The Department for Work and Pensions (DWP) will proceed with changes to the Universal Credit (UC) health element starting on April 6, 2026. This decision comes despite concerns from a cross-party group of Members of Parliament (MPs) who have called for a postponement to allow for a comprehensive assessment of the impact on disabled individuals.
In its third report on the “Get Britain Working: Pathways to Work” green paper, the Work and Pensions Committee proposed six key recommendations. Among these was a suggestion to increase the Universal Credit standard allowance throughout the current Parliament and delay the reduction of the health element until an independent evaluation could be completed. The DWP, however, responded firmly, stating, “The new, lower UC health element will take effect on 6 April 2026. We will keep standard allowance rates under review.”
This forthcoming change is part of the recently enacted Universal Credit Act, which received Royal Assent on September 3, 2025. The legislation aims to provide the first sustained increase in the UC standard allowance that exceeds inflation, benefiting millions of recipients. The DWP claims that these modifications, including the reduction in the health element for new claimants, will help eliminate “perverse incentives” within the UC system and encourage those who are able to work to seek employment.
The DWP has indicated that nearly four million households will see an annual income boost estimated at £725 due to these reforms. The adjustments to the core payment and health top-up under UC are intended to align financial support with the needs of claimants.
Concerns Over Financial Support Disparities
Debbie Abrahams, Chair of the Work and Pensions Committee, expressed significant concerns regarding the DWP’s response to the recommendations. She highlighted that from April 2026, individuals with new disabilities or health conditions will receive just £54 per week under the UC health element, compared to £105 per week for those who qualify under the current system.
“This is not only discriminatory,” Abrahams stated, “but without mitigations, will potentially push more people with disabilities and health conditions into poverty, exacerbating their condition and pushing them further away from the labour market.”
She also noted the potential fiscal benefits for the Government, suggesting that a recent analysis estimated up to £12.5 billion in savings could be achieved through reduced health claims and increased tax revenue if the DWP enhances its employment and health support services.
Details of the Universal Credit Act Reforms
The DWP has outlined several measures within the Universal Credit Act aimed at rectifying what it describes as a “fundamental imbalance” in the system. These changes include:
– An increase in the Universal Credit standard allowance above inflation for the next four years, expected to reach £725 by the fiscal year 2029/30 for single adults aged 25 or over.
– A reduction in the health top-up for new claims to £50 per week starting in April 2026.
– Assurance that all existing recipients of the UC health element and any new claimant meeting the Severe Conditions Criteria will continue to receive the higher payment post-April 2026.
– Exemptions from reassessment for individuals with the most severe, lifelong conditions.
The DWP’s commitment to these changes indicates a significant shift in the landscape of welfare support in the UK, with implications for many vulnerable individuals. Stakeholders will be keenly observing how these adjustments unfold and their long-term effects on the disabled community and the broader social safety net.
