The Department for Work and Pensions (DWP) has confirmed it will proceed with a significant reduction to the Universal Credit health element, a move that will see financial support for many new claimants with disabilities or health conditions almost halved.
What the Universal Credit changes mean
From April 6, 2026, the health top-up payment within Universal Credit will be cut from £97 per week to just £50 per week for most new claimants. This represents a reduction of nearly 50%.
The change will only apply to new applicants. Existing claimants will not see their payments reduced, a concession made after pressure from Labour rebels forced the government to modify its original, broader welfare reduction plans.
This creates a two-tier system where individuals with identical disabilities or health conditions will receive different levels of financial support, solely based on when they made their claim.
Political reaction and impact assessment
The decision has drawn sharp criticism. A cross-party group of MPs had urged the government to delay the cut until an independent and comprehensive assessment of its impact on disabled people could be completed.
Despite these calls, the DWP, in a written response, confirmed the changes would proceed as scheduled. The department stated the legislation, the Universal Credit Act which received Royal Assent on September 3, 2025, paved the way for this reform.
The government argues the change, coupled with an above-inflation increase to the Universal Credit standard allowance, is designed to remove "perverse incentives" in the system. Ministers claim it will better encourage those who can work to enter or return to employment.
Who is affected and the wider context
The reduction will impact new claimants who require the health element due to a disability or health condition. An exception will be made for those with the most serious, life-limiting conditions, who will continue to receive the higher rate.
While the health top-up is being cut, the DWP highlights that millions will benefit from the sustained, above-inflation rise to the standard allowance. An updated Impact Assessment for the bill was published in July 2025.
Nevertheless, the move signifies a tightening of the welfare system for new claimants with health challenges, setting the stage for continued debate over the balance between support and work incentives in the UK's benefits framework.
