From the new year, changes to Universal Credit (UC) will leave certain disabled claimants facing significant financial losses — up to £188 less per month.
The government plans to reduce the health top-up payment, which supports people with disabilities or medical conditions, nearly by half for new UC claimants. While the top-up currently stands at £97 per week, new claimants will receive only £50 weekly, unless they have the most severe and lifelong conditions. This cut represents one of the most controversial welfare reductions proposed in recent years.
Existing UC recipients, however, will be shielded from these cuts following pressure and opposition from Labour MPs, meaning they will continue to receive the original higher rate alongside inflation adjustments. The government has explained that the standard UC allowance will increase above inflation next April, but critics argue this does not compensate for the slashed health element.
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This shift is sparking outrage among campaigners and disability rights groups who criticize the creation of a two-tier system. People with the same disabilities will receive drastically different support based solely on when they claimed UC. Citizens Advice warns that while some improvements came from public scrutiny, the changes still risk causing significant hardship for disabled claimants.
Meanwhile, planned cuts to Personal Independence Payments (PIP) remain on hold due to ongoing independent reviews and political pushback.
In summary, the UC health top-up payment cut will affect new claimants from April 2026, slashing support nearly in half for most, while protecting existing claimants. This policy raises serious concerns about fairness and the financial wellbeing of disabled people relying on welfare support.