Universal Credit recipients are set to receive an additional £312 annually thanks to a recent law change introduced by the Department for Work and Pensions (DWP). The Universal Credit Act 2025, now enacted as an Act of Parliament, brings significant reforms aimed at enhancing financial support for claimants.
One of the key changes is the permanent increase of the Universal Credit standard allowance, rising above inflation levels. For a single person aged 25 or over, this means their payment will reach £725 by the 2029/30 financial year. Starting in April 2026, claimants will see a 6.2% uplift, equating to an extra £6 per week or £312 annually.
The Act also improves support for health-related claimants. Those currently receiving the Universal Credit health element, as well as new claimants with a prognosis of 12 months or less to live or who meet the Severe Conditions Criteria, will see their payments increase, combining the standard allowance with the health element indexed at least in line with inflation annually through to 2029/30.
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The DWP emphasized that these changes aim to provide dignity and security, ensuring the welfare system continues to support vulnerable individuals effectively. A comprehensive review process is planned for the summer, with a commitment to co-production involving a wide range of perspectives to shape future reforms.
Moreover, the Act includes a substantial £3.8 billion investment over the Parliament to enhance employment support tailored to sick and disabled individuals. This funding will accelerate initiatives offering personalized health, skills, and employment assistance, building on successful programs like Connect to Work, which provides one-on-one support when claimants feel ready to enter the workforce.
Despite these improvements, some concerns remain. Thomas Lawson, CEO of the charity Turn2us, criticized aspects of the reforms, noting that MPs voted to cut support by over £200 monthly for those unable to work. He warned that halving the health element for claimants who become sick from April 2026 could worsen hardship, increasing the number of people struggling to afford essentials. Lawson called for a comprehensive review of the system, highlighting the need for the government to listen closely to disabled individuals and advocacy groups to build a fairer welfare system.