The Department for Work and Pensions has confirmed when changes to Universal Credit payments will take effect, following new legislation laid in Parliament as part of wider welfare reforms.
The measures are intended to rebalance the benefits system, narrow payment differences, and encourage more people into work, while maintaining protections for those with the most serious health conditions.
The reforms form part of a broader strategy that includes increased employment support funding and above-inflation rises to standard Universal Credit payments.
Changes
The Universal Credit legislation introduced this week sets out changes that will begin in April. One of the most significant adjustments affects the health-related element of Universal Credit for new claimants.
From April, new claimants who qualify for the health element of Universal Credit will receive a lower monthly rate of £217.26, compared with the current higher rate of £429.80. The government says this change is aimed at addressing what it describes as incentives that discourage people from moving closer to work.
Existing Universal Credit claimants receiving the health element will not be affected. Those with severe or lifelong conditions, people nearing the end of life, and all current health-related claimants will continue to receive the higher rate.
Rationale
The Labour government has argued that the current system results in people receiving Universal Credit for health reasons being paid more than twice as much as single people actively seeking work, without sufficient support to help them re-enter employment.
Ministers say the reforms are designed to balance financial support with stronger employment assistance, rather than reducing help for those who are unable to work.
Support
Alongside the payment changes, the government has committed £3.5 billion by the end of the decade for tailored employment support. This includes funding for 1,000 dedicated work coaches who will offer voluntary assistance to tens of thousands of people who are sick or disabled.
Additional programmes are also being expanded. WorkWell is being rolled out across England and is expected to support up to 250,000 people. The Connect to Work scheme will provide personalised employment support to around 300,000 people over the next five years.
Increase
The DWP has also confirmed that Universal Credit payments will rise this year. Benefits linked directly to inflation will increase by 3.8 percent from April, while other elements will rise by 2.3 percent.
As part of the changes, almost four million households receiving the standard rate of Universal Credit will see what the government describes as the first sustained above-inflation increase to the benefit.
For a single person aged 25 or over, this is expected to be worth around £295 more in cash terms this year, rising to approximately £760 by the end of the decade.
Context
Universal Credit is a means-tested benefit, and the amount a claimant receives depends on income, savings, and personal circumstances. The Universal Credit Act 2025 sets out further reforms that will rebalance payment rates from April 2026.
With an estimated 2.8 million people currently out of work due to long-term sickness, ministers say these measures are central to the government’s wider Plan for Change, aimed at reducing barriers to employment and increasing workforce participation.
Outlook
Work and Pensions Secretary Pat McFadden said the reforms are intended to create a system that rewards work while continuing to protect those who cannot work. He added that boosting the standard allowance and expanding employment support would help people move towards greater financial security.
Further details on how the changes will affect individual claimants are expected to be published by the DWP ahead of implementation.
FAQs
When will Universal Credit payment changes take effect?
Most changes will begin from April.
Will existing health claimants lose money?
No, existing claimants will keep the higher rate.
What is the new health element rate?
New claimants will receive £217.26 per month.
Are Universal Credit payments increasing this year?
Yes, payments will rise by up to 3.8 percent.
