A report published this week by the Commons Work and Pensions Committee has called for cuts in the universal credit (UC) rate for new disabled claimants from April 2026 to be delayed, amid concerns they will push more people into poverty.
Under the Universal Credit Bill currently awaiting royal assent, the limited capability for work-related activity (LCWRA) or health element of UC will be reduced by almost half for new claimants, from £423.27 to £217.26.
The committee has recommended that the government consider further increases to the UC standard rate, above those already in the bill.
It has also asked the government to delay the reduction in UC health until it has carried out an independent and comprehensive assessment of the impact the change could have on disabled people
The committee also expressed concern that claimants with serious mental health conditions may not be covered by the serious conditions criteria.
Committee Chair Debbie Abrahams said,
“We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill); but there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.”
“The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them - will enter poverty by 2030 as a result of the reduction in support of the UC health premium.”
“We recommend delaying the cuts to the UC-health premium, especially given that other policies that such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.”
“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected. The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”
You can read a full copy of the report here.
