Universal Credit Act 2025
2025 Chapter 22An Act to make provision to alter the rates of the standard allowance, limited capability for work element and limited capability for work and work-related activity element of universal credit and the rates of income-related employment and support allowance.
Enacted
[3rd September 2025]
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Universal credit¶
I11 Standard allowance for tax years 2026-27 to 2029-30¶
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Step 1Where the tax year is 2026-27, take the amounts of the standard allowance for tax year 2025-26.Where the tax year is 2027-28, 2028-29 or 2029-30, take the amounts resulting from Step 2 for the previous tax year.
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Step 2Increase the amounts identified in Step 1 by the relevant CPI percentage for the tax year.
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Step 3Increase the amounts resulting from Step 2 by the relevant uplift percentage for the tax year.
| Tax year | Relevant uplift percentage |
|---|---|
| 2026-27 | 2.3% |
| 2027-28 | 3.1% |
| 2028-29 | 4.0% |
| 2029-30 | 4.8% |
I102 LCWRA element for tax year 2026-27¶
;
I23 Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30¶
I34 Protected LCWRA amount for tax years 2026-27 to 2029-30¶
I45 Legacy employment and support allowance payments¶
Corresponding provision for Northern Ireland¶
I56 Corresponding provision for Northern Ireland¶
Schedule 2 makes provision for Northern Ireland which corresponds to that made by the previous provisions of this Act.Short title¶
I67 Short title¶
This Act may be cited as the Universal Credit Act 2025.Schedules
Schedule 1 ¶
Amendments to the Universal Credit Regulations 2013 in connection with new amounts of the LCWRA element
Section 2
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;
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Schedule 2 ¶
Northern Ireland: corresponding provision
Section 6
I71 Standard allowance for tax years 2026-27 to 2029-30¶
-
Step 1Where the tax year is 2026-27, take the amounts of the standard allowance for tax year 2025-26.Where the tax year is 2027-28, 2028-29 or 2029-30, take the amounts resulting from Step 2 for the previous tax year.
-
Step 2Increase the amounts identified in Step 1 by the relevant CPI percentage for the tax year.
-
Step 3Increase the amounts resulting from Step 2 by the relevant uplift percentage for the relevant tax year.
| Tax year | Relevant uplift percentage |
|---|---|
| 2026-27 | 2.3% |
| 2027-28 | 3.1% |
| 2028-29 | 4.0% |
| 2029-30 | 4.8% |
I202 LCWRA element for tax year 2026-27¶
;
.
;
;
;
I83 Protected LCWRA amount for tax years 2026-27 to 2029-30¶
I94 Legacy employment and support allowance¶
Footnotes
- I1S. 1 in force at Royal Assent
- I2S. 3 in force at Royal Assent
- I3S. 4 in force at Royal Assent
- I4S. 5 in force at Royal Assent
- I5S. 6 in force at Royal Assent
- I6S. 7 in force at Royal Assent
- I7Sch. 2 para. 1 in force at Royal Assent
- I8Sch. 2 para. 3 in force at Royal Assent
- I9Sch. 2 para. 4 in force at Royal Assent
- I10S. 2 in force at 6.4.2026, see s. 2(3)
- I11Sch. 1 para. 2 in force at 6.4.2026, see s. 2(3)
- I12Sch. 1 para. 3 in force at 6.4.2026, see s. 2(3)
- I13Sch. 1 para. 4 in force at 6.4.2026, see s. 2(3)
- I14Sch. 1 para. 5 in force at 6.4.2026, see s. 2(3)
- I15Sch. 1 para. 6 in force at 6.4.2026, see s. 2(3)
- I16Sch. 1 para. 7 in force at 6.4.2026, see s. 2(3)
- I17Sch. 1 para. 8 in force at 6.4.2026, see s. 2(3)
- I18Sch. 1 para. 9 in force at 6.4.2026, see s. 2(3)
- I19Sch. 1 para. 10 in force at 6.4.2026, see s. 2(3)
- I20Sch. 2 para. 2 in force at 6.4.2026, see Sch. 2 para. 2(10)
- I21Sch. 1 para. 1 in force at 6.4.2026, see s. 2(3)