The Department for Work and Pensions has confirmed several major changes affecting millions across the UK in 2025 and 2026.
On 16 September 2025, the government officially announced that State Pensions will rise by 4.7% from April 2026 under the triple lock system. This increase is based on recent earnings growth figures published by the Office for National Statistics and marks one of the highest rises in years. Pensioners receiving the full new State Pension will see their annual payment go up by £562 to £12,535 – or £241 a week. Those on the basic State Pension will get £184.75 weekly, an annual increase of £431.60. However, with the income tax threshold frozen at £12,570, more pensioners will be liable to pay income tax for the first time from 2027.
Meanwhile, the DWP’s managed migration to Universal Credit continues, with all migration notices required to be sent by December 2025. Existing legacy benefits including tax credits will end by March 2026. Claimants have three months from receiving their migration letter to apply for Universal Credit, with a one-month grace period offered for those who miss the deadline. Transitional protection will be available to eligible claimants who claim on time, helping to avoid any sudden drop in income.
Significant changes are also coming to health-related payments. From April 2026, the Limited Capability for Work-Related Activity (LCWRA) element of Universal Credit will be cut from £423.27 to £217.26 per month for new claimants, though existing recipients will keep the higher rate.
For winter 2025-26, the DWP has confirmed that Winter Fuel Payments ranging from £200 to £300 will continue, supporting those born before 21 September 1959. Most eligible pensioners will receive a letter in October or November, and automatic payments will be made starting from mid-November 2025. Households with an income above £35,000 will see their payments recovered through the tax system. In addition, Universal Credit claimants can expect a £725 cost-of-living payment in autumn 2025, with standard October benefit payments proceeding as usual.
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