Disabled people across the UK are being warned about a significant benefit reduction as new Universal Credit reforms begin this week.
Starting Monday the health element of Universal Credit for new claimants will be cut in half from around £100 a week to just £50. This means a loss of £2600 per year for some of the most vulnerable people in society.
The change only applies to new applicants but charities say it could signal deeper cuts ahead.
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What’s Changing and Who Is Affected
Under the new rules new claimants will receive £217.26 a month instead of £429.80.
Existing claimants will keep the higher rate.
The cut affects those assessed as having limited capability for work and work-related activity.
This group includes people with serious disabilities or long-term health conditions who are not expected to work.
There are also concerns that anyone who has to stop their claim and reapply will be hit by this.
The government says the reforms will save £1 billion and help move more people into employment.
Charities Sound Alarm
Disability charities have reacted with deep concern & warn the cuts come at the worst possible time.
Evan John from Sense said benefits are a lifeline for disabled people.
At a time of increased anxiety about rising energy bills and other essentials support should be strengthened rather than reduced.
He also warned the government may be planning further cuts.
It is deeply worrying that the government appears to be laying the groundwork for future benefits cuts for disabled people aged 16 to 21 regardless of need.
What Happens Next
A wider review of disability benefits including Personal Independence Payment is ongoing. Final recommendations are expected by autumn 2026 and further changes could still be introduced. You can have your say by getting in touch with the review team. You can respond online or email [email protected] or write to The Timms Review at the Department for Work and Pensions in London.
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Young Disabled People Could Be Hit Next
One of the most controversial proposals is the potential removal of the health element entirely for disabled people aged 16 to 21.
Sense says this could have a devastating impact especially for those with complex needs.
Scrapping this benefit will not help more young disabled people find work and instead risks pushing them further into poverty and isolation.
Cuts Will Make Work Harder
Other organisations working directly with disabled people agree the reforms could backfire.
A spokesperson from disability charity Scope said these cuts to universal credit will only make it harder for disabled people to get into work.
The health element of universal credit only exists because it’s more expensive & often takes longer for disabled people to get into work.
Government Defends Changes
Ministers argue the current system discourages employment and needs reform.
Social Security Minister Sir Stephen Timms said the welfare system we inherited has for too long locked disabled people & people with long-term conditions out of work.
He added that they are creating a welfare system that backs people to work and helps them build a better future.
The government says it is also increasing the standard Universal Credit allowance and providing £295 extra this year to nearly 4 million households.
They are also investing £3.5 billion in employment support.
Latest figures show 2.7 million people are currently in the limited capability for work and work-related activity category across Great Britain.
Many are not required to attend work-related interviews due to the severity of their conditions.
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