Benefit Changes 2026

Each April there are changes to the benefits system but this year there are more than usual.  We provide a helpful summary below of some of the main changes coming into place.

UNIVERSAL CREDIT

·         The two-child cap in Universal Credit has been removed enabling families with three or more children to claim the child element for all qualifying children.

·         The amount paid for the Limited Capability for Work Related Activity group (LCWRA) is changing.  Existing claimants will continue to receive a higher rate of LCWRA payment (£428.80pm) whilst new claimants will typically receive a lower rate of LCWRA payment (£217.26pm).  Some new claimants will be eligible for the higher rate of LCWRA payment if they meet certain health criteria.

·         The new LCWRA element will be frozen at £217.26pm until the 2029-2030 tax year.

·         The standard allowance of Universal Credit will increase above inflation each tax year until the 2029-2030 tax year.

STATUTORY SICK PAY (SSP)

·         SSP will be available to all eligible employees regardless of their earnings.

·         It will be payable from the first full day of sickness absence.

·         SSP will be paid at 80% of an employee’s average weekly earnings or the weekly flat rate of £123.25, whichever is lower.

STATE PENSION

·         The New and Basic State Pension will increase by 4.8% due to the triple lock.

NATIONAL MINIMUM WAGE

·         The new Minimum Wage is:

£12.71 per hour for people aged 21 or over

£10.85 per hour for those aged 18–20

£8.00 per hour for under 18s and apprentices

OTHER BENEFITS

Most other benefits including Child Benefit, Personal Independence Payment (PIP), Attendance Allowance (AA), Disability Living Allowance (DLA), Employment and Support Allowance (ESA) and Job Seekers Allowance (JSA) will increase by 3.8% in April.

If you have any questions about these benefit changes, need assistance with applying for benefits or are struggling financially, please contact us and we can provide help you and/or signpost you to other sources of support.

PWCAC is OPEN for face-to-face advice (appointments and drop-ins) Monday to Friday, 9:30 – 1:30. If you need advice about welfare benefits, housing and homelessness, money guidance, relationship breakdown, consumer issues or anything else, get in touch: info@pwadvice.org | 01892 838619    94 Commercial Road, Paddock Wood, TN12 6DP