From Monday, thousands of new Universal Credit claimants in the UK will face a significant reduction in their monthly payments as the Department for Work and Pensions (DWP) enacts major changes to health-related benefits. The Limited Capability for Work-Related Activity (LCWRA) element, designed for individuals whose health conditions or disabilities restrict their ability to work, will see its payment structure overhauled.
Previously, claimants received over £420 per month for LCWRA, but under the new regulations, this amount will be split into two tiers. Most new applicants will receive approximately £217 per month—about £200 less—while only those meeting stricter eligibility criteria, such as severe or terminal conditions, will qualify for the higher payment of around £429.80 monthly.
These changes come at the start of the new tax year and will mainly affect new claimants, as existing recipients will generally maintain their current payment rates unless their circumstances change. The DWP will assess applicants using a revised work capability assessment to determine which tier they qualify for, focusing on how their condition impacts their everyday functioning.
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Advice organizations, including Citizens Advice, warn that the new system could have significant financial consequences for many claimants, with a greater likelihood that fresh applicants will receive the reduced payment unless they meet the stringent criteria for enhanced support.
Currently, approximately 1.8 million individuals claim the LCWRA element, but this revision sets a new threshold, placing many new claimants into the lower payment tier. The intent is to target support more narrowly, prioritizing those with the most severe health challenges.