Universal Credit rise outpaces state pension increase with 6.2% boost in April

This uplift surpasses the 4.8 per cent increase delivered under the state pension triple lock, with ministers applying an additional 2.3 per cent on top of the standard inflation-linked adjustment.

Universal Credit remains the most widely claimed benefit after the state pension, with many recipients relying on it to supplement earnings from employment.

Further changes introduced alongside the increase include the removal of the two-child cap on the Child Element, which is expected to raise payments for larger families.

Updated figures show single claimants have seen their monthly standard allowance rise from £400.14 to £424.90, reflecting the full impact of the increase.

Couples have experienced a larger uplift in cash terms, with their joint monthly payment increasing from £628.10 to £666.97.

These measures form part of a broader set of reforms introduced through the Universal Credit Act 2025, which aims to adjust the balance of payments within the system.

Ministers have committed to increasing the standard allowance above inflation over the next four financial years as part of this approach.

By 2029/30, the baseline payment is projected to be 4.8 per cent higher than it would have been under a model strictly linked to Consumer Prices Index (CPI) inflation.

For households with three or more children, the removal of the two-child cap on the Child Element is expected to deliver further increases in overall support.

However, the reforms also introduce reductions for some groups entering the system.

New claimants qualifying for Limited Capability for Work Related Activity payments will receive a lower rate, with the monthly amount reduced from £432.27 to £217.26.

This revised payment level will remain frozen until 2029/30 for most new recipients.

Protections have been put in place for certain groups, ensuring existing LCWRA claimants continue to receive the higher rate.

New applicants who are terminally ill or have severe, lifelong conditions that prevent them from working are also exempt from the reduction.

Social security and disability minister Sir Stephen Timms said the changes were designed to address longstanding issues within the welfare system.

Sir Stephen said: "The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work."

He added: "Laws coming into force today will change that, reducing projected expenditure on universal credit by almost £1billion."

The reforms also include additional investment in employment support.

Sir Stephen said: "Simultaneously boosting the standard allowance and investing £3.5billion in employment support means we're creating a welfare system that backs people to work and helps them build a better future."

The Government has presented the changes as part of a wider effort to encourage employment while maintaining support for those unable to work.