🔍 Key recent ADM changes (2026)

/ Guidance, Universal Credit / By

1. Major policy changes

  • Removal of the two‑child limit (ADM Memo 03/26)
    • Guidance updated so UC child element is no longer restricted to 2 children in applicable cases.
  • Changes to LCWRA element (Memo 04/26)
    • Updates to how LCWRA is applied within UC (technical entitlement changes).
  • “Right to Try” regulations (Memo 06/26)
    • New guidance affecting decision‑making in health/disability contexts (linked across G, P, U chapters).

2. Universal Credit rates & uprating (April 2026)

  • All relevant chapters updated for 2026/27 benefit rates and work allowances.
  • Examples and calculation tables revised to reflect:
    • New standard allowance figures
    • Updated work allowance levels
    • Revised income interactions

3. Third‑party deductions – significant change

  • Maximum deductions reduced from 30% → 15% of the UC standard allowance.
  • Priority order changed:
    • Child maintenance (CSM) now top priority
    • Previously lower priority and housing costs no longer first

👉 Practical impact: reduced recovery rates + stronger protection for claimants.

4. Carer element & Carer Support Payment (Scotland)

  • Carer guidance updated:
    • Clarifies carer element can continue during relevant periods
    • Removes outdated references and tidies legal citations
  • Carer Support Payment (CSP):
    • Now explicitly treated as unearned income in ADM H5
  • Linked updates from Carer’s Assistance (Consequential Modifications) Order 2026

5. Income rules updates

  • Unearned income (H5):
    • Additional benefits added to lists (e.g. CSP, industrial injuries benefits, SDA)
    • Removal of obsolete provisions and clarifications on disregards
  • Capital rules (H1):
    • Clarifies treatment of direct payments for care as not beneficial capital where recoverable by the LA.

6. Appeals & evidence handling (important for tribunals)

  • New guidance:
    • Evidence to FtT should normally be unredacted
    • Names of decision‑makers and assessors must be included
    • Clear procedure where disclosure is disputed

👉 This strengthens transparency / procedural fairness arguments.

7. Claims, revisions & decision‑making process

  • Amendments to:
    • Claims (A2) and revisions (A3) chapters
    • Incorporation of earlier memos and new paragraphs added

👉 Mainly technical, but relevant for:

  • late revision arguments
  • correcting official error issues

8. Third‑party deductions regulations (2026 SI)

  • ADM updated to reflect new 2026 Regulations affecting:
    • UC, PIP, JSA, ESA claims & payments

9. Miscellaneous but relevant updates

  • PIP added to lists of benefits counted as unearned income in some contexts
  • Examples rewritten to remove jargon and reflect current law
  • Cross‑chapter updates aligning devolved benefits with UK systems (esp. Scotland)

🧾 Bottom line (quick adviser take)

Most important practical changes:

  • âś… Two‑child limit removal (big entitlement impact)
  • âś… Max deductions cut to 15% + new priority order (client protection)
  • âś… Uprating changes across all UC calculations
  • âś… CSP treated as unearned income (Scotland relevance)
  • âś… Stronger FtT evidence transparency rules

Advice for decision making: staff guide – GOV.UK