The Universal Credit and Personal Independence Payment Bill was published yesterday and is expected to be voted on for the first time in the Commons at the beginning of July. Below are the main provisions of the bill.
Personal Independence Payment
4-point rule
The Bill introduces the 4-point rule from a date yet to be announced, but intended to be November 2026.
From that date, new claimants will need to score:
- at least 8 points, including at least 4 points for a single daily living activity, to get an award of the standard rate of the daily living component;
- at least 12 points, including at least 4 points for a single daily living activity, to get an award of the enhanced rate of the daily living component.
Existing claimants will keep their current award until it is reviewed from November 2026, at which point they will be subject to the 4-point rule.
So, if you have a review before November 2026, you will be subject to the existing rules, not the 4-point rule.
There has been no indication from the DWP that they will bring forward anyone’s review dates. So, if your next review is not due for say, another four years, then that is when you will be subject to the 4-point rule.
Pension-age PIP
There is a clause in the bill which allows the DWP to make “different provision for persons of different ages” which may be used to exempt claimants who have reached pension age by November 2026. But there has been no official announcement about this and, at the moment, there are no different regulations for people of pension age.
Universal credit
Changes are being made to the rates of universal credit (UC) and, in addition, a severe conditions criteria category is being introduced. (Similar rules are being put in place for ESA claimants who have not been migrated to UC by April 2026)
UC standard rates
The standard rates of UC will increase each year by more than the rate of inflation. Using the 2026/27 rate as the baseline, the rate will increase by the rate of inflation plus 2.3% above inflation in 2026/27 up to 4.8% above inflation in 2029/30.
UC LCWRA rates
The LCWRA element rate will be frozen from 2026/27 to 2029/30.
The LCWRA element rates for the 2026/27 tax year will be:
- pre-2026 claimant £423.27
- severe conditions criteria claimant £423.27
- claimant who is terminally ill £423.27
- any other claimant with limited capability for work and work-related activity £217.26
This means that the LCWRA rate for new claimants from April 2026 will be almost halved.
The DWP has begun WCA reviews again. So existing LCWRA claimants may have their award reviewed before April 2026. But if you do not have a review before that date, or you maintain your LCWRA status when you are reviewed, then you will receive the pre-2026 claimant rate from April 2026.
Severe conditions criteria
From April 2026, a new category of LCWRA is being introduced. In order to be in the severe conditions criteria (SCC) group, a clamant has firstly to meet one of the LCWRA criteria. You can find a list of the criteria here.
In addition, all of the following criteria need to be met:
The level of function constantly applies to the claimant. So, conditions that vary in severity may not meet this requirement.
The claimant will have the condition for the rest of their life. So, conditions which might be cured by transplant/ surgery/treatments or conditions which might resolve may not meet this requirement.
It must have been diagnosed by an appropriately qualified health care professional in the course of the provision of NHS services. So, it would appear that a diagnosis via a private doctor or consultant would not be acceptable.
If a claimant meets all these criteria they will be classed as having a severe, lifelong health condition and will not be subject to routine reassessment.
What isn’t in the bill
The bill only covers the PIP 4-point rule and changes to the rates of UC, plus the severe conditions criteria, which were added at the last minute as a concession to Labour rebels.
It doesn’t, for example, deal with the abolition of the work capability assessment, the proposed new Unemployment Insurance or the plan to change the PIP assessment criteria. These and other Green Paper proposals will be the subject of legislation at a later date.
Downloads
You can download the bill from the Get file link on this page.
Or you can download the file directly from this link
