Universal Credit Health Element Reduced for New Claimants in Work Push
The Department for Work and Pensions (DWP) has confirmed that from April, new Universal Credit claimants applying on health grounds will receive a lower monthly payment under welfare reforms designed to encourage more people into work. Legislation introducing these changes was laid before Parliament on Monday, February 9.
Addressing 'Perverse Incentives' in the Benefits System
Ministers stated that the current system creates 'perverse incentives' by paying individuals on health-related Universal Credit more than twice as much as a single jobseeker, while providing limited support to help them transition into employment. Under the reforms, new claimants who qualify for the Universal Credit health element will receive £217.26 per month instead of the current higher rate of £429.80.
However, exceptions will be made for people with the most severe and lifelong conditions, those nearing the end of life, and all existing Universal Credit health claimants, who will continue to receive the higher rate.
Investment in Jobs and Skills Programmes
The Government emphasised that these measures are part of a broader plan to 'rebalance the benefits system' while expanding employment support. More than £3.5 billion will be invested in jobs and skills programmes by the end of the decade to offer personalised assistance for those affected by these changes.
Ministers assert that this investment will help claimants access training, develop new skills, and secure employment, thereby boosting the workforce and improving living standards.
Increased Standard Allowance for Universal Credit Recipients
Alongside the reforms, nearly four million households on the standard rate of Universal Credit will receive what the Government describes as the first sustained above-inflation increase to the benefit. For a single person aged 25 or over, this will be worth approximately £295 extra in cash terms this year, rising to about £760 by the end of the decade.
Work and Pensions Secretary Pat McFadden commented: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so. By boosting the standard allowance and investing in proper employment support, we're building a welfare system that rewards work and offers people a route to a better future.”
Enhanced Support Through Pathways to Work Advisers
The DWP also confirmed that over 1,000 Pathways to Work advisers are now stationed in Jobcentres across Scotland, England, and Wales, providing personalised support to individuals receiving health-related benefits who currently have no requirement to work. The department reported that 'tens of thousands' of claimants have already utilised this assistance, with around 65,000 people expected to benefit during the current financial year.
Ministers added that they remain on track to deliver personalised employment support to everyone affected by the Universal Credit reforms.
Broader Programmes for Health Conditions and Disabilities
The new measures complement wider initiatives aimed at supporting people with health conditions and disabilities into work. WorkWell is being rolled out across England and is anticipated to assist up to 250,000 people, while Connect to Work will offer personalised help to 300,000 individuals over the next five years.
According to the DWP, with 2.8 million people currently out of work due to long-term sickness, these measures are central to the Government’s Plan for Change to dismantle barriers to opportunity and get Britain working. By supporting more people into employment and reducing the health element for new claimants, the reforms are projected to save taxpayers £950 million by 2030/31, promoting fairness for working people and taxpayers alike.
Concerns Raised by Disability Organisations
Disability organisations have expressed worries about the impact of these changes on vulnerable claimants. Warren Kirwan, media manager at disability equality charity Scope, stated: “These cuts to universal credit will only make it harder for disabled people to get into work. The health element of universal credit only exists because it's more expensive and often takes longer for disabled people to get into work. We urge the Government to properly listen and engage with disabled people, to build a welfare system that supports disabled people and addresses the extra costs they face.”
