Following Rachel Reeves’ Budget for 2025, several state benefits are due to rise in 2026. To ensure you don’t miss out on the support you’re entitled to, check which benefits you’re eligible for and find out how to claim them below.
Universal Credit (UC)
From April 2026, Universal Credit (UC) payments are set to see a record increase, benefitting nearly 4 million households.
The chancellor’s changes mean that, for the next 4 years, the standard UC allowance will go up in line with September’s rate of inflation (3.8%), but with an additional top-up cash payment of 2.3%. This makes the total increase for most new and existing claimants 6.2%. For single claimants under 25, you’ll see a rise of 6.8%.
Further changes are planned for April 2028, when all parents and carers on UC will get access to Help to Save – a type of savings account that allows eligible UC claimants to get a bonus of 50p for every £1 they save over 4 years.
What is Universal Credit (UC)?
Universal Credit, or UC for short, is a monthly payment (or bi-monthly for some people in Scotland) from the government to help with your living costs if you’re on a low income, out of work, or unable to work.
Child Element of Universal Credit
Another of Reeves’ changes was the removal of the two-child benefit limit (within Universal Credit). From April 2026, the child element of UC for:
- The first child born prior to 6th April 2017: Will increase from £339 to £351.88 per month.
- The first child born on or after 6th April 2017: Will increase from £292.81 to £303.94 per month.
- Any additional children (no matter when they were born): Will increase from £292.81 to £303.94 per month.
What is the Two-Child Benefit Limit?
The previous two-child benefit limit meant parents with three or more children could not claim Universal Credit (or tax credits) for more than two children if they were born after 6th April 2017.
But from April 2026, parents with more than two children will be able to claim UC (or tax credits) for all of their children.
Carer’s Allowance
A rise in Carer’s Allowance has also been confirmed for April 2026, which will result in a 3.8% increase based on September’s inflation figure.
Here’s how that rise translates into weekly/annual rates:
- Weekly: The rate will go up from £83.30 to £86.47.
- Annual: Carers will receive an additional £164 per year.
How Does Carer’s Allowance Work?
Carer’s Allowance pays a weekly rate to carers who look after someone for at least 35 hours a week (if the person you care for gets certain benefits). You do not have to be related to, or live with, this person and you do not get paid extra if you care for more than one person. If someone else cares for the same person as you, only one of you can claim Carer’s Allowance. It can also affect the other benefits you and the person you care for get, meaning you will have to pay tax on it if your income is over the Personal Allowance.
Personal Independence Payment (PIP)
Standard PIP payments are another state benefit due to rise in line with inflation. There are 2 parts to PIP – a daily living allowance and a mobility allowance. Whether you get one or both parts and how much you get depends on how difficult you find everyday tasks and getting around.
How Does Personal Independence Payment (PIP) Work?
Personal Independence Payment (PIP) helps people with long-term physical or mental health conditions (or disabilities) cover their extra living costs. It is only available for those who have difficulty doing certain everyday tasks, or need help with mobility. You can still receive PIP if you work, have savings, or are getting most other benefits.
- Check if you’re eligible for Personal Independence Payment
- How to claim Personal Independence Payment
Disability Living Allowance (DLA)
Disability Living Allowance (DLA) will also be going up by 3.8% in April 2026. The increases for each care/mobility component are as follows:
- Highest Care Component: Up from £108.55 to approx. £112.65 per week.
- Middle Care Component: Up from £72.65 to approx. £75.45 per week.
- Lowest Care Component: Up from £28.70 to approx. £29.80 per week.
- Higher Mobility Component: Up from £75.75 to approx. £78.65 per week.
- Lower Mobility Component: Up from £28.70 to approx. £29.80 per week.
What is Disability Living Allowance (DLA)?
Disability Living Allowance, or DLA, is a payment for children (aged under 16) who have difficulties walking or need more care or supervision than a child of the same age. This payment helps with the extra costs of looking after a child with a disability or health condition.
Don’t Miss Out On The State Benefits You’re Entitled To
If the cost of living is causing financial stress, there is help available. Make sure you claim the state benefits you’re entitled to, as it could be the vital help you’re missing out on to cover everyday costs. Try our benefits calculator to see which ones you qualify for today. If you’re still struggling to make ends meet, contact Angel Advance to get free*, confidential debt advice over the phone, via email, through WhatsApp, or in a webchat.
If you need debt advice fast, why not try our free online debt advice tool? It takes less than 15 minutes to complete, and you can fill it out at any time – day or night. Simply enter your details and our tool will create a monthly budget for you, give you tailored debt advice, and show you which debt solutions you’re eligible for on screen, instantly.
*Our advice is free, but if you sign up for a debt solution, a fee will apply for some solutions.
