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UK benefits to rise from April 2027: at least 3.5%, Universal Credit by up to 4.3%

September 2026 CPI inflation was 3.5%, so inflation-linked benefits are due to rise by at least that much from April 2027. The Universal Credit Standard Allowance could rise by about 4.3%.

Author: Editorial teamPublished: 2 min read

Monety funtowe i kalkulator na stole

Millions of people claiming benefits in the UK can expect a rise from April 2027. The Office for National Statistics (ONS) reported on 21 October 2026 that CPI inflation was 3.5% in September. The government traditionally uses the September figure to set the annual uprating of benefits.

When final rates will be known

Uprating is not automatic. According to Polish Express, over the past 15 years the government has sometimes departed from the practice. The new rates are announced by the chancellor at the autumn budget, which John Healey is due to deliver on 28 October 2026.

The Department for Work and Pensions must review each year whether benefits keep pace with prices. Benefits for disabled people and carers, such as Personal Independence Payment and Carer's Allowance, must rise by at least inflation. For most other working-age benefits, such as Child Benefit, ministers can raise them by inflation, by less, or not at all.

With a 3.5% rise, Child Benefit for the eldest child would go up from £27.05 to about £28 a week. Carer's Allowance would rise from £86.45 to about £89.50.

A family at a kitchen table with household bills
The benefits rise is due to affect household budgets from April 2027.

Universal Credit: an additional increase

Universal Credit has separate rules. The Universal Credit Act 2025 requires the Standard Allowance to rise faster than inflation every year until 2029–2030. By then it is to be 4.8% higher than if it had been uprated by inflation alone. The target is being met gradually: in the current financial year the allowance was 2.3% higher than inflation alone would have produced, and next year it is to be 3.1% higher.

That means inflation of 3.5% plus an extra 0.8% or so, about 4.3% in total. Approximate monthly Standard Allowance rates after such a rise:

  • single people under 25: from £338.58 to £353.14,
  • single people aged 25 and over: from £424.90 to £443.21,
  • couples, both under 25: from £528.34 to £551.10,
  • couples, one or both aged 25 or over: from £666.97 to £695.71.

What this means for you

The rise affects people who receive Universal Credit, Child Benefit, Carer's Allowance or other inflation-linked benefits. The amounts given are estimates, and final rates will be known after the budget on 28 October 2026. Entitlement to benefits depends on individual circumstances, including residence status, so not every person living in the UK can claim them.

Sources

  1. Podwyżka zasiłków. O ile wzrośnie Universal Credit?
  2. Inflation and price indices
  3. Benefits Uprating 2026/27

This article was prepared automatically by AI from the listed sources and published without prior editorial review. Spotted a mistake? Use the “Report an error in this article” button.

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