The Department for Work and Pensions (DWP) has implemented a significant reduction in Universal Credit payments for new claimants deemed unable to work due to illness or disability. Under the new rates, those making a fresh claim for the health element of Universal Credit will receive £217.26 per month—approximately half the current rate of £429.80 paid to existing claimants.
This change applies exclusively to new claims. Individuals already receiving the higher rate, as well as those with the most severe or lifelong conditions and those nearing the end of life, will continue to receive the full amount. The DWP estimates this reform will reduce projected expenditure on Universal Credit by nearly £1 billion.
Government Justification
Labour Party social security and disability minister Sir Stephen Timms defended the changes, stating: "The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work. Laws coming into force today will change that, reducing projected expenditure on Universal Credit by almost £1 billion."
He added: "Simultaneously boosting the standard allowance and investing £3.5 billion in employment support means we're creating a welfare system that backs people to work and helps them build a better future."
Concerns from Disability Charities
Evan John, Policy Advisor at Sense, expressed deep concern: "Benefits are a lifeline for disabled people, and at a time of rising living costs, support should be strengthened, not reduced." He highlighted worries about potential further cuts affecting disabled people aged 16 to 21, regardless of need: "This could have a devastating impact on young people with complex conditions who are unable to work."
The support, worth £2,600 a year, helps cover basic living costs and allows some to prepare for employment. John warned: "Scrapping it risks pushing young disabled people further into poverty and isolation, increasing the barriers they already face. The government should rule out further cuts and instead invest in support to help disabled people find and stay in work."
