Universal Credit Cut: New Claimants to Lose £188 Monthly from 2026
Universal Credit disability payments cut for new claimants

Major Changes to Disability Benefits Announced

Significant changes to Universal Credit will take effect from the new year, resulting in many new claimants with disabilities and medical conditions receiving substantially less financial support than current recipients.

The controversial reforms will see the health top-up payment, known as UC health, reduced by almost half for new applicants. Weekly payments will drop from £97 to £50, except for those with the most serious and life-long conditions.

Two-Tier System Creates Inequality

This creates what critics describe as an unfair two-tier system where existing claimants continue receiving higher payments while new applicants with identical conditions will get significantly less.

The changes mean new claimants could miss out on approximately £188 per month compared to what they would have received under the current rules. Furthermore, the reduced payment will then be frozen in future years and not increase with inflation.

Government Defends Reforms Amid Backlash

Ministers have pointed out that the Universal Credit standard allowance will rise above inflation next April, though this does not compensate for the substantial cut to disability top-ups.

The government was forced to abandon wider plans to cut Personal Independence Payments (PIP) following backbench fury and an independent review. Existing Universal Credit claimants were protected from these changes after Labour MPs rebelled against the original proposals.

Charity Citizens Advice commented: "It's welcome that the Government listened to the significant concerns raised by disabled people, charities, and MPs about the bill. However, the changes made to UC health are poorly designed and will cause harm to disabled people."

The new rules are scheduled to come into force from April 2026, forming part of the government's wider welfare reform agenda that has faced substantial criticism from disability advocates and opposition politicians.