DWP benefits increase 2026 with 3.8 per cent rise from April

The House of Commons approved the measures on Tuesday, alongside a separate motion confirming a 4.8% rise in the state pension under the triple lock system.

The Department for Work and Pensions (DWP) will raise a wide range of working-age benefits and tax credits by 3.8% from April. The increase reflects September’s inflation figure and will apply for the 2026/27 tax year.

3.8% increase to inflation-linked benefits

Benefits set to rise include:

• Universal Credit
• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Carer’s Allowance
• Employment and Support Allowance (ESA)
• Income Support
• Housing Benefit
• Tax Credits

In addition to the inflation-linked uplift, Universal Credit standard allowances will receive an extra 2.3% increase.

State pension to rise by 4.8%

MPs also approved a pensions order that will increase state pensions by 4.8% from April, in line with the Average Weekly Earnings (AWE) index for May to July 2025.

This means:

• The new state pension will rise by £11.05 per week, increasing from £230.25 to £241.30.
• The basic state pension will increase by £8.45 per week, from £176.45 to £184.90.

The rise maintains the Government’s triple lock commitment, which ensures pensions increase each year by the highest of inflation, wage growth, or 2.5%.

Work and Pensions Minister Stephen Timms said the approved motions commit the Government to an additional £9 billion in spending in 2026/27.

He said the breakdown includes:

• £6 billion for state pensions and pension benefits
• £2 billion for disability and carers benefits
• £1 billion for other working-age benefits

Mr Timms said the changes will mainly come into effect from April 6 and apply throughout the 2026/27 tax year.

#DWP #UniversalCredit changes will cut #sick & #disabled claimants income by 50%. This isn't #welfare 'Reform' ....this is #UKLabour Forcing #vulnerable people into non existent jobs. #Work or #die....what a choice! https://t.co/GKQugSNFLw

— Barnaclebum6 (@barnaclebum6) February 10, 2026

He added that the order “maintains the triple-lock, which benefits pensioners in receipt of both the basic and new state pensions, raises the level of the safety net in pension credit beyond the increase in prices, and increases the rates of benefit for those in the labour market, and increases the rates of carers benefits and benefits to help with additional costs arising from disability or health impairment.”

What the DWP benefit increase means for claimants

The 3.8% rise will provide some relief for families facing ongoing cost of living pressures, while pensioners will benefit from a higher 4.8% increase linked to wage growth.

With changes taking effect from April 6, claimants can expect updated payment amounts shortly after the new tax year begins.

The DWP is expected to publish full updated benefit rates ahead of the April rollout.