Universal Credit
The question
To ask the Secretary of State for Work and Pensions, if her Department will take steps to (a) update the basic rate of Universal Credit annually inline with inflation and (b) introduce an essentials guarantee to reflect the cost of living.
Answered by Sir Stephen Timms
We will bring in a permanent, above inflation, rise to the standard allowance in Universal Credit for the first time ever by raising the standard allowance above inflation from 2026/27 until 2029/30. This is in stark contrast to a freeze between 2016/17 and 2019/20 and crucially, this is a permanent increase so we can give families certainty. To the lowest income and working families up and down the country this will be crucial.
We have also uprated benefit rates for 2025/26 in line with inflation and are introducing a new Fair Repayment Rate, allowing 1.2 million households to keep more of their Universal Credit.
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