Andy Burnham's government is set to push forward with significant changes to Universal Credit, following a law change initiated by former Prime Minister Sir Keir Starmer's administration. The reform aims to narrow the gap between payments for people on health-related benefits and those actively seeking work.
£760 Boost for Over-25s by End of Decade
Under the new rules, four million households on the standard rate of Universal Credit will receive the first sustained above-inflation increase to the Department for Work and Pensions (DWP) benefit. For a single person aged 25 or over, the boost is worth around £295 extra this year in cash terms, rising to £760 by the end of the decade. This comes as part of a broader investment of over £3.5 billion in employment support by 2030, which Sir Keir's team said would "ensure everyone affected by the changes to Universal Credit will be offered personalised help to access the skills they need to progress, move into good, secure jobs, and boost their living standards."
Government's Vision for Welfare Reform
Work and Pensions Secretary Pat McFadden confirmed the changes, stating: "The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing 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." McFadden added, "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."
Savings and Economic Impact
The reforms are projected to save taxpayers £950 million by 2030/31, delivering what the government describes as "fairness for working people and taxpayers alike." The changes come after Sir Keir Starmer resigned as Prime Minister and was replaced by Andy Burnham, the new Labour Party MP for Makerfield. Burnham is expected to remain in Number 10 Downing Street through the end of the decade, overseeing the implementation of these welfare reforms.
