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New Universal Credit claimants could get less money under DWP rule change
Reach Daily Express | May 8, 2026 10:40 PM CST

Brits on low incomes could see a change to how much money they can get from the Goverment. People who are going to claim Universal Credit could get less going forward.

Sweeping new welfare regulations have come into effect, cutting the amount of money certain Universal Credit claimants receive if they are deemed unable to work due to illness or disability. Those making a new claim for the health element of Universal Credit will now receive £217.26 a month - roughly half the current rate of £429.80 paid to existing claimants.

However, as reported by the Daily Record, the change applies solely to new claims. Those already receiving the higher rate, along with individuals with the most severe or lifelong conditions and those nearing the end of life, will continue to receive the full amount.

Universal Credit is paid to those on low incomes, including people in employment, as well as those out of work or unable to work.

The Department for Work and Pensions (DWP) stated that the reforms are intended to eliminate what it described as "perverse incentives" within the system and assist more people into employment through tailored support.

Ministers also confirmed the changes will slash projected spending on Universal Credit by almost £1 billion.

The latest figures reveal that approximately 2.7 million people across Scotland, England and Wales are currently receiving Universal Credit with limited capability for work and work-related activity (LCWRA). Those within this group are not required to seek employment or participate in work-related activities.

Alongside the reduction in the health element for new claimants, the UK Government raised the standard Universal Credit allowance on April 6. This means nearly four million households will receive approximately £295 more over the course of this year, in what ministers say is designed to assist with the continuing cost of living pressures.

Social security and disability minister Sir Stephen Timms said: "The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work.

"Laws coming into force today will change that, reducing projected expenditure on Universal Credit by almost £1 billion.

"Simultaneously boosting the standard allowance and investing £3.5 billion in employment support means we're creating a welfare system that backs people to work and helps them build a better future."

Evan John, Policy Advisor at Sense, said: "Benefits are a lifeline for disabled people, and at a time of rising living costs, support should be strengthened, not reduced.

"It is deeply worrying the government appears to be laying the groundwork for cuts affecting disabled people aged 16 to 21, regardless of need. This could have a devastating impact on young people with complex conditions who are unable to work.

"The support, worth £2,600 a year, helps cover basic living costs and allows some to prepare for employment. Scrapping it risks pushing young disabled people further into poverty and isolation, increasing the barriers they already face.

"The government should rule out further cuts and instead invest in support to help disabled people find and stay in work." The reforms will apply throughout Scotland, England and Wales, as Universal Credit falls under the jurisdiction of the UK Government, though certain disability benefits are administered separately in Scotland.

Proposals to overhaul Personal Independence Payment (PIP) have been put on hold, with ministers opting instead to launch a broader review into how the benefit operates.

The review is anticipated to report back to Work and Pensions Secretary Pat McFadden this Autumn, with any potential changes unlikely to take effect until after that process has been completed.


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