The UK government will raise the universal credit standard allowance from 6 April 2026 by about 6.2% (from £92 to £98/week), delivering an average cash boost of £725 next year and benefiting roughly four million households; Chancellor Rachel Reeves said similar above‑inflation top‑ups will continue annually through 2029‑30, an increase the IFS calls the largest real‑terms rise in 46 years. At the same time the limited capability for work and work‑related activity (LCWRA) health element will be halved for new claimants—from £423 to £217/month—and frozen until 2029‑30 (existing recipients and those with severe, life‑threatening conditions exempt), a change the government projects will cost 2.25 million families about £500/year by 2029/30 while 3.9 million other families gain about £265/year; ministers are also reportedly considering removing the health element for under‑22s.
The UK government will raise the universal credit standard allowance by about 6.2% from £92 to £98 per week effective 6 April 2026, which the government says delivers an average cash boost of £725 next year and will benefit roughly four million households; Chancellor Rachel Reeves stated above-inflation top-ups will continue annually through 2029-30 and the Institute for Fiscal Studies calls the move the largest real-terms increase in 46 years. The article lists the new monthly equivalents for single and joint claimants and notes most other universal credit elements will rise in line with inflation rather than receive the top-up. The limited capability for work and work-related activity (LCWRA) health element will be halved for new claimants from £423 to £217 per month from April 2026 and frozen until 2029-30, while existing recipients and those with severe, life-threatening conditions remain on the higher rate; ministers are also reportedly considering removing the health element for under-22s. Government analysis and commentators (Martin Lewis) quantify distributional effects: 2.25 million families receiving the health element would lose about £500 a year by 2029-30, while 3.9 million other families would gain about £265 a year. These changes reallocate support within low-income households, implying a near-term boost to disposable income for many claimants but concentrated losses for LCWRA recipients over the medium term; the package therefore has clear fiscal and political implications and creates execution risk around the under-22s proposal and the detailed eligibility rules that will determine net winners and losers.
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