Starting in April 2025, major changes are coming to Universal Credit in the UK. These new rules aim to boost employment and reduce long-term benefit reliance—but not everyone will benefit. In fact, some claimants could see their payments reduced or frozen, particularly those with health conditions.
From reduced health payments to stricter PIP criteria and the removal of the Work Capability Assessment, these reforms will impact over 800,000 people. Let’s break down the changes, who’s affected, and how to prepare.
Table of Contents
Overview
These Universal Credit changes are rolling out in phases starting April 2025 and continuing into 2026. The government says it’s a modernisation plan. Critics call it a cost-cutting move that risks leaving vulnerable people behind.
| Topic | Details |
|---|---|
| Implementation Date | April 2025 (some in 2026) |
| UC Standard Allowance | £92/week (2024) rising to £106/week by 2029 |
| Health Element (new claims) | Cut from £97/week to £50/week (frozen) |
| Health Element (existing) | Retained at £97/week but frozen till 2029 |
| Work Capability Assessment | Phased out by 2028 |
| PIP Eligibility | Stricter from November 2026 |
| Help to Save | Expanded from April 6, 2025 |
| Debt Deduction Cap | Lowered from 25% to 15% of UC |
Allowance
Starting in 2026, the standard Universal Credit allowance for single adults over 25 will rise from £92 to £106 per week by 2029. It won’t be a one-time jump but a gradual increase. This means any real boost will likely be eaten up by inflation over time.
Health
One of the most controversial changes is the reduction in health-related payments.
If you’re a new claimant after April 2026, the health element will drop to £50 a week—down from £97. This new rate will also be frozen for the foreseeable future.
If you’re already claiming before April 2026, your £97 per week payment is safe for now, but it too is being frozen until at least 2029, meaning its value will slowly decline.
Assessment
The Work Capability Assessment, which determines whether someone can receive extra support due to health conditions, will be fully phased out by 2028.
Eligibility will instead rely more heavily on Personal Independence Payment assessments. If you aren’t already on PIP, getting extra support could become much harder.
The government says this will reduce bureaucracy, but critics warn it may block access to essential support for people with invisible or fluctuating conditions.
Work
A new right to try work policy means if you attempt a job and it doesn’t work out due to your condition, you won’t be penalized or reassessed immediately. This is designed to reduce fear among people who want to return to work gradually.
PIP
From November 2026, the rules around PIP are changing too.
To qualify for the daily living component, you’ll need to score at least four points in a single activity. Currently, people can qualify by scoring lower points across multiple tasks.
This change could affect up to 800,000 current and future claimants. It’s especially tough for those whose conditions don’t fit neatly into one activity score.
Saving
From April 6, 2025, the Help to Save scheme is expanding. This program encourages people on low incomes to build savings with a 50 percent bonus from the government.
You can save up to £50 per month, earning a bonus of up to £1,200 over four years. To qualify, you must have earned at least £1 in your last UC assessment period.
Debt
From 2025, if you’re repaying debts through UC deductions, the max amount that can be taken will be reduced from 25 percent to 15 percent of your standard allowance.
This change should ease financial pressure on over 1 million households struggling with repayments.
Affected
These changes will hit different groups in different ways:
- New claimants, especially those with mental health conditions or disabilities, will face reduced health payments and stricter assessments
- Current claimants may not see a reduction, but frozen payments will lose value over time
- PIP applicants who don’t meet the new point threshold may lose some or all support
Prepare
Don’t wait to react—prepare now. Here are three smart steps to take:
- Check your eligibility
Use free online benefit calculators like Entitledto or Turn2us - Get help early
Reach out to Citizens Advice, Scope, your local job centre, or council - Stay informed
Sign up for alerts or check official sites like GOV.UK, Rightsnet, or MoneySavingExpert
These changes are big. Planning now can help protect your income in the future.
FAQs
When do Universal Credit changes begin?
Most reforms start in April 2025, with more by April 2026.
What happens to the health element for new claims?
It drops from £97/week to £50/week starting April 2026.
Is the Work Capability Assessment ending?
Yes, it will be phased out completely by 2028.
Will existing health payments be cut?
No, but they will be frozen and lose value over time.
How do I prepare for these changes?
Use benefit calculators and seek advice from Citizens Advice or Scope.
