up from £400.14.
• Couples where both partners are under 25 will see their joint allowance rise from £497.55 to £528.34.
• Couples where one or both partners are 25 or over will receive £666.97 a month, up from £628.10.

The Government says these increases are designed to help households still struggling with the cost of living, particularly rising food, energy and housing costs.

The two-child limit is being scrapped

One of the biggest and most widely welcomed changes is the removal of the two-child limit for Universal Credit from April 2026.

Currently, families can only receive child-related payments for their first two children (with limited exceptions). From April next year, eligible families will be able to claim the child element for all children, regardless of how many they have.

For larger families, this could mean a substantial boost to monthly income and a major shift in how Universal Credit supports households with children.

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A major cut for new LCWRA claimants

Not everyone benefits from the reforms. The Limited Capability for Work-Related Activity (LCWRA) element is being sharply reduced for new claimants from Monday, April 6, 2026.

LCWRA is paid to people with long-term health conditions or disabilities who are assessed as unable to work or prepare for work. It is currently worth £423.27 a month on top of the standard allowance.

Under the new rules, anyone who becomes entitled to LCWRA on or after April 6, 2026, will receive £217.26 a month, a cut of just over £200.

Existing recipients will continue to receive the higher rate, but the deadline to qualify under the old rules has already passed.

Why the Government is making changes

The Department for Work and Pensions (DWP) says the reforms are meant to rebalance Universal Credit.

An official Impact Assessment found that, in some cases, the LCWRA payment was higher than the basic Universal Credit award, leaving some claimants struggling unless they qualified for the health-related element.

A DWP spokesperson said the changes aim to remove what it described as an incentive for people to declare themselves unable to work to boost their income, while shifting more support into the standard allowance paid to everyone.