Upcoming changes to Universal Credit in the following year are set to have a significant impact on millions of claimants.
Universal Credit, administered by the Department for Work and Pensions (DWP), is currently claimed by over eight million individuals in the UK.
Among the modifications are enhancements to the standard allowance, which represents the basic payment received in Universal Credit before any additional adjustments.
Conversely, substantial reductions are anticipated for the health-related component for new Universal Credit applicants.
WHATSAPP GROUP: Stay updated on financial news and exclusive offers by joining our Money WhatsApp group here. Enjoy special promotions, deals, and advertisements from us and our affiliates. If you wish to leave the group, you can do so at any time. For more information, please refer to our Privacy Notice.
NEWSLETTER: Sign up for Mirror’s Money newsletter here to receive top advice and shopping deals directly to your email.
The majority of older legacy benefits are being replaced by Universal Credit, with the transition expected to be completed by the end of March 2026.
Universal Credit is set to replace various benefits including Tax Credits, Income-based Jobseeker’s Allowance, Income Support, Income-related Employment and Support Allowance, and Housing Benefit.
Individuals required to switch to Universal Credit will