UK Government Increases State Pensions and Benefits by 3.9%

The Department for Work and Pensions announced new benefit payment rates for the 2027-28 tax year, with the majority of increases scheduled to take effect on April 12, 2027. The adjustments follow a statement to Parliament by Work and Pensions Secretary Pat McFadden after the Budget.

Basic and new State Pensions will increase by 3.9% based on the Average Weekly Earnings index. Working-age and disability benefits, including the Disability Living Allowance, will rise by 3.5% to align with the September 2026 Consumer Prices Index.

Universal Credit standard allowances will receive a 3.5% increase along with an additional uplift under the Universal Credit Act 2025. As a result, monthly payments for single claimants aged 25 and over will rise from £424.90 to £443.21.