The Department for Work and Pensions (DWP) has confirmed that a reduction to the Universal Credit (UC) health element will come into effect on April 6, 2026. This announcement follows ongoing discussions and recommendations regarding the new Universal Credit Act 2025.
In response to calls from the Work and Pensions Select Committee for a delay in the UC health element reduction until an independent assessment is completed, the DWP affirmed the changes are part of broader reforms aimed at encouraging employment while supporting those with severe health conditions.
The DWP highlighted that the Universal Credit Act, which received Royal Assent on September 3, 2025, introduced the first sustained increase to the standard allowance above inflation, benefiting millions. Alongside this, the reduction in the health element is intended to address “perverse incentives” and encourage those able to work to re-enter employment.
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The department stated: “The new, lower UC health element will take effect on April 6, 2026. We will continue to review standard allowance rates.” It also emphasised support for the committee’s findings that the incapacity benefit system is broken and reiterated its commitment to reforms that balance support with encouraging employment.
Following concerns about changes to the Personal Independence Payment (PIP), the DWP removed clause 5 of the Bill and plans to pursue PIP reforms through the Timms Review, developed in collaboration with disabled people and experts.
The DWP is considering consultation feedback on further reforms, including measures to support people with health conditions and disabilities to try working with security and dignity. Detailed plans will be shared as developments progress.