The Department for Work and Pensions (DWP) has confirmed that it will proceed with changes to the Universal Credit (UC) health element, set to take effect on April 6, 2026. Despite concerns from a cross-party group of Members of Parliament (MPs), the DWP stated it will not delay the implementation of reduced health benefits.
In its third report on the Get Britain Working: Pathways to Work green paper, the Work and Pensions Committee proposed six recommendations, including an increase in the UC standard allowance throughout the current parliamentary term. The committee urged delaying the health element reduction until an independent assessment of its impact on disabled individuals could be completed.
In response to the committee’s recommendations, the DWP reaffirmed that the new, lower UC health element would be enforced as planned. The department emphasized the importance of these changes in addressing “perverse incentives” within the UC system, encouraging those capable of work to enter or return to employment.
The Universal Credit Act, which received Royal Assent on September 3, 2025, mandates the first sustained increase above inflation to the standard allowance, benefiting millions. Under the new legislation, nearly four million households are expected to receive an annual income boost of approximately £725. This increase is designed to adjust both the core payment and health top-up in UC.
Key Changes and Concerns Raised
The DWP outlined that the reforms would lead to a permanent rise above inflation for the UC standard allowance, reaching £725 by the 2029/30 financial year for single individuals aged 25 or older. However, the reduction in the health top-up for new claimants is particularly contentious. Starting in April 2026, individuals with a new disability or health condition will receive £54 per week, significantly lower than the £105 provided to those claiming prior to this date.
Debbie Abrahams, Chair of the Work and Pensions Committee, raised serious concerns regarding this disparity, stating, “This is not only discriminatory, but without mitigations, will potentially push more people with disabilities and health conditions into poverty.” She highlighted that such policies could exacerbate existing health issues and distance individuals from the job market.
Abrahams also pointed out that addressing these issues effectively could save the government up to £12.5 billion in Department for Work and Pensions spending by reducing health claims and increasing tax receipts by the end of the decade.
Legislative Measures and Future Implications
The DWP has outlined several measures within the Universal Credit Act aimed at rebalancing the health and standard elements of UC. These measures include:
– Increasing the UC standard allowance above inflation for the next four years, estimated to be worth £725 by 2029/30 for individuals aged 25 or over.
– Reducing the health top-up for new claims to £50 per week starting in April 2026.
– Ensuring that all existing recipients of the UC health element and new claimants meeting the Severe Conditions Criteria or qualifying under the Special Rules for End of Life (SREL) will continue to receive the higher health payment after April 2026.
– Providing exemptions from reassessment for those with the most severe, lifelong conditions.
As the DWP moves forward with these changes, the implications for vulnerable populations will be closely monitored. The government’s commitment to reviewing standard allowance rates will be crucial in addressing ongoing concerns raised by advocacy groups and MPs alike. For more details on the recommendations made by the Work and Pensions Committee and the government’s response, further information is available on the GOV.UK website.
