Benefit News

• Most benefits increased by 3.8% from April 2026 
• State Pension increased by 4.8%

Applies automatically.

2. Major Universal Credit reforms

Significant structural changes came into force 6 April 2026:

Key changes

• Two‑child limit removed

  • Families can now claim for all children 

• Standard allowance increased above inflation

  • Around £21–£38 more per month for most claimants 

Health element has been reduced for new claims

• a new rate of £217.26

• and a ‘protected LCWRA amount’ of £429.80
• There are now two different rates of the LCWRA Element
• The new lower rate is for anyone who becomes entitled to the LCWRA Element in their UC award from an Assessment Period that begins on or after 6th April 2026, unless they meet the criteria for the 'protected' LCWRA amount.

Overall impact:

• More money in the basic payment
• Less support for some new disabled claimants on UC and ESA

3. Disability benefit changes and reforms

Recent updates affecting PIP, ESA, and UC health elements:

• “Right to try” work introduced (April 2026)

  • Claimants can try work or volunteering without automatic reassessment.
  • Claimants still need to report any work they are trying, and the DWP can refer for immediate reassessment, if the nature of the work undertaken might indicate that a change in functional ability has occurred.

• Longer PIP awards

  • Reviews moving to 4–6 years (sometimes up to 10 years)

• Concerns raised

  • Charities warn some reforms may reduce financial support for new claimants

4. End of legacy benefits

• Most legacy benefits ended by March 2026
• Final migration to Universal Credit continues into mid‑2026

 This means:

• Nearly all working‑age claimants are now on Universal Credit

5. Cost of living support changes

• No national cost‑of‑living payments in 2026
• Support has shifted to:
  • Local council schemes (e.g. crisis funds)
  • Household Support Fund replaced by Crisis and Resilience Fund
  • Energy bill support (£150 discounts etc.)

Important: support now varies by postcode and may require applying.

6. Wider context (cost of living pressure)

• Inflation rose to 3.3% in March 2026 
• Around 63% of households are cutting essentials
• About 24 million people claim benefits (1 in 3 people)