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Guidance

A14/2025 Housing Benefit uprating for the financial year ending March 2027

Updated 6 March 2026

1. Who should read

All Housing BenefitÌý(HB) colleagues and wider if appropriate.

2. Action

For information.

3. Subject

Housing Benefit uprating for theÌýfinancial yearÌýending March 2027.

4. Queries

You can getÌýextra copies of this circular/copies of previous circulars.

If you want to ask about the technical content of this circular, contact:Ìýhousing.policyenquiries@dwp.gov.uk.

If you want to ask about the distribution of this circular, contact:Ìýlawelfare.correspondence@dwp.gov.uk.

Crown Copyright 2025
Recipients may freely reproduce this circular.

5. Guidance ManualÌý

The information in this circular does affect the content of the HousingÌýBenefitÌýandÌýCouncil Tax BenefitÌýManual and the HousingÌýBenefitÌýOverpayments Guide.Ìý

Housing BenefitÌýand Council Tax BenefitÌýManual:ÌýPlease annotate this circular number againstÌýparagraphÌýA4 4.750, 4.900, A5 Annex A, BW3 Annex A and BP3 AnnexÌýA.ÌýÌýÌý

HousingÌýBenefitÌýOverpayments Guide:ÌýPlease annotate this circular number againstÌýparagraphs 4.260ÌýtoÌý4.264.

6. IntroductionÌý

1. In hisÌýÌýto Parliament onÌý26ÌýNovember 2025, the Secretary of State for the Department for Work and Pensions announced proposals for the social security benefit rates which will apply from April 2026.ÌýÌýÌý

2. This circularÌýadvisesÌýyou of the rates so you can take theÌýappropriate action.ÌýNote: At the time of writing, theÌýOrders or regulationsÌýbringing the changes into effect are still subject to theÌýappropriate parliamentaryÌýprocess.Ìý

3. Any queries about the information contained in this circular should be emailed toÌýhousing.policyenquiries@dwp.gov.ukÌý

7. TimingÌý

4. In line withÌýpreviousÌýpractice, the main Housing Benefit uprating will be introduced in advance of the setting of the main social security benefit rates. To coincide with the week in which many rents change, theÌý2026Ìýuprating will take effect on:Ìý

  • WednesdayÌý1 April 2026Ìýfor cases to whichÌýregulation 79(3)(a)(i)Ìýof the Housing Benefit Regulations 2006Ìý(for Working Age customers) andÌýregulationÌý59(3)(a)(i)Ìýof the Housing Benefit (Persons who have attained the qualifying age forÌýStateÌýPensionÌýCredit (SPC)) Regulations 2006Ìý(for people who have attained the qualifying age for Pension Credit) applies, when rent is paid monthly or at any interval which is not a week or multiples of a week.ÌýÌý

  • MondayÌý6ÌýApril 2026Ìýfor cases to whichÌýregulationÌý79(3)(a)(ii)Ìýof the Housing Benefit Regulations 2006Ìý(forÌýWorkingÌýAge customers) andÌýregulationÌý59(3)(a)(ii)Ìýof the Housing Benefit (Persons who have attained the qualifying age forÌýStateÌýPensionÌýCredit) Regulations 2006Ìý(for people who have attained the qualifying age for Pension Credit) applies, when rent is paid on a weekly basis (or multiple of a week).ÌýÌý

5. The main points are:Ìý

  • The basicÌýState Retirement Pension and the full rate of the new State Retirement Pension are being uprated byÌý4.8%Ìýin line with Average Weekly Earnings and the triple lockÌýinÌýtheÌýfinancial yearÌýending (FYE) March 2027.Ìý

  • The Standard Minimum Guarantee in Pension CreditÌýis being increased byÌý4.8%Ìýthis yearÌýto match the cash increase in the basic State Pension.ÌýThe Savings Credit maximum is increased byÌýtheÌýConsumer Prices Index (CPI)ÌýatÌý3.8%ÌýinÌýtheÌýFYE March 2027.Ìý

  • Premiums paid to pensioner recipients of Working Age benefits will continue to be uprated to match Pension Credit rates.Ìý

  • Premiums paid to disabled people receivingÌýWorkingÌýAgeÌýbenefits and to Employment and Support Allowance claimants in the Support Group, willÌýincreaseÌýbyÌýCPI atÌý3.8%ÌýinÌýtheÌýFYE March 2027.Ìý

  • Working Age benefits (main ratesÌýand certain premiums and additions), includingÌýthe main elements of UniversalÌýCreditÌýand HB personal allowances,Ìýwill increaseÌýbyÌýCPI atÌý3.8% inÌýtheÌýFYE MarchÌý2027.Ìý

9. Uprating of social security benefits: generalÌý

6. The following regulations allow you to take account of these rates onÌý1ÌýApril 2026ÌýasÌýappropriate:ÌýÌý

  • Regulations 42(8) and 79(3) of the Housing Benefit Regulations 2006Ìý

  • Regulations 41(9), 41(10) and 59(3) of the Housing Benefit (Persons who haveÌýattainedÌýthe qualifying age forÌýStateÌýPensionÌýCredit) Regulations 2006.Ìý

Associated guidance is set out in ÌýatÌýChapterÌýBP2ÌýparagraphÌýP2.790.ÌýÌý

7. There is no provision in regulations to uprate a claimant’s social security benefit other than by using the correct amount. Most claimants will know their rates of benefit well before April each year.Ìý

8. We are aware that many local authorities’ (LAs) IT systems apply a percentage increase to uprate income from other social security benefits in the assessment of HB. In previous years we haveÌýadvisedÌýthat this method should, in most cases, produceÌýaccurateÌýresults; providing the LA has satisfied itself as to the accuracy of its method, it should be able to meet its duty to make proper determinations.Ìý

9. However, given the fact that in recent years some of the components paid in addition to the main rates of some benefits and the main rates themselves have been uprated by different indices, LAs should consider carefully whether applying standard percentages will result in correct determinations.ÌýÌýÌý

10. LAs should alsoÌýtake into accountÌýthat specific Automated Transfer to LocalÌýAuthorityÌýSystems (ATLAS) uprating notifications are issued for all benefits onÌýCIS (Customer Information System)Ìýexcept for:Ìý

  • Attendance AllowanceÌý

  • Disability Living AllowanceÌý

  • Personal Independence PaymentÌý

  • Armed Forces Independence PaymentÌý

  • Adult Disability PaymentÌý

  • Child Disability PaymentÌý

  • Carer’s AllowanceÌý

  • State Retirement PensionÌýÌý

  • Bereavement BenefitsÌý

  • Widow’s BenefitÌýÌý

  • Pension Age Disability PaymentÌý

  • Carer’s Support PaymentÌý

  • Scottish Adult Disability AllowanceÌýÌý

11. Should an LA decide to apply a percentage increase to uprate income, as a minimum, any informationÌýsubsequentlyÌýreceivedÌýthroughÌýATLAS should be compared with existing LA system data to ensure it matches.ÌýÌý

12. Since December 2019, LAs have had the facility to use the automation of the Pensions Strategy Computer System (PSCS) uprating process. This allows LAs to use an Application ProgrammingÌýInterface to look up the PSCS benefit amount when needed and removes the requirement for LAs to manually apply the uprating increase to the PSCS amount when conducting their yearly uprating review of claimants’ HB claims as the uprating process can be automated.ÌýÌý

10. New benefit ratesÌý

13. All theÌýproposed new rates are available onÌý°Ç¸ç³Ô¹Ï.ÌýÌý

11. War PensionsÌý

14. The new rates for War Pensions are not yetÌýavailableÌýand details of the new rates will be issuedÌýthroughÌýa separate circular once Veterans UKÌýreleasesÌýthe figures.Ìý

12. Specific points of interestÌý

12.1 Non-dependant deductions in HBÌý

15. TheÌý.ÌýÌý

12.2 Disregards in HB which remain unchangedÌý

16. The childcare disregards in HB remain at:Ìý

  • £175.00 for one childÌý

  • £300.00 for two or more childrenÌýÌý

17. TheÌýadditionalÌýearnings disregard in HBÌýremainsÌýat £17.10. SeeÌý Chapter BW2 paragraphs W2.132 to W2.140.

12.3 Deductions for ineligible fuel chargesÌý

18. TheÌýgovernment has decided toÌýfreezeÌýthe rates for statutory fuel deductions from HB forÌýthe FYE MarchÌý2027.ÌýTheÌý.Ìý

12.4 One room rate deductionÌý

19. The formula for the one room rate deduction is set out in HB Regulations 2006 at Schedule 1, part 2, paragraph 6(2)(a) to (c) and (3). Sub-paragraph (3)ÌýstatesÌýthe ineligible amount for service charges when the accommodation consists of only one room shall be one half of the aggregate of the amounts specified in sub-paragraph (2)(a), (b) and (c).Ìý

12.5 State Pension Credit: maximum Savings CreditÌýÌý

20. The amount of the maximum Savings Credit will beÌý£17.96Ìýfor a single person andÌý£20.10Ìýfor a couple. These figures cannot be used to calculate a likely Savings Credit entitlement from April 2026. Savings Credit is calculated on an individual basis, using the income and capital of that person. In addition, HB (SPC)ÌýRegulation 27 states that the Pension Service calculation of income, capital and Savings Credit must be used.Ìý

12.6 National Insurance contribution ratesÌýÌýÌýÌýÌý

21. A full set of rates for the FYE March 2027Ìýwill be available onÌý°Ç¸ç³Ô¹ÏÌýfromÌý6ÌýApril 2026.ÌýÌý

12.7 Establishing eligible rentÌýÌý

22. The calculation of eligible rent for a claimant renting in the social and private sectors is not affected by this circular or by the uprating of benefits overall. It continues to subject to the rules in Part 3 of the Housing Benefit Regulations 2006 and Part 3 of the HB (SPC) Regulations 2006.