Universal Credit rates for 2027/28 are not yet confirmed and are typically announced in DWP’s autumn Budget/uprating statement (usually around November) — so figures below for 2027/28 should be treated as provisional until confirmed nearer April 2027. Current confirmed 2026/27 reference rates and how UC is calculated are set out below.
Last reviewed: September 2026. 2027/28 UC rates will be confirmed in the autumn 2026 Budget/uprating announcement and apply from April 2027. This page will be updated when confirmed.
Universal Credit Standard Allowances — Reference 2026/27 (Confirmed)
| Claimant | Monthly (2026/27) | Annual |
|---|---|---|
| Single, under 25 | £338.58 | £4,063 |
| Single, 25 or over | £424.90 | £5,099 |
| Couple, both under 25 | £528.34 | £6,340 |
| Couple, one or both 25+ | £666.97 | £8,004 |
2027/28 rates to be confirmed autumn 2026 — provisional, confirm nearer April 2027.
Universal Credit Elements — Reference 2026/27 (Confirmed)
| Element | Monthly (2026/27) |
|---|---|
| First child (born before April 2017) | £351.88 |
| First/second/subsequent child (born after April 2017) | £303.94 |
| Disabled child (lower) | £164.79 |
| Disabled child (higher) | £514.71 |
| Limited capability for work (LCW) — pre-April-2017 claims only | £158.76 |
| LCWRA — new claims from April 2026 | £217.26 |
| LCWRA — protected rate (pre-2026 claimants, severe conditions, or terminally ill) | £429.80 |
| Carer element | £209.34 |
Note: The two-child limit was removed from 6 April 2026, so every child now attracts a child element — see our two-child limit guide for details.
Work Allowances — Reference 2026/27 (Confirmed)
| Higher (no housing costs) | Lower (with housing element) | |
|---|---|---|
| Work allowance | £710/month | £427/month |
| UC taper (above work allowance) | 55p per £1 earned | 55p per £1 earned |
If you have no work allowance (no children, no LCWRA), all earnings reduce UC at 55p/£1 from £0. 2027/28 figures to be confirmed autumn 2026.
How UC Taper Works — Example
Single claimant, 25+, employed, no children, no housing costs (2026/27 rates):
| UC standard allowance | £424.90/month |
| Work allowance | None (no children, no LCWRA) |
| Earnings | £800/month |
| UC reduction (55% × £800) | −£440 |
| UC payable | £0 (reduced to nil) |
| UC nil earnings point: | ~£772/month |
With children (higher work allowance £710/month):
| Maximum UC standard + child element | £424.90 + £303.94 = £728.84 |
| Work allowance | £710/month |
| Earnings | £1,200/month |
| UC reduction (55% × (£1,200 − £710)) = 55% × £490 | −£269.50 |
| UC payable | £459.34 |
Benefit Cap — 2026/27 (Confirmed; 2027/28 Provisional)
The benefit cap limits the total benefits a household can receive (other than UC disability elements). The cap has been frozen since 2024, and the confirmed 2026/27 figures are:
| Household | Outside London | London |
|---|---|---|
| Couples / lone parents (with children) | £22,020/year | £25,323/year |
| Single, no children | £14,753/year | £16,967/year |
Benefit cap figures for 2027/28 are not yet confirmed — provisional, confirm nearer April 2027.
Savings and Capital Rules
Universal Credit applies a capital tariff to savings:
| Savings | Impact on UC |
|---|---|
| Under £6,000 | No impact |
| £6,000–£16,000 | Assumed income of £4.35/month per £250 above £6,000 |
| Over £16,000 | Not eligible for UC |
Example: If you have £10,000 in savings, the tariff income = (£10,000 − £6,000) / £250 × £4.35 = £69.60/month assumed income, which reduces your UC by £69.60/month. These capital limits have not changed for several years and there is no announced plan to uprate them for 2027/28 — confirm nearer the time.
Capital includes savings accounts, ISAs, stocks and shares, and property (other than your main home). Property you own is counted at its estimated market value minus any mortgage or secured loan.
Self-Employment and the Minimum Income Floor
If you are self-employed and on Universal Credit, the Minimum Income Floor (MIF) may apply after a 12-month grace period:
- The MIF assumes you earn the equivalent of the National Living Wage for your expected working hours, regardless of your actual earnings
- If your actual self-employment profit is below the MIF, UC is calculated as if you earned the MIF amount
- The MIF does not apply during your first 12 months of self-employment, or if you have a good reason for lower earnings (e.g. illness)
Example (2026/27): Single claimant, expected 35-hour week. National Living Wage from April 2026 is £12.71/hour (21+). MIF ≈ 35 hrs × £12.71/hr × 52 ÷ 12 = ~£1,928/month assumed earnings, even if actual profit is lower.
Migration from Legacy Benefits
DWP’s managed migration programme has been transitioning claimants from legacy benefits (Housing Benefit, Tax Credits, Income Support, income-related ESA/JSA) to Universal Credit, with a target completion date of March 2026. If you receive a migration notice:
- You have 3 months to claim UC (date shown on your letter)
- If your existing entitlements are higher than UC, you receive transitional protection — an extra element added to UC to make up the difference
- Transitional protection erodes over time if your circumstances change
If you have not yet received a migration notice, check directly with DWP or HMRC on your current position, since the managed migration programme’s target completion date has now passed for most claimant groups.