Universal Credit, PIP, State Pensions and more have new rates and dates confirmed for 2026

Life will be much better for millions of Britons later this year, it has been revealed. Department for Work and Pensions (DWP) Share how much benefits and pensions will increase.

About 24 million people are unemployed or out of work A combination of some benefits According to the latest figures, they make up more than a third of the population.

In April 2026, most benefits will increase by 3.8%, in line with September’s inflation data.

at the same time, state pension – payments to nearly 13 million people – will increase by 4.8%. This is in line with the government’s triple lock guarantee, matching annual earnings growth.

In presenting the new rates to parliament, Work and Pensions Secretary Pat McFadden said: “I have completed the statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply for the tax year 2026 to 2027, with the majority of increases taking effect from 6 April 2026.”

Here’s everything you need to know:

How much have benefits increased?

universal credit

By April 2026, all Universal Credit claimants will receive an income increase above inflation of around 6.2% on their standard allowance. Here’s how the monthly payment rates will change:

Limited work capacity and work-related activity elements (LCWRA)

At the same time, the additional monthly payment rate for the health-related part of Universal Credit will be cut by around half for new applicants. The only exceptions are those who meet the criteria for severe conditions or are terminally ill. Rates for existing claimants will also be effectively frozen until 2029, which will

picture within picture

Personal Independence Payment (PIP) is divided into two possible tranches, each paid at a two-month rate:

housing benefit

For most people, housing benefit has been replaced by the housing component of Universal Credit, but 1.8 million people still receive it.

For social rent tenants, the amount of both available to them is roughly in line with the cost of their housing.

For private renters, the maximum amount for both benefits is set by the Local Housing Allowance (LHA), which has been frozen again by the government following a temporary reset in 2024. criticize the decision.

Private renters can find their LHA rates using the following methods: Valuation Office Tools.

attendance allowance

Attendance allowance is paid at one of two weekly rates:

pension credit

Pension credits can be claimed as an individual or as a couple. Here are the weekly rates:

carer’s allowance

Carer’s Allowance will increase from £83.30 to £86.45 per week (up £3.15).

Employment and support allowance

Employment and Support Allowance (ESA) is one of the legacy benefits being implemented Migration to Universal Credit. People cannot make new claims and must move to Universal Credit after being notified by the DWP. However, 1.3 million people still received it.

ESA claimants can be divided into two categories:

Disability Living Allowance

Disability Living Allowance has also been replaced for most people, with one major exception: it remains the main disability benefit for children (under 16).

Similar to PIP, it is paid in two parts. However, one is paid at one of the three-week rates and the other is paid at two weekly rates:

Benefit Caps: What You Need to Know

The benefit cap is frozen again for 2026-2027, marking the fourth year that the benefit cap has not increased with inflation.

This cap sets a limit on the amount of maintenance a claimant can receive from the DWP, even if they are entitled to more (with the exception of certain benefits).

Benefit cap levels vary based on location, whether the claimant is single and living with children:

Greater London

Rest of UK

The cap includes benefits such as Universal Credit, Housing Benefit, Child Benefit and more. However, it ignores other income such as PIP, attendance allowance and carer’s allowance.

This is different from the cap (or limit) on second-child benefits that the government has announced will be scrapped in the autumn budget. The policy, which prevents parents from claiming the children’s component of Universal Credit for any child after their second child, will end in April 2026.

How much will the state pension increase?

The government has confirmed that the state pension will increase by 4.8% based on annual earnings growth from next April. The amounts of the new state pension (for those who reached pension age on or after 6 April 2016) and the old state pension (for all other pensioners) differ:

After one year, the old state pension will be worth £9,614.80 and the new state pension will be worth £12,547.60.

This is just over £22 above the personal threshold for income tax, raising concerns among many that when the state pension inevitably exceeds this amount in 2027, its value will begin to be eroded. This threshold was also frozen in the Autumn Budget Until April 2031, this means the state pension will only continue to grow further.

However, speaking to currency expert Martin Lewis after the fiscal event, Chancellor of the Exchequer Rachel Reeves promises Anyone who receives only a state pension does not have to pay tax on it.