Universal Credit changes: what you need to know

Money Advice Universal Credit Our Tenants Benefits 10/10/2025

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From April 2026, the government is making changes to Universal Credit to encourage more people who can, to move into work. We know that any change to your benefits can be worrying, so we’re making sure you have all the information you need.

Why is Universal Credit entitlement changing?

In July 2025, the Universal Credit Bill was passed, which introduced changes to the Limited Capability to Work Related Activity (LCWRA) Element of Universal Credit from April 2026.  

What’s changing?

From April 2026:

  • There will be an increase in the Standard Allowance rate, from £91 per week in 2024/2025 to £98 per week in 2026/2027.
  • There will be a reduction in the LCWRA Element for those entitled to it after 6 April 2026.
  • The Limited Capability for Work (LCW) Element will be frozen, except for:
  1. existing claimants,
  2. people who meet the severe conditions criteria, and
  3. terminally ill patients.

There will also be two different rates of the LCWRA Element from April 2026:

  • A new rate of £217.26.
  • A ‘protected LCWRA amount’ of £423.27, plus the increase for inflation.

Need to talk to us?

We understand this might seem complicated, and that change can be scary. Our dedicated Money Advice team can offer advice and support to help you understand what this change to Universal Credit means for you.

If you're worried about how these changes might affect you or your family, get in touch with us by calling our Hub team on 0345 520 60 40 or fill out this form to contact our Money Advice experts.