Millions of Brits claiming Universal Credit are set to receive higher payments as part of new Government proposals. However, the same law will involve cuts to key health-related benefits, which has caused concerns. The Universal Credit and Personal Independence Payment Bill, published on Wednesday, June 18, noted changes that will increase the standard Universal Credit allowance above inflation for four years, starting from 2026.
By the end of the period, eligible claimants could recieve an additional £725 per year, equivalent to around £250 more than if payments only increased with inflation. It is expected that nearly four million households will benefit from the payment increases.
Single claimants aged 25 and over, will see their rates increasing by:
- 2.3% in 2026 to 2027
- 3.1% in 2027 to 2028
- 4.0% in 2028 to 2029
- 4.8% in 2029 to 2030
However, the proposal also freezes and reduces the Limited Capability for Work and Work-Related Activity (LCWRA) component, which aids those who cannot work as a result of severe health conditions.
The LCWRA element will be frozen at £97 per week from April 2026, and will not increase with inflation.
Therefore, new claimants will receive only £50 per week. The cutback will impact those with terminal illnesses, cancer patients, and others with long-term health conditions.
The Government has confirmed that over 200,000 people with severe or permanently disabling conditions will be placed into a new category exempt from reassessment. Future claimants may see significantly reduced financial support, reports GB News.
The proposed changes have faced criticism. Disability charities warn that it could leave more than three million people worse off, with some people losing out on up to £12,000 annually.
James Watson-O’Neill, chief executive of disability charity Sense, said he was “especially alarmed” by plans to cut the Universal Credit uplift “for those with the greatest barriers to work”.
“Many of the disabled people and families we support have told us they’re frightened, uncertain how they’ll afford food, heating, other basic needs without this vital support,” he added.
Scotland’s Social Justice Secretary Shirley-Anne Somerville stated: “The UK government’s proposed reforms will be hugely damaging to those who rely on social security support, particulary during the ongoing cost of living crisis.”
She confirmed that Scotland would not reduce its adult disability payment, urging Westminster to “protect the social security safety system, rather than dismantling it.”
The bill is anticipated to face opposition in Parliament, with reports suggesting that up to 170 Labour MPs could vote against it later this month.