Millions of benefit claimants across the UK will see a welcome boost to their DWP payments from April 2026.
DWP benefit claimants will be watching the budget this week hoping to see a welcome boost to their payments from April 2026.
Anyone who claims Universal Credit, Child Benefit, Carer's Allowance, and the State Pension should be in line for an increase in the next financial year, as Rachel reeves lays out plans to help pensioners, disabled people, parents, low earners, carers and unemployed people keep up with rising costs.
How much will DWP benefits increase by?
Nothing is certain until the budget itself, but any increase is usually pegged to September's inflation figure.
Last year, that was just 1.7% in September 2024 – the lowest it had been in three years. This year it was 3.8%, so many benefits will be set to that rate.
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 6.2%, 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 increase per week.
- For a couple where one or both are aged 25 or over, the weekly allowance will rise from £145 to £154, a £9 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?
If the uplift is 3.8% as expected, 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. Unlike some other benefits, there is no limit to how many children families can claim for.
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, so the exact figures may change.
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- How much could your state pension increase by next year?
- Martin Lewis' key savings safety update happening on December 1 for all accounts
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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.
