The Department for Work and Pensions (DWP) has confirmed a significant reduction in Universal Credit payments for certain claimants under the limited capacity for work and work-related activity (LCWRA) component. From April 6, 2026, LCWRA payments will be divided into two distinct rates, resulting in a £53 weekly shortfall for many new recipients.
The new structure sets the higher LCWRA rate at £429.80 per month and the lower rate at £217.26 per month—a £212 monthly difference. The lower rate will apply primarily to new claimants who do not meet specific criteria and, concerningly, this amount will remain frozen until April 2030, effectively eroding its value further over time.
Those eligible for the higher rate include current LCWRA recipients as of April 6, 2026, and certain protected groups. The higher rate will continue to be uprated annually in line with inflation and will not be frozen.
READ MORE: DWP Claimants Concerned Over Rejection Surge Following Access to Work Overhaul
READ MORE: New DWP Proposal: £30 Weekly Supplement for Low-Income State Pensioners
To qualify for the lower rate, claimants must declare a health condition or disability on or after April 6, 2026. Additional conditions for receiving the lower rate include not having a severe, lifelong health condition, not being near the end of life, and, if applicable, having a partner who is not entitled to the higher LCWRA amount.
Protected groups entitled to the higher rate comprise existing LCWRA recipients before the deadline, individuals nearing the end of life who meet ‘special rules,’ and those who fulfill ‘severe conditions criteria.’
To meet the ‘severe conditions criteria,’ claimants must have undergone a work capability assessment confirming their limited capability for work-related activity. This limitation must stem from a diagnosed specific bodily disease, disablement, or mental illness expected to persist for life. Such diagnoses must be made by qualified healthcare professionals.
Disability Rights UK highlights that those currently receiving the higher LCWRA rate by the April 2026 cutoff will retain this rate as long as their assessment status continues to reflect a limited capability for work-related activity.
This overhaul represents a challenging financial setback for many vulnerable Universal Credit claimants, with long-term implications due to the freezing of the lower rate.