Benefits Changes 2026 — Everything That's Changed This Year

Every April, benefit rates and rules are updated, but 2026/27 has brought some particularly significant changes — including a major restructuring of Universal Credit’s health element, the removal of the two-child limit, and above-inflation rises across several benefits. This guide rounds up everything that’s changed for the 2026/27 tax year, in one place.

This page reflects the 2026/27 tax year (from 6 April 2026). We’ll publish a fresh 2027/28 roundup next April rather than editing this one, so it remains an accurate record of this specific year — check our latest guides for anything beyond 2026/27.

Universal Credit: the biggest changes

The two-child limit has been removed. From 6 April 2026, every eligible child now attracts a Universal Credit child element, regardless of birth order — previously, only the first two children born on or after 6 April 2017 could attract a child element, unless a specific exception applied.

The health element (LCWRA) has been restructured into two tiers. This is arguably the most significant single change this year. Under the Universal Credit Act 2025:

• Existing claimants (before 6 April 2026), those meeting the “severe conditions criteria,” and terminally ill claimants keep a protected rate of £429.80 a month, uprated at least in line with inflation through to 2029/30
• Most new claimants found to have LCWRA from 6 April 2026 onwards receive a reduced rate of £217.26 a month, frozen at that level until 2029/30

The standard allowance is rising above inflation over the four years from 2026/27, as part of a deliberate “rebalancing” alongside the health element changes.

Work allowances and the taper rate are unchanged: £710 a month (without housing element) or £427 a month (with housing element), with a 55% taper above that.

Savings rules are unchanged: £6,000 disregarded, £4.35 tariff income per £250 between £6,000 and £16,000, and no entitlement at all above £16,000.

See our full guide on the Universal Credit health element for the details of the LCWRA restructuring.

Attendance Allowance

Rates rose by 3.8% from April 2026:

• Lower rate: £76.70 a week (up from £73.90)
• Higher rate: £114.60 a week (up from £110.40)

Carer’s Allowance

• The weekly rate rose to £86.45 (up from £83.30)
• The earnings limit rose to £204 a week (up from £196), and is now permanently linked to 16 times the National Living Wage — meaning it should rise automatically each April going forward, rather than needing a separate policy decision each time

Child Benefit

• Rates are unchanged from 2025/26: £27.05 a week for the eldest or only child, £17.90 a week for each additional child
• The High Income Child Benefit Charge threshold remains at £60,000-£80,000 (individual income, not household)
• The planned retrospective National Insurance credit scheme (letting parents claim missed credits back to 2013) has been delayed from April 2026 to April 2027

Pension Credit

The Guarantee Credit standard minimum rose by 4.8%, in line with the earnings element of the “triple lock”:

• Single: £238.00 a week (up from £227.10)
• Couple: £363.25 a week (up from £346.60)
• Severe disability addition: £86.05 a week single, £172.10 if both partners qualify (up from £82.90/£165.80)
• Carer addition: £48.15 a week (up from £46.40)
• Savings Credit (only for those reaching State Pension age before 6 April 2016): thresholds and maximum amounts also rose slightly

State Pension

The triple lock delivered a 4.8% increase, in line with average earnings growth:

• Full new State Pension: £241.30 a week (up from £230.25)
• Full basic State Pension: £184.90 a week (up from £176.45)

National Living Wage

The National Living Wage rose to £12.71 an hour from April 2026, which also feeds into several benefit calculations — including the Universal Credit Minimum Income Floor for self-employed claimants and the Carer’s Allowance earnings limit, both of which are now linked to it.

What hasn’t changed (or has been frozen)

Not everything moved with inflation this year:

• The Benefit Cap is frozen at 2025/26 levels for 2026/27, with no CPI uprating
• Local Housing Allowance rates are frozen for a third consecutive year at April 2024 levels, meaning the gap between LHA and actual private rents has likely widened further in many areas
• PIP eligibility rules remain unchanged from previous years — the widely-discussed “4-point rule” proposal was scrapped back in July 2025 and was never brought back; see our guide on the PIP 4-point rule for the full story

The Timms Review

A broader independent review of PIP’s assessment criteria (the “Timms Review”) is due to report in autumn 2026. Any resulting changes to PIP eligibility would need fresh legislation, so no changes are expected to actually take effect before late 2027 at the earliest.

Frequently asked questions

What’s the single biggest change for 2026/27? Most observers would point to the restructuring of the Universal Credit health element (LCWRA) into two tiers — a protected rate for existing and severely affected claimants, and a significantly reduced, frozen rate for most new claimants.

Has the two-child limit really been completely removed? Yes — from 6 April 2026, every eligible child attracts a Universal Credit child element, regardless of how many children are in the household or when they were born.

Are PIP rules changing this year? No significant eligibility changes have taken effect. The previously proposed “4-point rule” was scrapped in July 2025, and the ongoing Timms Review (reporting autumn 2026) won’t produce any actual rule changes until well after this tax year.

Why has the retrospective Child Benefit National Insurance credit scheme been delayed? The government has confirmed a delay from the original April 2026 launch to April 2027, though most people affected won’t lose out — the delay mainly affects when you can apply, not your underlying entitlement.

Did all benefits rise with inflation this year? No — most did, in line with either CPI or the triple lock, but the Benefit Cap and Local Housing Allowance rates were both frozen rather than uprated for 2026/27.

Will the reduced Universal Credit health element rate ever increase? It’s frozen at £217.26 a month until 2029/30 under current legislation, so it won’t rise with inflation during that period, unlike the protected £429.80 rate.

Where can I find the exact rates for a specific benefit? Check the individual guide for that benefit on our site, or the official GOV.UK “Benefit and pension rates” publication, which lists every rate change in full detail.

Will there be a 2027/28 version of this page? Yes — we’ll publish a fresh roundup for the 2027/28 tax year next April, rather than overwriting this one, so this page remains an accurate record of the 2026/27 changes specifically.

Sources

• GOV.UK — Benefit and pension rates 2026 to 2027
• GOV.UK — Universal Credit