Universal Credit Health Element Reduced for New Claimants in April Changes
The UK Government has implemented significant welfare reforms this week, targeting what ministers describe as a system that has for too long locked disabled people and people with long-term conditions out of work. These changes, which took effect on Monday, April 6, 2026, include a reduction in the health element of Universal Credit for new claimants.
New Claimants Face Lower Monthly Payments
From this date, new claimants for the health element of Universal Credit will receive a lower rate of £217.26 per month. Universal Credit, designed to assist with living costs, is available to individuals on low incomes, whether they are employed, unemployed, or unable to work due to health issues.
However, the government has assured that certain groups will continue to receive the higher monthly rate of £429.80. This includes:
- People with the most severe and lifelong conditions
- Individuals nearing the end of life
- All existing Universal Credit health claimants
Government Aims to Save £1 Billion and Encourage Employment
The Department for Work and Pensions (DWP) states that this adjustment is projected to save taxpayers approximately £1 billion. According to data released last month, there are currently 2.7 million people across England, Scotland, and Wales on Universal Credit who are assessed as having limited capability for work and work-related activity (LCWRA). These individuals are not required to participate in interviews or work-related activities.
Social Security and Disability Minister Sir Stephen Timms emphasized the government's commitment to reforming the welfare system. The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work, he said. Laws coming into force today will change that, reducing projected expenditure on universal credit by almost £1 billion.
Boost to Standard Allowance and Employment Support
In conjunction with these changes, the standard rate of Universal Credit has been increased this week to help mitigate the cost of living. This boost is expected to provide nearly four million households with an additional £295 this year in cash terms.
Minister Timms highlighted the government's broader strategy: Simultaneously boosting the standard allowance and investing £3.5 billion in employment support means we’re creating a welfare system that backs people to work and helps them build a better future. The investment aims to offer tailored employment opportunities, supporting individuals in transitioning into and maintaining work rather than remaining on benefits.
Background on Disability Benefit Reforms
This move follows last year's controversy when ministers were forced to delay plans to reform disability benefits, including those for individuals with mental health conditions, due to opposition from backbench Labour MPs. Instead of immediate changes, the Timms review is currently gathering feedback on Personal Independence Payment (PIP) and its functionality.
PIP provides financial assistance for extra living costs to people with long-term physical or mental health conditions or disabilities that affect their ability to perform daily tasks or mobility. The government has promised that any modifications to PIP will be postponed until after the review concludes.
The review is anticipated to report to Work and Pensions Secretary Pat McFadden by autumn, with an interim update expected beforehand. These developments underscore the ongoing efforts to balance welfare support with fiscal responsibility and employment incentives.
