DWP benefits including Universal Credit, Child Benefit, PIP, Carer’s Allowance, and the State Pension are to increase in April 2026 after Rachel Reeves announced higher payments in her budget speech today.
Anyone who claims DWP benefits should be in line for an increase in the next financial year, as the chancellor laid out plans to help pensioners, disabled people, parents, low earners, carers and unemployed people keep up with rising costs.
Addressing MPs, Ms Reeves said: “The broken welfare system that we inherited wrote off millions of people as too sick to work and we will reform that system so that it is a system that does not count the cost of failure, but one that protects people who cannot work and empowers those who can.
“We have brought back face-to-face assessments for disability benefits. Those are the face-to-face assessments that the shadow chancellor (Sir Mel Stride) got rid of when he was work and pensions secretary and our changes we have made to Universal Credit will get 15,000 people back into work, a figure confirmed today.”
How much will DWP benefits increase by?
This year the standard rises, but some – notably those paid to people over state pension age and Universal Credit – should increase more.
How much will Universal Credit increase by in 2026?
Earlier this year, the government announced new proposals – which became law earlier this month under the Universal Credit Act – that it was changing how it would decide any increase in the universal credit standard allowance.
The new rules mean that – for the next four years at least – universal credit payments should increase by the rate of inflation as before, but with an additional top-up cash payment.
In April 2026, Universal Credit Claimants should see their payments rise by a combined total of more than 6%, reflecting September’s 3.8% inflation rate, plus the standard allowance increase of 2.3%.
For a single person aged 25 or over, the weekly standard allowance will rise from £92 to £98, a £6 or so increase per week.
For a couple where one or both are aged 25 or over, the weekly allowance will rise from £145 to £154, around an £8 increase.
It’s worth noting that that this increase is only for the standard allowance — the basic universal credit payment rate — and the health element of the payment affected by cuts.
As of next April, any claimants of the health element from this date will have that rate frozen and halved until 2029-30.
How much will Child Benefit increase by in 2026?
With the 3.8% uplift, families with one child should receive receive the new amount of around £27.04, up 99p from £26.05 per week each week from April 2026.
Families should also receive £17.90 per week (up from £17.25) for each additional child they have after that.
It’s estimated that around 7 million families claim Child Benefit in the UK, for around 13 million children, although figures change slightly each year.
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How much will PIP increase by in 2026?
Unlike Universal Credit, those in England and Wales who receive PIP will see their payments increased solely in line with inflation. Both the daily living and mobility standard and enhanced rates should rise by 3.8% in line with inflation as of April.
Carer’s allowance
Carer’s allowance — paid to individuals caring for someone at least 35 hours per week who receives certain disability-related benefits — will also increase in line with inflation. The rate should increase from £81.90 to £83.30.
State Pension
Unlike any other benefit, the state pension is guaranteed by the triple lock — which rises in line with whatever is the highest figure out of inflation, the previous summer’s average earnings growth, or a baseline figure of 2.5%.
Next year, the state pension should rise by 4.8% in line with the average earnings growth, boosting payments by around £500 a year.