The Department for Work and Pensions (DWP) has implemented a significant reduction in the health component of Universal Credit for new claimants, slashing payments by £2,552 a year. Under the rule change, those making new claims for the health element will receive £217.26 per month, approximately half the £429.80 currently paid to existing claimants.
Government's Stance on Welfare Reform
Social security and disability minister Sir Stephen Timms defended the shake-up, stating: "The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work." He added: "Laws coming into force today will change that, reducing projected expenditure on Universal Credit by almost £1 billion. 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 Raised by Disability Charities
Evan John, Policy Advisor at Sense, expressed deep concern over the changes: "Benefits are a lifeline for disabled people, and at a time of rising living costs, support should be strengthened, not reduced. It is deeply worrying the government appears to be laying the groundwork for cuts affecting disabled people aged 16 to 21, regardless of need." He warned: "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. 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."
Broader Welfare Cuts Under Review
The DWP remains under pressure to reduce the welfare bill, with the Labour government examining further changes. Among the benefits being targeted for adjustments is Personal Independence Payment (PIP). The government is conducting a thorough review of the disability benefit, known as the Timms Review.
