The Department for Work and Pensions (DWP) has officially announced six major changes to Universal Credit (UC), set to take effect from April 2026.
These reforms are part of the UK government’s effort to simplify the benefits system and promote a more “pro-work” welfare model.
Millions of claimants are expected to be affected by this final phase of welfare reform as legacy benefits are phased out.
The key changes will impact how payments are structured, particularly for those receiving Limited Capability for Work and Work-Related Activity (LCWRA), and will introduce new policies to support people with severe conditions and promote re-entry into the workforce.
Overview of the 6 Universal Credit Changes
The following table outlines the six confirmed changes to Universal Credit from April 2026:
| Change | Details | Impact |
|---|---|---|
| 1. Increased Standard Allowance | All UC recipients will see a rise in their monthly basic payment. | Boosts income for both new and existing claimants. |
| 2. LCWRA Payment Freeze | Existing LCWRA recipients will continue receiving £97/week, frozen until 2029/30. | Payment level won’t increase with inflation. |
| 3. Reduced LCWRA for New Claimants | New LCWRA claimants will receive £50/week. Those under 22 are excluded. | Lower support for new claimants. |
| 4. Work Trial Protections | Claimants won’t lose LCWRA top-up when trying out a return to work. | Encourages safe transition into work. |
| 5. New Premium for Severe Conditions | Extra payment for individuals with chronic or lifelong illnesses. | Provides targeted financial support. |
| 6. Enhanced Work Allowance & Jobcentre Help | More assistance from work coaches and retention of generous work allowance. | Improves employability and income prospects. |
Impact on Claimants: Old vs. New
Existing Claimants
- Benefit from increased standard allowance.
- Continue receiving the current LCWRA rate of £97/week until 2029–30.
- Can trial work opportunities without affecting health-related benefits.
New Claimants (from April 2026)
- Will get lower LCWRA payments (£50/week).
- Under-22 claimants will no longer qualify for LCWRA.
- Enhanced jobcentre engagement and continued work allowance support.
- Access to the new severe condition premium if eligible.
Managed Migration to Universal Credit
The migration process from legacy benefits like ESA, Housing Benefit, and Income Support will be completed by March 2026. A managed transition strategy has been in place since 2019, focusing on claimants with complex needs.
Those affected have already received transition notices since mid-2024. Failure to respond or comply could result in loss of benefits. Therefore, claimants are urged to act promptly.
Transitional Protection: Safeguarding Claimants
To cushion the financial blow for those transitioning to Universal Credit, transitional protection will be offered. This ensures that no eligible individual loses out immediately after switching. However, this safeguard is:
- Only available through managed migration.
- Subject to gradual reductions based on changes in income or family circumstances.
What’s Ending by 2026?
By March 2026, six legacy benefits will be fully closed. These include:
- Income Support
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Working Tax Credit
- Child Tax Credit
- Housing Benefit
This move finalizes the government’s long-term vision for a unified and modernized Universal Credit system.
The 2026 Universal Credit reforms mark a significant milestone in the UK’s social security transformation.
With changes to LCWRA payments, enhanced employment support, and the closure of legacy benefits, the DWP aims to strike a balance between support and work incentives.
While existing claimants are largely protected, new claimants must prepare for a leaner structure. It’s essential for all recipients to stay informed, respond to notices, and take proactive steps to secure their entitlements.
FAQs
Will existing LCWRA claimants lose their current payments in 2026?
No, existing claimants will continue to receive £97/week, though this amount will be frozen until 2029/30.
Who qualifies for the new severe condition premium?
Claimants with chronic or lifelong medical conditions may be eligible for this additional payment from April 2026.
What happens if I miss the managed migration deadline?
If you miss the migration deadline, you may lose access to transitional protection, which could result in reduced benefits.