The Department for Work and Pensions (DWP) has confirmed it will push ahead with controversial changes to Universal Credit, reducing the health element for new claimants from 6 April 2026. The decision comes despite strong recommendations from a cross-party committee of MPs to delay the move.
Government Rejects Calls for Delay and Impact Assessment
In a written response to the Work and Pensions Committee, the DWP dismissed calls to postpone the reduction until an independent assessment of its impact on disabled people could be completed. The committee, chaired by Labour MP Debbie Abrahams, had urged the government to reconsider, warning the change risked pushing more people with health conditions into poverty.
The DWP stated firmly that the new, lower Universal Credit health element will take effect as planned. It defended the reforms, which were legislated under the Universal Credit Act that received Royal Assent in September 2025, as necessary to correct "perverse incentives" in the welfare system.
What the Universal Credit Changes Mean in Practice
The reforms introduce a two-tier system from April 2026. A new claimant with a disability or health condition will receive £54 per week for the health element. This is half the amount received by someone with an identical condition who claimed before the deadline, who will continue to get £105 per week.
Debbie Abrahams, MP for Oldham East and Saddleworth, condemned this disparity as "not only discriminatory" but a policy that could "exacerbate" health conditions and push people further from employment. The DWP, however, argues the overall package encourages work.
The key elements of the Universal Credit Act include:
- A permanent, above-inflation increase to the standard allowance, estimated to be worth £725 by 2029/30 for a single adult aged 25 or over.
- Reducing the health top-up for new claims to £50 per week from April 2026 (figures in the response vary slightly between £50 and £54).
- Protecting all existing recipients of the higher health payment.
- Exempting those with the most severe, lifelong conditions from reassessment.
Broader Context and Fiscal Arguments
The government has previously highlighted that nearly four million households will see an income boost from the increased standard allowance. The DWP contends the rebalancing addresses a "fundamental imbalance" that it says drives dependency.
However, critics point to a recent analysis cited by the Work and Pensions Committee, which suggested the government could save up to £12.5 billion through reduced health claims and higher tax receipts by the end of the decade if it focused on better, personalised employment and health support instead.
A public consultation on new Codes of Practice, including for Eligibility Verification, remains open until the end of February 2026. The full government response to the committee's report is available on the GOV.UK website.
