The Universal Credit and Personal Independence Payment Bill was set to introduce the most extensive cuts to disability benefits in a generation, but following last minute changes due to political pressure, they are now not nearly as bad as feared. 

Well done to everyone who joined a campaign, wrote to their MP, signed a petition, or went to one of the protests - without that action disabled people and their families would be facing a much bleaker picture than they are today. It also shows what can be achieved when enough people raise their voices. 


Understanding the proposed changes

The worst change -  the new "4-Point Rule" for PIP daily living component - has been scrapped. It is no longer in the Bill at all. This is fantastic news for PIP claimants and those soon to claim. It is also fantastic news for carers as PIP is a crucial "gateway" benefit for Carer's Allowance and the UC carer's element. It also means the ‘double-whammy’ of losing your PIP and therefore (once the work capability assessment is scrapped) your entitlement to the Universal Credit health element won’t happen to anyone.  Entitlement to PIP also 'passports' recipients to other help - like council tax reductions, being exempt from non-dependent deductions, to name two - so these will stay. PHEW!

Cuts to the Universal Credit (UC) LCWRA element
Changes to the LCWRA element for existing claimants have been removed from the Bill. If you are an existing claimant, you will continue to receive the same amount of health element as before, and the amount will not be frozen.

New claimants (except those with less than 12 months to live) who claim after April 2026, will get only half the amount of the LCWRA element  and so will lose about £50 per week and then the rate will be frozen until 2029/30. However some of this loss will be offset by the increase of £30 to the standard rate of Universal Credit (as part of the Bill the Government committed to increasing the stabdard rate by 4.5% above inflation every year from 2026/27 to 2029/30). This cut to the LCWRA element is still deeply concerning as it means an average loss of £2,370 per year to new sick and disabled claimants.

The name of this extra amount will also be changed to the 'health element'.

Severe Disability Premium
There will be a Severe Disability Premium for those with 'severe and lifelong conditions' that effect them 'constantly' who receive the health element of Universal Credit, but few details have been given of what this is or how it would work. 
 

What the impact might be

Worsening health and well-being -Due to the last minute changes, now far fewer people will have their income significantly reduced. But many new claimants of Universal Credit after April 2026 may struggle to afford essentials like food and heating which can directly impact physical and mental health conditions and impede recovery. It will also impact their families, and undermine the goal of reducing child poverty. It may also undermine the Government’s stated employment goals - it is common sense that when you're struggling to afford basic necessities, finding and keeping a job becomes even harder.

Increased pressure on public services - As these new UC claimants are pushed into poverty and their health deteriorates, charities, local councils, schools, and the NHS will face greater demand for crisis support, homelessness assistance, social care, inpatient care and other health services. 

 

Are these changes definitely happening?

These changes are still passing through Parliament but are unlikely to be changed again. The first, second and third reading (when it is debated in the House of Commons and MPs vote on it) have happened. Next they have to go to the House of Lords. 

Thank you to everyone who wrote to the MP to ask them to oppose it.


So is that all that is changing?

For now, yes. The Government is likely to make further proposals after the Timms review makes its recommendations (likely in atumn 2026). Those proposals are likely to include changes to the PIP assessment system. 

The Government has now promised that the Timms review will be co-produced with disabled people but exactly what that means remains to be seen. 

In the Pathways to Work Green paper, the Government has proposed several changes, including:

  • Scrapping the work capability assessment and making the PIP assessment the gateway to the Universal Credit health element. 
  • Supporting those who lose access to PIP (this is very vague at present).
  • Increasing the number of face-to-face PIP assessments.
  • Reducing PIP assessment requirements for those with very severe conditions.
  • Raising the age at which people can claim PIP to 18.
  • Replacing New Style ESA and JSA with a single Unemployment Insurance benefit.
  • Establishing in law that trying to enter work will not lead to a reassessment of UC, PIP, or ESA.
  • Spending £1 billion on a ‘pathways to work’ support offer.
  • Delaying access to the UC health element until age 22 (this is very concerning as it is estimated that it would reduce the income of nearly 110,000 disabled young adults aged 16-21 years old by £5000 per year).

We will know more about which proposals will be taken forward when they publish the expected White paper - potentially in early autumn 2025. 

Any proposals that come out of the Timms review or the Pathways to Work White paper will require separate legislation to be passed by parliament.