From April, the Department for Work and Pensions (DWP) will significantly reduce the health top-up payment within Universal Credit (UC), affecting many new claimants. This change will see the weekly payment cut from £97 to just £50, except for those with the most severe or terminal conditions. As a result, some households could lose as much as £188 per month.
The health top-up is an additional payment on top of the standard UC allowance for individuals whose disabilities or medical conditions impact their ability to work. While current claimants will continue to receive the full amount and see their payments increase with inflation, new claimants will face a nearly 50% reduction, with their payments frozen and not adjusted for inflation in future years.
This adjustment follows a government attempt to cut the allowance entirely, which was resisted by Labour backbenchers, resulting in a partial reduction instead. Although the UC standard allowance is set to rise above inflation, critics argue that creating a two-tier system — where newcomers receive significantly less than existing claimants with similar conditions — is inherently unfair.
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Citizens Advice highlighted the impact of these changes, stating: “The UC bill cuts the health element of Universal Credit (UC health) by nearly 50%, to £50 a week for new claimants — except those with the most serious, life-long conditions — starting April 2026. Current claimants and new claimants meeting the severe conditions criteria will maintain the original rate, adjusted annually with inflation.”
This alteration has sparked controversy and concern over equity and support for disabled and medically vulnerable claimants under the Universal Credit system.