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The Department for Work and Pensions says four million households will receive an annual income boost worth £725. It follows the Royal Assent of a Bill to overhaul the DWP benefits and welfare system on 3 September, 2025.

The DWP promises to hike the Universal Credit standard allowance above inflation for the next four years - worth an estimated £725 by 2029/30 for a single adult aged 25 or over.

It will reduce the health top-up for new claims to £50 per week from April 2026, too, and ensure that all existing recipients of the Universal Credit health element - and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) - will receive the higher Universal Credit health payment after Apri

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