Money matters – February 2026
February 11th 2026, by SamM
What’s changed in the government’s budget, and what could it mean for you?
On 26 November 2025, the government announced some changes to benefits and wages in their autumn budget.
Changes for everyone
Prescription costs
Prescription costs will stay the same. This is good news if you rely on regular medication. You may not need to pay at all, depending on your age, health condition or other benefits you receive.
Travel costs
Rail fares will be frozen, meaning they won’t go up. Tube fares are expected to rise next year, but bus fares will stay frozen for longer.
Changes for people claiming benefits
Since 2017, Universal Credit (UC) usually only pays extra money for up to two children, even if parents may have more. From April 2026, this rule will be removed meaning families will be able to receive child-related support for all dependent children, not just the first two.
The maximum amount of childcare costs you can get help with will increase by £736.06 per month for each additional child.
Benefits going up
- State Pension
- Working-age benefits
- The UC standard allowance
Wages increasing
Both the National Minimum Wage and National Living Wage will go up, meaning higher pay for many workers.
Important notes to consider
The benefit cap may still apply
Some families with three or more children may not see extra money from the end of the two-child limit. The benefit cap limits how much total benefit a household can receive. You may not be affected by the benefit cap if:
- Someone in the household is working and earning above a set amount
- You receive certain disability-related/carer benefits
Some families may now hit the benefit cap
A small number of families who were not affected by the benefit cap before may now be affected because their UC increases.
Transitional protection
If you receive transitional protection, this may reduce or disappear when your entitlement changes. This hasn’t been fully confirmed yet, but it may mean your payment only increases slightly or not at all.
Other updates
Changes to LCWRA payments
A new, lower rate of Limited Capability for Work-Related Activity (LCWRA) is being introduced. This rate will be £217.26. LCWRA is paid to people who have long-term health conditions or disabilities and are not expected to work or prepare for work.
Universal Credit checks continuing
UC checks (called targeted case reviews) will continue until 2031. You may be asked to confirm your identity and share bank statements. These checks are used to make sure payments are correct and to prevent mistakes or fraud.
If you’re unsure how any of these changes might affect you or your family, our Welfare Advice Team is here to help.
You can contact them on:
Telephone: 020 8680 7532
Freephone: 0800 054 6710
Email: income@ccha.biz