New welfare rules that reduce the health element of Universal Credit for new claimants came into force on April 6. Under the change, individuals making a new claim for the health component will receive £217.26 per month, roughly half the current rate of £429.80 paid to existing claimants.
The reduction applies only to new claims. Those already receiving the higher rate, individuals with severe or lifelong conditions, and people nearing the end of life will continue to receive the full amount. The Department for Work and Pensions (DWP) stated the reforms aim to remove 'perverse incentives' and help more people move into employment with tailored support.
Ministers confirmed the changes will reduce projected spending on Universal Credit by nearly £1 billion. Alongside the cut, the government is increasing the standard allowance of Universal Credit, meaning nearly four million households will receive around £295 more over the year to help with cost of living pressures.
Social security and disability minister Sir Stephen Timms said: 'The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work. Laws coming into force today will change that.' He added that boosting the standard allowance and investing £3.5 billion in employment support creates a system that 'backs people to work'.
However, disability charities have criticised the move. Evan John, Policy Advisor at Sense, said: 'Benefits are a lifeline for disabled people, and at a time of rising living costs, support should be strengthened, not reduced.' He warned that further cuts affecting disabled people aged 16 to 21 could have a 'devastating impact' on young people with complex conditions.
The changes apply across Scotland, England, and Wales. Plans to reform Personal Independence Payment (PIP) have been delayed, with a wider review expected to report later this year.
