Universal Credit Health Payment Slashed by £188 Monthly for New Claimants
The Government has announced controversial cuts to Universal Credit, with new claimants set to lose £188 a month from April 2026. This reduction targets the health top-up payment, which is provided to individuals whose disabilities or medical conditions affect their ability to work.
Details of the Payment Reduction
Currently valued at £97 per week, the health element of Universal Credit will be reduced to £50 per week for most new claimants. This represents a cut of nearly 50%, amounting to a monthly loss of £188 compared to the previous rate. The payment will also be frozen in future years, meaning it will not increase with inflation.
Exceptions to the new rules include individuals with the most serious and life-limiting conditions, who will continue to receive the original rate. For existing claimants, the payment will be maintained at the current level and adjusted based on the Consumer Price Index (CPI).
Government Justification and Criticism
Ministers have defended the move by highlighting that the Universal Credit standard allowance will rise above inflation, potentially putting more money into recipients' pockets overall. However, this explanation has failed to satisfy critics, who argue that the cuts will disproportionately impact vulnerable households.
The decision has sparked particular concern due to the creation of a two-tier system, where new claimants with the same conditions as existing ones will receive significantly less support. This disparity arose after Labour rebels blocked the Government from applying the cuts to current claimants, leading to what some describe as a messy and unfair policy.
Broader Context and Independent Review
These changes are part of wider welfare reforms, including plans to cut Personal Independence Payments (PIP), which are currently under independent review. Citizens Advice has clarified the impact, stating that the UC bill reduces the health element by nearly 50% for new claimants, except those with severe, lifelong conditions.
The organization emphasized that for current claimants and new claimants meeting the severe conditions criteria, the UC health payment will remain at the original rate and be uprated in line with CPI. This move has intensified debates over the adequacy of financial support for disabled individuals and those with health issues in the UK.
