DWP Overhauls Benefits, Provides £760 Boost for Universal Credit Recipients

Jordan Hartwell

Published: February 10, 2026 5:56 AM ET

The Department for Work and Pensions (DWP) is implementing significant reforms to Universal Credit, leading to increased benefits for millions of households. These changes are aimed at encouraging more recipients to seek employment while providing financial support.

DWP Overhauls Benefits

DWP’s recent legislative update, introduced in Parliament, modifies the existing welfare system. The government has acknowledged that previous structures incentivized remaining on health-related benefits rather than pursuing work.

Universal Credit Allowance Increase

The standard Universal Credit allowance will increase above inflation.
A single person aged 25 or over will see an increase of approximately £295 this year.
This amount could reach up to £760 by the end of the decade.

Work and Pensions Secretary Pat McFadden emphasized the government’s commitment to improve the welfare system. He stated that the new reforms are designed to help those who are working or actively seeking work retain more earnings.

Changes to Health Payments

Alongside the allowance increase, the health element of Universal Credit will also undergo revisions. Starting in April, new claimants determined to have limited capability for work will receive £217.26 monthly, down from the current rate of £429.80. However, those with severe lifelong conditions and existing claimants will maintain their higher benefits.

Investment in Employment Support

To support these reforms, the government plans to invest £3.5 billion in employment assistance by the end of the decade. This includes hiring over 1,000 Pathways to Work advisers stationed in Jobcentres across England, Wales, and Scotland.

Positive Impact of Support Programs

These advisers provide voluntary guidance to individuals on health-related benefits. Officials expect that around 65,000 people will benefit from this support within the financial year.

Success stories, like Hayden’s, highlight the reforms’ positive outcomes.
Hayden now trains to be a personal trainer after receiving guidance from his adviser, demonstrating the program’s potential to transform lives.

Projected Savings and Goals

The combination of increasing the basic payments while reducing the health element for new applicants is anticipated to save taxpayers approximately £950 million by 2030/31. The DWP’s emphasis remains on providing further assistance and increasing funds for those either already employed or actively job hunting.