2026/2027 Benefit and Minimum Income Guarantee rates

Why might it be of interest?

Most benefits go up slightly each year and the government set minimum income guarantee may also go up each year – although it was frozen for several years recently.

It’s not difficult to find the current rates online but it can sometimes be a bit confusing as to which benefits are available for our young people and why.

Minimum Income Guarantee (MIG)

The government sets a MIG each year – it usually goes up a little but can be frozen.  This is the amount of money the government says a disabled person should be allowed to keep from their benefits before social care can ask for a contribution towards their care package.  This is only about benefits – not earned income.

These figures are allowances against your actual income from benefits – this isn’t money you actually receive but money you are allowed to keep from your benefits before making a contribution towards your social care package.  (2026-2027).

It is not a single figure – there are rates for individuals and couples and rates for various premiums.  The figures in the table below are the ones most relevant to disabled young people.  You can read more here:  https://www.gov.uk/government/publications/social-care-charging-for-local-authorities-2026-to-2027/social-care-charging-for-care-and-support-2026-to-2027-local-authority-circular.

Disability premium:  you get this allowance if you are, or the LA considers you would be, in receipt of income support

Enhanced disability premium:  you get this allowance if you are in receipt of PIP enhanced daily living component or DLA high rate care

For reference – Income support:  this is a legacy benefit so you can no longer apply for it.  A person would have been eligible for income support if all of the following apply:

• They have no income or a low income
• Less than £16,000 in savings
• They are not in full-time paid work
• They are between 16 and pension credit qualifying age
• They live in England, Scotland or Wales, and
• They are unable to work and receive statutory sick pay, incapacity benefit or severe disablement allowance (both incapacity benefit and severe disablement allowance are legacy benefits themselves.  They were replaced by Employment Support Allowance which is also now a legacy benefit – young people claim Universal credit.  I don’t know for sure but I think this point would be met if a young person is deemed to have a limited capability for work (LCW) or limited capability for work related activities (LCWRA)

Personal Expenses Allowance:  this is the amount of money a person is allowed to keep from their benefits if they are in residential care funded by the local authority.  This applies to people of all ages.  Local Authorities have the discretion to allow a person to keep more of their benefits but they don’t have to agree.

Universal Credit

You can find a poster will all benefits rates for 2025/26 here:  https://www.benefitstraining.co.uk/wp-content/uploads/2025/04/btc_benefits_rates_poster_april_2025.pdf.  The figures below are for 2026/27.

LCWRA group / Health element:  Currently, disabled people are assigned to the LCWRA (limited capability for work related activity) group as a result of a Work Capability Assessment (WCA).  This allowance is now also being referred to as the Health Element.

*From April 2026 this element will be reduced to approx £50 per week for new applicants.  Another proposal to limit access to the LCWRA element is that young people under 22 will not be able to claim it – this is still a proposal due to come in to effect in 2027/28.

An additional payment to bring the total amount up to the pre-2026 level is for severe and lifelong conditions.  Claimants will meet the ‘severe conditions criteria’ if they would meet one of the current criteria for an award of LCWRA. The criteria must apply to them constantly and will do so for the rest of the claimant’s life.  We don’t have any experience yet of how easy – or likely otherwise – it will be to get this additional payment.

You might find it helpful to have a look at the Work Capability Assessment criteria here:  https://ruils.co.uk/article/work-capability-assessment-points/