Universal Credit: Inflation

(asked on 25th March 2025) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government, further to the remarks by Baroness Sherlock on 18 March (HL Deb col 1203), whether the above-inflation increase in the standard rate of Universal Credit by the end of this Parliament represents an above-inflation increase in any year other than 2026–27.


Answered by
Baroness Sherlock Portrait
Baroness Sherlock
Minister of State (Department for Work and Pensions)
This question was answered on 3rd April 2025

The announced increase in the standard allowance will see an above inflation increase in every year from 2026/27 to the end of Parliament.

The proposed increases are inflation (measured by CPI), plus: 2.3% in 2026/27, 3.1% in 2027/28, 4.0% in 2028/29 and 4.8% in 2029/30.

As such, in each year, the rates will be what they would have been under CPI uprating and then increased by the relevant percentage figure.

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