From April 2026, the health element of Universal Credit (UC) will be significantly reduced for new claimants who have health conditions. This decision is part of a wider, controversial set of measures planned by the Government aimed at cutting disability-related benefits.
The health top-up payment for new claimants will fall from £97 a week to just £50, except for those with the most severe and life-long health conditions. After this reduction, the payment will remain frozen and not increase in line with inflation, deepening financial challenges for disabled individuals. Existing claimants and those meeting the new severe conditions criteria will continue to receive the original rate, which will be uprated according to the Consumer Price Index (CPI).
These changes come despite strong opposition from Labour MPs and disability campaigners. While the Government has shelved plans to tighten eligibility for Personal Independence Payments (PIP) following an independent review, the cut to the UC health element for new claimants is set to proceed as scheduled.
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Although the standard Universal Credit allowance is planned to rise above inflation starting next April, this increase will not offset the impact of the cuts to the health element. Critics argue that these changes create a two-tier system where new claimants are disadvantaged compared to existing recipients, potentially undermining support for those with similar health needs.
Citizens Advice and advocacy groups have voiced concern, stating that the UC health cut is poorly designed and will cause significant harm to disabled individuals who rely on this support. This development highlights the ongoing struggle over how best to balance budgetary constraints with the needs of vulnerable people.