The Department for Work and Pensions (DWP) has announced a significant reduction in Universal Credit payments, with thousands of claimants set to see their monthly income slashed by more than £200 from April. Under the new rules, the health element of Universal Credit for new claimants will be cut from £429.80 to £217.26 per month, a decrease of £212.54.
Government Aims to Address Work Disincentives
The Labour Party government, which unveiled the changes, stated that the overhaul is designed to tackle what it describes as "perverse incentives that discourage work and trap people on long-term benefits." This move forms part of a broader shake-up of the welfare system intended to refocus support towards employment.
Work and Pensions Secretary Comments on Reforms
Work and Pensions Secretary Pat McFadden emphasised the government's objectives, saying, "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." He 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."
Understanding Universal Credit and Health Conditions
Universal Credit is a monthly payment provided to assist with living costs for individuals on a low income or out of work. Claimants may receive an additional amount if they have a health condition or disability that limits their capacity to work, which the DWP terms their 'capability to work.'
When applying for Universal Credit, individuals must report any health conditions or disabilities affecting their ability to work. This assessment determines whether they require support in employment, need to find suitable work, or are temporarily or long-term unable to work. Claimants can still engage in work if they feel capable or find appropriate opportunities.
Required Health Information for Claims
To qualify for the health element, claimants must provide detailed information about their medical situation, including:
- Current medical treatments being received
- Hospital admissions or expected admissions
- Pregnancy status
This documentation is crucial for accurately assessing eligibility and ensuring that support is directed to those with genuine needs, aligning with the government's goal of creating a fairer and more effective welfare framework.
