Benefit Changes & How They Affect You

You might have seen the benefit changes that came into place from April 2026 – our guide highlights these changes and what they mean for you.

What Are The Changes To Benefits, Pensions & Wages?

From April this year, the following changes apply to certain benefits, pensions and wages.

Benefit – increases

These benefits increased by 3.8%:

• Child Benefit
• Attendance Allowance
• Carers’ Allowance
• Personal Independence Payments (PIP)

Universal Credit – increases

The Universal Credit standard rate has increased for everyone:

• Single people under 25 will now receive £338.58 per month
• Single people over 25 will now receive £424.90 per month
• Joint claimants under 25 will now receive £528.34 per month
• Joint claimants over 25 will now receive £666.97 per month

Limited Capability for Work-Related Activity (LCWRA)

There are now 2 rates for the LCWRA element:

• £50 per week or £217.26 per month if you became eligible on or after 6 April 2026
• £99.17 per week or £429.80 per month if you have a severe and lifelong health condition or disability or nearing end of life and became eligible for the LCWRA element before 6 April 2026

The LCWRA element provides extra support through Universal Credit for individuals with health conditions or disabilities that prevents them from working.

Pension – increases

Both the new State Pension and the basic State Pension increased by 4.8%.

Wage – increases

The National Living Wage increased by 4.1% from April 2026, from £12.21 to £12.71 per hour.

The National Minimum Wage increased also:

• To £10.85 per hour for 18–20-year-olds
• To £8 per hour for 16–17-year-olds

Two-child Limit

The two-child limit has been scrapped. This means that if you have 3 or more children, you’ll get an extra payment for each additional child.

It’s worth noting that this might mean you’re affected by the benefit cap.

What Is The Benefit Cap?

The benefit cap determines how much Universal Credit or Housing Benefit you could get. However, it doesn’t apply to you if you or your partner or your dependent children receive certain benefits or if you’re working.

From April 2026, the benefit cap is £423.46 per week for couples or £283.71 per week for single adults living outside of London.

How Do The Benefit Changes Affect You?

The changes to benefits, pensions and wages will happen automatically and you do not need to do anything to get the extra payments. 

Nehemiah Is Here To Help & Support

We put our tenants at the heart of all we do – by providing comfortable, safe homes within supportive communities.

We provide Cost of Living Help and Money Advice to tenants, and our team are happy to carry out a benefits check with you to ensure you’re receiving all the financial support that you should be. If you have any questions about the recent benefit changes, just get in touch with us.

If you’d like to speak to us about your benefits or any financial matter, you can contact your Housing Officer or call us on 0121 358 0966 or email contact@nehemiah.co.uk and we will do all we can to help.