Andy Burnham’s government is moving forward with significant changes to Universal Credit following a recent law amendment introduced by Sir Keir Starmer’s administration. The change aims to reduce the disparity between payments made to those on health-related benefits and individuals actively seeking employment.
Before resigning as Prime Minister, Sir Keir’s government committed to investing over £3.5 billion in employment support by the end of the decade. This investment is designed to provide personalized assistance, enabling Universal Credit claimants to acquire skills for better job opportunities, enhance their living standards, and contribute to a growing workforce and economy.
Under these reforms, four million households receiving the standard Universal Credit rate will benefit from the first sustained above-inflation increase in Department for Work and Pensions (DWP) benefits. Single claimants aged 25 and over can expect an immediate cash boost of approximately £295 this year, escalating to £760 by 2030—a period during which Andy Burnham hopes to remain in office.
Work and Pensions Secretary Pat McFadden emphasized the importance of these changes, stating, “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so.”
The enhanced benefits, coupled with investment in employment support, aim to create a welfare system that rewards work and provides claimants a pathway to improved futures. Additionally, these reforms are projected to save taxpayers £950 million by 2030/31, striking a balance between fairness for working individuals and fiscal responsibility.