Universal Credit claimants are set to be handed an inflation busting £312 annual increase in 2026 following a law change which will be confirmed again on Wednesday. The DWP benefit is the most common benefit apart from the state pension , claimed by 7.5M people in the UK including by those in work as a top-up to income.

All benefits increase each year in line with inflation, but in 2026 an extra 2.3% uplift on top of inflation is being added to Universal Credit due to a law change this year, the Universal Credit Act 2025, which sets out that the benefit will be increased by more than inflation each year until 2030.

Announced in 2024, the boost, effective from April 2026, is bound to be included in Chancellor Rachel Reeves Autumn Budget, which sets out spending plans for the upcomin

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