From April 2026, several benefits, pensions and wage rates have changed. We’ve explained what this means for you in this article.
What’s changed from April 2026?
Benefit increases
The following benefits have increased by 3.8%:
- Child Benefit
- Personal Independence Payments (PIP)
- Attendance Allowance
- Carers’ Allowance
Universal Credit increases
The Universal Credit standard allowance has increased from:
- £316.98 to £338.58 per month for single people aged under 25
- £400.14 to £424.90 per month for single people aged 25 and over
- £497.55 to £528.34 per month for joint claimants both aged under 25
- £628.10 to £666.97 per month for joint claimants both aged 25 and over
Pension increases
Both the new State Pension and the basic State Pension have increased by 4.8%.
Wage increases
The National Living Wage has increased by 4.1%, from £12.21 to £12.71 per hour. The National Minimum Wage has:
- increased by 8.5% for 18 to 20-year-olds, from £10.00 to £10.85 per hour.
- increased by 6% for 16 to 17-year-olds and apprentices, from £7.55 to £8.00 per hour.
Limited Capability for Work-Related Activity (LCWRA) update
There are now two rates for the LCWRA element:
- a lower rate of £50.00 per week, or £217.26 per month, if you became eligible for the LCWRA element on or after 6 April 2026
- a higher rate of £99.18 per week, or £429.80 per month, if you have a severe, lifelong health condition or disability, or are nearing the end of life and were eligible for the LCWRA element before 6 April 2026.
LCWRA is extra support through Universal Credit for people whose health condition or disability means they’re not able to work.
Learn more about LCWRA rate changes here
Two-child limit update
The two-child limit will be removed, so if you have three or more children, you’ll get an extra child element payment for each additional child. This change could mean you’re affected by the benefit cap.
The benefit cap can affect how much Universal Credit or Housing Benefit you get. The cap doesn't apply if you, your partner, or dependent children get certain benefits, such as Disability Living Allowance, Personal Independence Payment (PIP), or if you’re working.
From April 2026, the benefit cap is £423.46 per week for couples and £283.71 for single adults. These rates apply to areas outside of London.
Learn more about the two-child limit update here
How do these changes affect me?
These changes happen automatically, so you don’t need to do anything. Our Money Advice team can help you with a benefit check to make sure you’re getting all the financial support you’re entitled to.
If you have any questions or concerns about these benefits changes, we’re here to help.
Get in touch with the team by email at moneyadvicereferrals@midlandheart.org.uk or call us on 0345 60 20 540 for friendly and confidential chat.
