Ally
The Department for Work and Pensions (DWP) has unveiled four significant changes for single Universal Credit (UC) claimants aged 25 and over.
These adjustments, aimed at improving the financial security of millions, include increases in the standard Universal Credit allowance and other key updates.
As of June 18, 2025, the Labour Party government’s new Universal Credit and Personal Independence Payment Bill offers essential adjustments to help claimants manage their financial burdens.
Key Changes Announced by the DWP
- Universal Credit Rate Increases:
Starting in 2026, single claimants aged 25 and over will receive a 2.3% increase in their standard Universal Credit allowance. This increase will be followed by further adjustments in the coming years: 3.1% in 2027 to 2028, 4.0% in 2028 to 2029, and 4.8% in 2029 to 2030, marking the end of the current parliamentary period. These increases are designed to help combat inflation and provide financial relief to households grappling with rising living costs.Table: Universal Credit Rate Increases YearRate Increase (%)2026 to 20272.3%2027 to 20283.1%2028 to 20294.0%2029 to 20304.8% - 13-Week Financial Protection:
For claimants affected by changes to the Personal Independence Payment (PIP) daily living component, the new bill provides 13 weeks of additional financial protection. This covers individuals who lose eligibility for Carers Allowance and the carer’s element of Universal Credit. This measure ensures that claimants who are transitioning can adjust to new circumstances and access tailored employment support. - Tailored Employment Support:
The Universal Credit and Personal Independence Payment Bill offers more than just financial support. Claimants who lose their eligibility for certain allowances will receive bespoke employment services, aimed at helping them reintegrate into the workforce and improve their long-term economic stability. This transition support is one of the most generous provided by the government, lasting more than three times longer than previous transitional covers. - Impact on Disabled Claimants:
James Watson-O’Neill, chief executive of the disability charity Sense, expressed concerns over the changes for disabled claimants. These changes could impact those with significant barriers to work, leaving many disabled individuals and families unsure of how to meet their basic needs without the extra support provided by Universal Credit.
How These Changes Will Affect You
For single claimants aged 25 and over, these changes mean a boost in income over the next few years. The 2.3% increase in 2026 will help claimants better manage inflation, while subsequent rises will provide continued relief through 2030.
The 13-week financial protection ensures that those impacted by the loss of specific benefits, such as Carers Allowance, can maintain financial stability while they adjust.
Additionally, employment support will assist claimants in preparing for re-entry into the workforce, offering critical help during their transition.
What This Means for the Future
These changes reflect the government’s ongoing commitment to financial support for vulnerable groups, especially those who may have difficulty securing stable employment.
The rate increases ensure that Universal Credit claimants can keep up with rising costs, while the additional protections offer much-needed security for those going through significant changes in their benefit eligibility.
The DWP’s new changes provide vital financial relief for single claimants aged 25 and over, offering increased Universal Credit rates and essential support during times of transition.
These measures are part of the Labour Party government’s efforts to ensure that vulnerable households are not left behind as economic conditions change.
FAQs
How much will my Universal Credit increase by in 2026?
Single claimants aged 25 and over will see a 2.3% increase in their Universal Credit allowance in 2026.
What support will be available for claimants losing Carers Allowance?
Claimants who lose Carers Allowance or the carer’s element of Universal Credit will receive 13 weeks of additional financial protection.
What happens if I am disabled and affected by these changes?
The DWP’s new bill includes measures aimed at providing extra financial support and employment services to disabled claimants, though concerns have been raised regarding how these changes might affect some of the most vulnerable individuals.: