The Department for Work and Pensions (DWP) is set to implement a significant reduction in financial support for many new Universal Credit claimants with health conditions or disabilities from this spring.
What is Changing with the LCWRA Payment?
The government, led by the Labour Party, is reforming the 'health element' of Universal Credit, specifically the Limited Capability for Work and Work-Related Activity (LCWRA) component. This element is currently an additional £437.27 per month for eligible individuals who have been assessed as having a limited capability for work due to illness, disability, or a long-term health condition.
However, from 6 April 2026, the value of this support will be substantially lower for most people who start claiming it after that date. The payment will drop to £217.26 per month, representing a cut of £220.01 compared to the current rate.
Key Dates and Exceptions to the New Rules
This change creates a crucial deadline for potential claimants. The central rule is clear: if you start receiving the LCWRA element before 6 April 2026, you will continue to get the higher rate. If your claim is assessed and awarded after this date, you will typically receive the new, lower amount.
There are exceptions to this reduction. According to information from the forum Benefits and Work, some individuals may continue to receive the higher rate if they "fit an exception to the rules." The details of these exceptions are not fully outlined in the initial announcement, suggesting claimants may need to seek specific advice.
The annual uprating of benefits in April is still expected to apply, meaning the exact figures for both the old and new rates may see a slight increase, but the £220 gap between them will remain.
Urgent Action Required for Current Claimants
For those who believe they may be eligible for the LCWRA element, acting swiftly is now critical. The process involves informing the DWP about your health condition or disability and how it affects your ability to work. This must be done as soon as possible due to the standard three-month waiting period before the extra payment begins.
To have a chance of locking in the current, higher payment rate, you likely needed to have reported your health condition to the DWP between 6 December 2025 and 5 January 2026. This timeline ensures the three-month assessment period concludes before the April deadline.
The overarching message for anyone in this situation is to apply immediately. Delaying your application or health assessment report guarantees you will fall under the new, less generous rules, resulting in a significant loss of essential financial support each month.
