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The Department for Work and Pensions ( DWP ) has announced a series of changes due to hit people on Universal Credit from April 2026. Nearly four million households will see an annual income boost estimated to be worth £725.

The changes come as the Universal Credit Act 2025 - a Bill to overhaul the welfare system - has now officially been made an Act of Parliament after it received Royal Assent on September 3.

Reforms set out in the Universal Credit Bill look to rebalance the core payment and health top-up in Universal Credit. The Bill will see the Universal Credit standard allowance permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over, reports the Daily Record .

According to the Institute for Fiscal Studie

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