The Department for Work and Pensions (DWP) has unveiled a major reform to the Universal Credit (UC) system that kicks off in April 2026.
Aimed at creating a more “pro-work” welfare structure, this update will reshape how millions of people receive benefits—especially those dealing with health-related work challenges.
From payment changes to new support structures, these changes are part of a wider plan to modernize the UK benefits system and simplify transitions from legacy benefits.
Let’s break it down into what’s actually changing and how it might affect you or someone you know.
Table of Contents
Changes
The DWP’s 2026 Universal Credit reforms bring six big changes—each with a different impact depending on whether you’re an existing or new claimant. Here’s what’s on the table:
Allowance
Starting April 2026, all UC claimants—new and existing—will see a boost in their standard monthly allowance. This move is designed to provide a stronger financial foundation and align with inflationary pressures experienced over recent years.
LCWRA
For those already receiving the Limited Capability for Work and Work-Related Activity (LCWRA) component, your weekly £97 payment will be frozen through to the 2029–2030 financial year. That means no inflation-linked increases for the next few years, but you keep your current rate.
However, for new claimants after April 2026, the LCWRA component drops to £50 per week. In addition, claimants under 22 years of age will no longer be eligible for LCWRA at all. This cut is a core part of the DWP’s strategy to re-balance welfare and push toward employability where possible.
Trials
Here’s a more positive twist: the reform includes protection for work trials. If you’re currently receiving LCWRA and want to test the waters by returning to work, you can do so without losing your health top-up.
This safety net is meant to ease anxiety and encourage gradual re-entry into employment without penalty.
To compensate for reduced LCWRA support, the government is introducing a new premium for individuals with severe or lifelong health conditions. This additional payment aims to provide tailored assistance for those with no realistic prospects of working again.
Support
New claimants will also receive enhanced jobcentre engagement. That means more dedicated help from work coaches, support in building skills, and guidance for finding employment.
The generous work allowance—letting you earn a certain amount before deductions—will stay intact, which is great news for those working part-time or just getting back on their feet.
Impact
Let’s look at how the reforms will impact different types of claimants.
| Claimant Type | Standard Allowance | LCWRA Component | Support Offered |
|---|---|---|---|
| Existing Claimants | Increased | £97/week (Frozen) | Work trial protection, no deductions |
| New Claimants | Increased | £50/week (Reduced) | Enhanced coaching, no LCWRA under 22 |
Transition
The move from legacy benefits to Universal Credit has been in motion since 2013, but the final transition phase ends in March 2026. Six legacy benefits—including ESA, Housing Benefit, and Income Support—will be completely phased out.
If you currently receive one of these, you likely received a migration notice in mid-2024. You must comply with this notice to avoid losing your benefits. This is especially crucial for those with health issues or limited digital access.
Protection
To cushion the blow, the DWP is offering transitional protection. This ensures that if your new UC payments are lower than your old benefits, you get a top-up to bridge the gap. However, it’s temporary—and will reduce over time, especially if your income or family situation changes.
Only those going through the managed migration process qualify. If you choose to switch to UC on your own, or miss your migration deadline, you won’t be eligible for this protection.
By March 2026, the UK welfare system will be fully transformed. The message from the DWP is clear: act now to secure your transition, ensure your paperwork is in order, and prepare for a system that’s more focused on getting people back into the workforce—especially those who can, with the right support.
FAQs
When do the Universal Credit changes start?
The new Universal Credit changes begin in April 2026.
Who gets transitional protection?
Only claimants going through managed migration qualify for it.
Will LCWRA payments increase?
No, they are frozen for existing claimants and reduced for new ones.
Can I work on LCWRA without losing benefits?
Yes, you’re protected during approved work trials.
Is the new health premium automatic?
It’s for claimants with severe or lifelong conditions only.
