The Department for Work and Pensions (DWP) has confirmed a significant reduction in Universal Credit payments for new claimants with health conditions, a move that will cost individuals up to £2,652 per year. The controversial changes, set to be implemented under the current Labour government, have ignited widespread criticism.
Details of the Universal Credit Reduction
In a written response to a parliamentary committee, the DWP stated that the new, lower health element will take effect on 6 April 2026. The change is enabled by the Universal Credit Act, which received Royal Assent on 3 September 2025.
Under the new system, individuals who develop a disability or health condition after the April 2026 deadline will receive £54 per week in health-related Universal Credit support. This is a drastic reduction from the £105 per week currently provided to claimants with similar conditions who applied before the changes.
Poverty Warnings and Political Backlash
The cuts have sparked fury, with Committee Chair Debbie Abrahams issuing a stark warning. Citing government analysis from March, she stated that from next April, approximately 50,000 people who develop a health condition or become disabled – and their households – will be pushed into poverty by 2030 as a direct result of the reduction.
Abrahams and the committee have recommended delaying the cuts to the UC health premium. They argue that alternative support structures, such as increased NHS capacity or enhanced employment support, are not yet in place to mitigate the impact on vulnerable individuals.
Government Justification for the Cuts
In its defence, the DWP restated its argument that the reduction is necessary to address what it calls "perverse incentives" within the benefits system. The department contends that the change, alongside a sustained above-inflation increase to the standard allowance, will better encourage those who can work to enter or return to employment.
An updated Impact Assessment for the legislation was published in July 2025, outlining the expected outcomes of the policy shift. The DWP has stated it will keep standard allowance rates under review, but has firmly committed to implementing the lower health element for new claimants from the stipulated date.
