The Department for Work and Pensions has confirmed controversial changes to Universal Credit that will significantly reduce financial support for new claimants with health conditions.
What's changing for disability benefits
From April 2026, new Universal Credit claimants requiring support for health conditions will face a nearly 50% reduction in their health top-up payment. The weekly amount will drop from £97 to £50 for most new applicants, creating what campaigners describe as a "two-tier" disability benefit system.
Existing claimants will not be affected by these changes, following significant pressure from Labour MPs and disability charities that forced the government to shelve most of its planned welfare cuts. However, ministers have pushed ahead with reductions targeting new applicants.
Frozen payments and limited protections
The reduced health element will then remain frozen in future years and will not rise with inflation, effectively diminishing its value over time. The only exemption applies to individuals with the most serious and life-long conditions, who will continue receiving the original rate.
Citizens Advice explained the discrepancy: "For current claimants, and new claimants who meet the new severe conditions criteria, UC health will be maintained at the original rate and uprated depending on the Consumer Price Index (CPI)."
Broader welfare changes on hold
While the Universal Credit health top-up faces cuts, the standard allowance will increase above inflation from next April. Meanwhile, wider plans to reduce Personal Independence Payments (PIP) have been postponed indefinitely pending an independent review.
Campaign groups have expressed serious concerns about the impact of these changes. Citizens Advice stated: "The changes made to UC health are poorly designed and will cause harm to disabled people," despite acknowledging the government had listened to some concerns.
The confirmation of these cuts represents the first phase of government efforts to reduce the welfare bill, though ministers face ongoing criticism for targeting support for people with disabilities and health conditions.
