Millions of Households to Receive Universal Credit Top-Up: What You Need to Know.

According to The Sun: About four million households receiving Universal Credit will start getting increased payments that exceed the inflation rate from April next year.

According to new legislation that received royal assent this week, the standard payment will rise by £725 by 2030.

Currently, individuals under 25 receive £316.98 a month, while couples receive £497.55. For those over 25, the payment is £400.14 for singles and £628.10 for couples.

Typically, payments are increased in the spring to help households cope with rising living costs, including food, fuel, and utilities.

These changes are generally based on the consumer price index recorded in the previous September.

However, the government emphasizes that a four-year freeze on payments from 2015 to 2019 led to a decrease in the real value of payments.

Thus, from April 2026, the standard payment will rise by more than inflation over the next four years.

Therefore, by 2030, the amount recipients receive will be nearly 5% higher than if it had merely increased with inflation.

The increase will be determined by adding the inflation rate from the previous September plus a fixed increase.

What is the Standard Universal Credit Payment?

Universal Credit is a social security system that merges several old 'successor payments' into one monthly payment.

The standard payment is the basic monthly amount for individuals or families entitled to this support.

• Single, under 25: £316.98
• Single, 25 and over: £400.14
• Couples, both under 25: £497.55
• Couples, one or both 25 and over: £628.10

You may also receive extra payments if you have children, a disability, or need help with housing costs.

Additional percentages will be set at:

• 2.3% for 2026-27
• 3.1% for 2027-28
• 4.0% for 2028-29
• 4.8% for 2029-30

The government plans to help more people return to work and reduce reliance on disability payments.

What Other Changes Are Happening to Universal Credit?

Earlier this summer, Prime Minister Keir Starmer hoped to implement welfare reforms that would ensure stricter controls over payments.

However, the government was forced to abandon the welfare bill in July due to backlash from charities, experts, and MPs.

Proposed changes included reforms to the Universal Credit health element.

More than three million Universal Credit recipients are not required to seek work due to poor health.

A single person over 25 can receive a basic payment level of £400.14 a month.

However, those receiving supplements for disability or long-term illness can receive an additional £422.37—more than double the initial payment.

Ministers attempted to freeze payments for the next four years but decided to raise them in line with inflation instead.

This means that individuals receiving the Universal Credit health element and new claimants with the most serious conditions will have their income protected in real terms.

Those already receiving will get £97 a week until the end of the decade.

However, new claimants from April 2026 will see the health element drop from £97 a week to £50 a week—nearly a 50% reduction.

What Proposed Changes to PIP?

Reforms also included tougher requirements for obtaining the Personal Independence Payment (PIP) for people with disabilities.

The government proposed that individuals must score four points in one task, such as personal hygiene, to qualify for assistance.

Currently, they can obtain help by scoring eight points across various tasks.

However, prior opposition from Labour MPs has led to the cancellation of this proposal.

This means that no changes will be made until further review.

Debbie Abrahams, chair of the Work and Pensions Committee, previously said: “We welcome the concessions the government has made to the UC and PIP bill (now UC Bill); but there remain concerns about these welfare reforms, particularly in terms of reducing financial support that new sick and disabled people will receive.”

“Analysis conducted by the government in March shows that from next April, around 50,000 people who will become unwell or disabled—and those living with them—will fall into poverty by 2030 due to cuts in UC health premium support.”

“We recommend delaying the cut to the UC health premium, particularly given other policies like additional NHS opportunities or employment support, or changes in the labor market to support people in employment, which have yet to be realized.”

Everything You Need to Know About Universal Credit

• What is Universal Credit? Everything you need to know, including how to apply
• Universal Credit Calculator: How much can I get and how to apply?
• Logging into Universal Credit: How to log in to your online account?
• How much can I earn before Universal Credit decreases, and will I get help with work?
• What is a Universal Credit Advance? How to apply and pay it back?
• Do Universal Credit payments increase, and by how much more will I receive?
• How to apply for Universal Credit if you are self-employed?
• How many hours can I work on Universal Credit, and will my payment decrease?
• What is the Universal Credit budget advance, and how much can I get?
• What is the Universal Credit housing element, and how much of my rent does it cover?

Government changes to the Universal Credit system are important steps to support households amid rising living costs. Increases in payments will reflect the real level of need, taking inflation into account, and help many Ukrainians during difficult times. Such changes can contribute to reducing poverty and supporting individuals in vulnerable situations, but it is crucial to ensure that all planned reforms are fair and effective for all sections of society.