The UK government has announced significant reforms to the welfare benefits system, with major changes coming to Universal Credit (UC) and Personal Independence Payment (PIP) from 2026.
Designed to promote work participation and ease strain on the public budget, these changes have raised concerns about how they might impact vulnerable groups, especially those living with long-term health conditions and disabilities.
Whether you’re a current claimant, considering applying, or supporting someone who relies on these benefits, it’s crucial to know what’s ahead and how to prepare.
New Changes
The Department for Work and Pensions (DWP) is adjusting both the financial support offered through Universal Credit and tightening eligibility for PIP. Here’s a clear breakdown of what’s changing:
| Aspect | Details |
|---|---|
| Universal Credit Health Element | Reduced from £97 to £50 per week for new claims from April 2026; frozen until 2029/30 |
| Standard Allowance Increase | Gradually rises from £92 in 2025/26 to £106 by 2029/30 |
| PIP Eligibility Criteria | From November 2026, claimants must score 4+ points on one daily living activity |
| Estimated Financial Impact | 3.2 million households could lose an average of £1,730 a year |
| Poverty Projection | Up to 250,000 people could fall into relative poverty |
| Resource for Claimants | GOV.UK official page |
Universal Credit
Currently, people receiving Universal Credit with Limited Capability for Work and Work-Related Activity (LCWRA) get around £97 a week in extra support. From April 2026, new claimants will only receive £50 per week. That £50 amount will remain frozen until at least 2029/30.
Those already on Universal Credit before the reform keep their £97 payment, but this too will be frozen, meaning it will lose value over time as the cost of living rises.
Standard Allowance
To soften the blow of cutting the health element, the government will gradually increase the Universal Credit standard allowance. Starting at £92 per week in 2025/26, it’s set to reach £106 by 2029/30.
This increase is intended to improve basic benefit rates and encourage people back into work, though many argue it won’t fully cover the gap left by the reduced health element.
Stricter PIP Assessments
Personal Independence Payment (PIP) is another area set for reform. From November 2026, claimants must score at least 4 points on a single daily living activity, like preparing meals or managing medication, to qualify for financial help.
Currently, applicants qualify based on a cumulative score from multiple activities. This new rule tightens eligibility and could mean many people, particularly those with fluctuating or less visible conditions, might lose their entitlement.
Reforms
If you already receive Universal Credit with the LCWRA element or PIP, your current payment will continue until your next reassessment. New applicants from April 2026 (for UC) and November 2026 (for PIP) will be subject to the new, stricter rules.
Estimates suggest up to 3.2 million households could lose about £1,730 annually, with around 250,000 people potentially falling into poverty as a result.
What You Can Do Now
While the reforms won’t fully come into effect until 2026, there are steps you can take now to prepare:
- Review your current benefit entitlements and know how they’re calculated.
- If you might need to claim, consider doing so before April 2026 for Universal Credit or November 2026 for PIP.
- Keep your medical records, GP letters, and specialist reports up to date for future assessments.
- Seek help from organisations like Citizens Advice, Scope, or Disability Rights UK for advice and support tailored to your situation.
Staying informed and organised is the best way to protect your financial wellbeing ahead of these changes.
FAQs
When do the Universal Credit changes start?
From April 2026 for new claimants.
How will PIP eligibility rules change?
You must score 4+ points on a single activity from November 2026.
Will current PIP claimants lose their payments?
No, current awards continue until reassessment after November 2026.
How much will the UC health element drop to?
It will reduce from £97 to £50 per week for new claims.
Where can I check official reform details?
Visit the GOV.UK benefits reform section for updates.
