Millions claiming Universal Credit will have to wait until June to receive increased payments despite rates rising in April due to arrears payment system
Millions of Universal Credit claimants face a lengthy wait to see increased payments in their bank accounts – despite rates rising in April.
The Universal Credit standard allowance – the basic amount recipients are entitled to before any deductions or additional elements are factored in – will increase above inflation from April 13.
For a single claimant aged over 25, their monthly standard allowance will increase from £400.14 to £424.90. However, because Universal Credit is paid in arrears, claimants won’t see the pay rise reflected until June.
The enhanced rates will only apply to Universal Credit assessment periods that began on or after April 13. Universal Credit payments are issued a week after the final date of each assessment period – meaning the new rates won’t come into effect until June payments.
Your assessment period determines how much Universal Credit you receive, calculated on earnings or deductions during this timeframe. Nearly eight million people across the UK claim Universal Credit, reports the Mirror.
Whether you qualify for Universal Credit depends on your individual circumstances, including your age, living arrangements, relationship status, income, savings, and in some cases, your physical and mental wellbeing.
For those in employment, a taper rate reduces your maximum Universal Credit payment as your earnings grow. The taper rate stands at 55 percent, meaning 55p is deducted from your maximum Universal Credit payment for every £1 you earn.
Some individuals are entitled to a “work allowance”, which is a predetermined amount you can earn before your Universal Credit is reduced. If you also receive assistance with housing costs, the “work allowance” is £411 per month, and if you don’t, it’s £684 per month.
Universal Credit payment rates for 2026/27 are as follows:
Single
- Under 25: £338.58 a month (from £316.98)
- 25 or over: £424.90 a month (from £400.14)
Couples
- Joint claimants both under 25: £528.34 a month (from £497.55)
- Joint claimants, one or both 25 or over: £666.97 a month (from £628.10)
Child amounts
- First child (born prior to 6 April 2017): £351.88 a month (from £339)
- First child (born on or after 6 April 2017 / second child and subsequent child (where an exception or transitional provision applies): £303.94 a month (from £292.81)
Limited Capability for Work
- Limited Capability for Work amount: £158.76 a month (no change)
- Limited Capability for Work and Work-Related Activity amount (new claimants): £217.26 a month (from £423.27)
- Limited Capability for Work and Work-Related Activity amount (pre-2026 claimant, severe conditions criteria claimant or claimant who is terminally ill): £429.80 a month (from £423.27)
Carer amount
Work allowances
- Higher work allowance (no housing amount) one or more dependent children or limited capability for work: £710 a month (from £684)
- Lower work allowance one or more dependent children or limited capability for work: £427 a month (from £411)
The complete list of additional elements and reductions or deductions for Universal Credit payments can be found on GOV.UK.
