The Department for Work and Pensions (DWP) has revealed plans to reduce Universal Credit (UC) payments, resulting in a loss of £2,652 per year for claimants. These cuts are scheduled to take effect from April 6, 2026, under the incoming Labour Party government, stirring strong opposition from various groups.
According to the Department’s written response to parliamentary committees, “The new, lower UC health element will take effect on April 6, 2026,” with a commitment to “keep standard allowance rates under review.” The changes are authorized by the Universal Credit Act, which gained Royal Assent on September 3, 2025.
Under the revised system, individuals who develop a disability or health condition after April 2026 will receive £54 per week in health-related UC support. This amount is significantly lower than the £105 per week available to claimants with similar conditions who applied before the new rules come into force, equating to a yearly shortfall of £2,652.
READ MORE: DWP Boosts State Pensions by £575 but 453,000 Expatriates Left Out
READ MORE: 69,000 UK Households Face Steep Mortgage Increase of £321 Monthly in 2026
Debbie Abrahams, Chair of the committee, expressed serious concerns: “Government analysis from March shows that approximately 50,000 people developing health conditions or disabilities from next April—and those dependent on them—will be pushed into poverty by 2030 due to the reduction of the UC health premium. We urge delaying these cuts, especially since additional NHS capacity, enhanced employment support, and labor market adjustments have not yet been implemented.”
The DWP defended the policy, stating the cuts are necessary to correct “perverse incentives” within the UC system. They noted, “The Universal Credit Act, passed in September 2025, introduced the first sustained, above-inflation increase to the standard allowance, benefiting millions of people. The concurrent reduction in the UC health element for new claimants aims to encourage those who are able to work to enter or return to employment.”
An updated Impact Assessment for the legislation was published in July 2025, reaffirming the policy changes and their scheduled implementation date.