Thousands of Universal Credit claimants are poised to experience a sharp reduction in their monthly payments as the Labour government implements a significant reform targeting health-related support. Starting April 6, 2026, the Limited Capability for Work and Work-Related Activity (LCWRA) component of Universal Credit will be drastically reduced from £423.27 to £217.26 per month for new claimants.
This policy change means that claimants applying for Universal Credit on or before April 5, 2026, will continue to receive £105.82 per week under the LCWRA element. However, those making claims after this date will receive only £54.32 weekly, resulting in an annual loss of approximately £2,472.
The LCWRA is an assessment used by the Department for Work and Pensions (DWP) to determine whether a claimant is eligible for additional support due to limited capability to work, typically following a Work Capability Assessment. This assessment places individuals either in the Support Group for New Style Employment and Support Allowance (ESA) or identifies them as having Limited Capability for Work-Related Activity for Universal Credit.
READ MORE: DWP Claimants Urged to Opt Out of Winter Fuel Payment to Avoid £33 Monthly Repayment
READ MORE: Disputes Erupt Within Reform UK as Farage’s Party Battles to Dominate Birmingham
The DWP evaluates claimants using a list of everyday task descriptors to assess their ability to prepare for and engage in work-related activities. Those who do not meet the criteria for work-ready status qualify for the LCWRA element, which currently provides an extra £423.27 monthly payment.
Citizens Advice clarifies that claimants designated as having ‘limited capability for work-related activity’ are exempt from work commitments and receive this additional LCWRA payment to support their circumstances. However, from April 6, 2026, the LCWRA payments will be split: existing recipients will receive a higher amount of £429.80 per month, while new claimants will receive the lower rate of £217.26, depending on their specific circumstances.
This policy adjustment signifies a major shift in the government’s approach to supporting disabled and health-impaired Universal Credit claimants, leading to substantial financial implications for those newly applying after the specified date.