Millions on Universal Credit to Get £312 Extra Each Year Millions of people receiving Universal Credit will get an extra £312 every year after the government changed its welfare rules. This update follows the Universal Credit Act 2025 becoming official law. The new law confirms a permanent increase for claimants and changes how the system supports people with health conditions. This change represents one of the biggest reforms the Department for Work and Pensions has made in recent years. With living costs continuing to rise and low-income families facing financial pressure, the extra money aims to provide more reliable long-term support. The government hopes this will help households cope better with ongoing economic difficulties and high inflation rates. The permanent uplift means claimants can now plan their finances with more certainty.
Breaking Down the 2025 Universal Credit £312 Boost
The new law creates a permanent increase in the basic Universal Credit payment that people get before any extra support is added. From April 2026 the standard payment for a single adult aged 25 or over will go up by 6.2%. This means an extra £6 each week or £312 over the full year. This increase is different from past temporary help because it is now part of the law. It is not a short-term fix but a lasting change to how benefits work. The government has said the standard payment will keep rising each year until it hits £725 per month by 2029/30. This gives people a better idea of what future increases will look like.The Act guarantees that people who get the Universal Credit health element will keep seeing their payments increase each year to match inflation from 2026/27 through 2029/30. This covers people with terminal illnesses who have 12 months or less to live and those who qualify under the Severe Conditions Criteria. These updates are designed to make the system easier to understand and remove uncertainty while making sure that claimants with serious health conditions get reliable support.
Eligibility Explained: Which Claimants Get the £312 Payment?
The increase affects the entire Universal Credit system and helps millions of people throughout the UK. Single adults who are 25 or older will receive the largest increase but younger people and couples will also get higher payments. Those who currently get the health top-up through Universal Credit will receive the increase as part of their regular payment. It is worth noting that although most people benefit from these changes some campaigners worry about cuts to the health element for new claimants starting in April 2026. They say that some people might actually be worse off even with the higher standard allowance.
Full Payment Snapshot: How the New £312 Support Is Structured
The table below offers a clear and easy-to-understand breakdown showing how the new £312 annual uplift will be distributed throughout the year.
| Category | Current Status | April 2026 Change | Annual Impact |
|---|---|---|---|
| Standard Allowance (Single 25+) | Yearly uprating | +£6 per week | +£312 per year |
| Health Element + Standard Allowance | Combined and uprated yearly | Inflation-linked rises | Varies |
| Target for 2029/30 | N/A | £725 monthly | Further increases |
DWP’s Official Stand on the 2025 Universal Credit Shake-Up
The Department for Work and Pensions states that this reform aims to provide greater dignity and financial security for Universal Credit recipients. The department believes the welfare system should focus on stability instead of temporary solutions, particularly for those with long-term illnesses or disabilities. The government has allocated £3.8 billion to support new health skills and job programmes to improve employment opportunities. These investments should help more people enter the workforce when they are ready through personalized support from programmes like Connect to Work and Pathways to Work guarantees.Charities and disability organizations have raised concerns about the proposed changes. Thomas Lawson who leads Turn2us has warned that cutting the health element in half for new claimants starting in April 2026 could push more people into financial difficulty. He believes the government needs to pay attention to what disabled people are saying & reconsider some parts of the new law to prevent vulnerable individuals from struggling to afford food or housing. The continuing discussion shows how difficult it is to balance better welfare support with controlling government spending.
