UK Labour Government expands Universal Credit benefits

The UK Labour Government, led by Andy Burnham and Chancellor John Healey, announced two new Universal Credit measures. All households receiving Universal Credit will receive a one‑time £150 winter energy discount, applied as a credit or voucher between November and January.

The government also scrapped the two‑child benefit cap, allowing families with three or more children to receive higher monthly payments. Households with three children will get an extra £304 per month (£3,648 per year) and those with four children an extra £608 per month. The changes aim to lift children out of poverty, despite criticism that they may incentivise larger families.