Millions Set For Secret Universal Credit Pay Rise – But There’s A Catch

• Four million households to get pay rise every year until 2030
• Standard allowance to go up by £725 by end of the decade
• Pay rises above inflation – but tougher benefit rules loom
• New PIP test could make it harder to qualify for vital support

A hush-hush benefit boost could see millions of households quietly pocketing more cash – but not without a sting in the tail.

In a move that’s been buried in the small print of the new Universal Credit and Personal Independence Payment Bill, the Department for Work and Pensions (DWP) has confirmed annual above-inflation increases to the Universal Credit standard allowance starting next April.

Almost four million households will see their payments go up year after year, with single adults over 25 due to receive an extra £725 annually by 2029/30. That’s nearly 5% more than they’d have received if rises only matched inflation.

Levi Winchester reported in the Mirror that the increases will be staggered as follows:

• 2.3% in 2026-27
• 3.1% in 2027-28
• 4.0% in 2028-29
• 4.8% in 2029-30

The standard allowance is currently £400.14 a month for a single adult over 25, or £628.10 for a couple the same age. Under the changes, claimants will see a real-term uplift that could provide much-needed relief amid the cost-of-living crisis.

But while ministers are quietly upping payments, they're also tightening rules. From 2026, new criteria for the daily living component of Personal Independence Payment (PIP) will make it harder to qualify – with claimants needing to show greater difficulty in everyday tasks like eating and getting dressed.

There’s also a sting for carers: if a claimant loses access to PIP, they could also lose the carer’s element of Universal Credit and Carer’s Allowance. A 13-week transition period will offer limited protection.

Most PIP assessments will also return to being face-to-face, a move likely to spark fury from disability campaigners who say phone and video appointments were a lifeline.

Tom Church, Co-Founder of LatestDeals.co.uk the discount code platform said, "It’s welcome news that Universal Credit is rising, but many will be worried that stricter PIP rules could undo the gains. Benefits are a lifeline, and people need clarity – not confusion – on what support they can actually rely on."