Payment will increase from April 2026. The rise will be based on the September 2025 inflation figure of 3.1%, a move intended to ensure payments keep pace with the cost of living.
Millions of households across the United Kingdom will receive increased benefit payments from next April, the government has confirmed. Following the release of official inflation data, the Department for Work and Pensions (DWP) announced the annual uprating for social security payments, fulfilling its legal duty to review the rates each year.
The increase is tied to the Consumer Prices Index (CPI) rate of inflation for September 2025, which the Office for National Statistics (ONS) reported today as 3.1%. This figure will be used as the benchmark for raising a wide range of benefits, including Universal Credit, disability benefits, and the State Pension, with the new rates taking effect from the first full week of the new financial year in April 2026.
September 2025 Benefit Increase
| Key Fact | Detail / Statistic |
| Rate of Increase | 3.1% |
| Effective Date | From April 2026 |
| Who is Affected? | Claimants of Universal Credit, PIP, State Pension, and other benefits. Gov.uk |
| Basis for Uprating | Annual review based on the September Consumer Prices Index (CPI). |
How the Benefit Uprating is Calculated
By law, the Secretary of State for Work and Pensions must review the value of benefits and state pensions annually. For most working-age benefits, the standard practice is to use the September CPI inflation figure to determine the increase for the following April. This ensures that the purchasing power of benefits is protected against rising prices.
The process involves the Secretary of State laying an uprating order before Parliament later in the year, which formalises the new rates. While the government has the discretion to choose a different figure, deviating from the September CPI is rare and typically occurs only under exceptional economic circumstances.
“This government is committed to protecting the most vulnerable,” said a DWP spokesperson in a statement. “Using the September inflation figure ensures that payments reflect the economic reality faced by families, providing crucial financial support that keeps pace with the cost of living.”
Full List of Payments Affected by the Increase
The 3.1% increase will apply to dozens of benefit payments and allowances. While a complete list will be published by the DWP later this year, the uprating is confirmed to cover the following key areas.
Universal Credit
All elements of Universal Credit are set to rise by 3.1%. This includes the standard allowance for single people and couples, as well as additional amounts for children, limited capability for work, and housing costs. For example, the standard monthly allowance for a single person aged 25 or over would rise from its current rate to reflect the increase.
Disability and Carer Benefits
Disability-related benefits are also included in the uprating. This means that claimants of the following will see a 3.1% rise in their payments:
- Personal Independence Payment (PIP): Both the daily living and mobility components.
- Attendance Allowance: Paid to individuals over State Pension age with care needs.
- Disability Living Allowance (DLA): For both adults and children.
- Carer’s Allowance: An income-replacement benefit for those caring for someone with substantial needs.
State Pension and the Triple Lock
The State Pension is protected by the “triple lock” mechanism. This guarantees that it will rise by the highest of three measures: September’s CPI inflation (3.1%), average wage growth, or 2.5%. With wage growth figures for the relevant period standing at 2.8%, the September CPI figure of 3.1% will be the determining factor for the 2026-27 financial year. Both the Basic and New State Pension will therefore increase by this amount.
Analysis and Reaction
While the confirmation of the increase provides certainty for millions, some policy experts and anti-poverty campaigners have raised concerns about the time lag. Dr. Ben Harrison, an economist at the Institute for Fiscal Studies (IFS), noted the delay between measurement and implementation.
“The system means that a rise based on last September’s inflation won’t reach people’s bank accounts until next April,” Dr. Harrison explained. “If inflation deviates significantly during that seven-month period, the value of the support can be eroded before it is even received. This is a long-standing feature of the system, but it becomes particularly acute during periods of economic volatility.”
Charities have echoed this sentiment. A spokesperson for the Joseph Rowntree Foundation (JRF) stated, “Any increase is welcome, but we must recognise that benefit levels remain historically low. This uprating will prevent things from getting worse, but a wider conversation is needed about the adequacy of our social safety net to truly cover the essential costs families face.”
The confirmed 3.1% increase will now be reviewed by the Social Security Advisory Committee before the final uprating order is presented to Parliament for approval, which is expected to happen before the end of the year. Claimants will automatically receive the updated payment rates and do not need to contact the DWP.
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FAQs
1. When will the new benefit rates take effect?
The increased rates will apply from the start of the new financial year, which is the first Monday in April 2026. The exact date you receive the new amount will depend on your individual payment cycle.
2. How is the increase percentage decided?
The increase is based on the Consumer Prices Index (CPI) rate of inflation from the previous September. For the 2026/27 financial year, this is the 3.1% CPI figure from September 2025.
3. Will my State Pension also increase by this amount?
Yes. The State Pension increases each year by the highest of September’s CPI inflation, average wage growth, or 2.5% (the “triple lock”). As CPI at 3.1% is the highest of these three measures this year, the State Pension will rise by 3.1%.
4. Where can I find the exact new payment rates?
The DWP will publish a full list of the new benefit and pension rates for 2026-27 later this year after the uprating order is approved by Parliament. These will be available on the Gov.uk website.
