Single households over the age of 24 are set to receive up to £297 extra per year from the Department for Work and Pensions (DWP) in 2026, thanks to changes announced in the Budget.

Chancellor Rachel Reeves delivered the autumn Budget to the Commons last week, outlining a raft of tax and spending plans for the year ahead. Among the announcements, Reeves confirmed an increase to the Universal Credit Standard Allowance, which will give eligible households an income boost of more than £200 per year from April when the new rates take effect. Currently, the standard monthly allowance for those who are single and aged 25 or over is £400.14. As Universal Credit is paid once a month, it means households would receive up to £4,801.68 per year.

But from April 2026, the standard monthly allowance will increase to £424.90 per month, giving single households aged 25 and over up to £5,098.80 per year. It means that claimants will get up to £297.12 extra per year from the DWP once the new rates take effect in April.

Couples are also set to benefit from an uplift, with the monthly standard allowance for those who live together and are aged 25 or over rising from £628.10 per month (or £7,537.20 per year) to £666.90 per month (or £8,002.80 per year). This would give eligible couples up to £465.60 extra per year from the DWP from April 2026.

Following the Budget announcement, HM Treasury said: "The Universal Credit Standard Allowance for a single person aged 25 or over will increase by around £295 a year, over £110 more than if up-rated by inflation alone.

"For couples, where one partner is aged 25 or over, it will increase by around £465 a year, approximately £180 more than if up-rated by inflation alone."

Universal Credit is awarded to households on a low income or those who need help with living costs. You may be able to claim it if you're out of work, unable to work, or even if you're working, including if you're self-employed or work part time.

To claim, you must live in the UK, be aged 18 or over (although there are some exceptions for 16 to 17-year-olds), be under State Pension age, and have £16,000 or less in money, savings and investments.

If you qualify, the amount you get from the DWP per month will depend on your standard allowance, any extra amounts that apply to you, any money taken off your payment, and, if you're working, how much you earn.

The Chancellor also confirmed in the Budget that the two-child benefit cap is being scrapped from April 2026, which is expected to lift "450,000 children out of poverty".

The cap has prevented parents from claiming Universal Credit or Tax Credits for more than their first two children, but this will change in 2026.

The cap was introduced by the Conservative government in 2017 and has been widely criticised by Labour MPs and anti-poverty advocate groups. The change in the rules from April is estimated to cost £3 billion by 2029-30, according to the OBR.