As the cost of living continues to rise in the UK, this month's inflation figure is particularly significant to the finances of millions of households.

This week saw September's headline rate of inflation (CPI) announced as 3.8 per cent. As usual, this is the amount that most benefits will now rise by in April to reflect rising prices.

This includes the main disability benefits, like PIP, attendance allowance, and carer's allowance, as a legal requirement.

However, there will also be some unprecedented changes to universal credit this year. While all will see an above-inflation rise to the standard allowance for the first time, the health-related element has been strongly cut back.

Here's how much benefits and the state pension will be increasing in April 2026:

The state pension is expected to rise by 4.8 per cent from next April in line with annual earnings growth.

For the full new state pension, this will increase the weekly amount from £230.25 to £241.30 - around £965.20 a month, or £12,547.60 a year. This is just below the £12,570 income tax personal allowance threshold, so will remain tax free.

The full basic state pension with increase from £176.45 a week to £184.92 - equalling around £739.68, or £9,615.84 a year.

The standard rate of UC is set to receive an above inflation rise of 6.2 per cent - here's what that means for claimants:

From April, the monthly payment rate for the health-related element of universal credit for new claimants will be cut from £105 to £50.

For existing claimants of this element, the additional rate will be frozen at £97 a week until 2029/30.

These changes follow the passage of the government's Universal Credit Act, which uplifted the standard allowance of the benefit whilst greatly reducing the health-related element.

The payment rate for PIP should increase by 3.8 per cent in April, in line with inflation. The health and disability-related benefit for one or two parts, both at either a higher or lower rate. Here's what the uprating will mean:

The 'guarantee' amount of pension credit is usually uprated in line with the state pension's triple lock guarantee. This means it should rise by 4.8 per cent.

Unlike most other benefits, pension credit is not paid at a set rate, but instead tops up a person's income to a guaranteed minimum amount. From April 2026, this should rise from £227.10 a week to £238.

In April, carer's allowance should increase in line with inflation by 3.8 per cent. This will take it from £83.30 a week to £86.47.

Attendance allowance should rise with inflation in April from £110.40 a week to £114.60.

Unlike most other benefits, housing benefit is paid by local authorities to households in their area. The amount that each council pays is dependent on local housing allowance (LHA) rates, calculated by the DWP based on private rental costs in that area.

After ending four years of freezes and re-pegging the rates to cheapest 30 per cent of local rents in April 2024, the Labour government announced LHA rates would be frozen again.

This means anyone in receipt of housing benefit should not expect it to go up in April 2026.

For the latest benefit and pension payment dates, plus cost of living support, visit The Independent's regularly updated guide

How much are benefits and pensions increasing in April?