The Department for Work and Pensions (DWP) is set to introduce four major reforms to Universal Credit (UC) from April 2026 through new legislation aimed at “rebalancing” the system.
These shifts are designed to enhance fairness, encourage work, and protect the most vulnerable. Here’s everything you need to know.
Snapshot Table: Four Universal Credit Changes in 2026
| Change | Detail |
|---|---|
| 1. Standard Allowance Increase | The UC standard allowance will rise above inflation over the next four years—worth an estimated £725 extra by 2029/30 for a single adult aged 25+—resulting in around £106 per week by 2029/30. |
| 2. Health Element Reduction for New Claims | The health top-up (LCWRA) for new UC claimants will be cut to about £50 per week (≈ £217/month) from April 2026 and then frozen. |
| 3. Protection for Existing & Severely Disabled | Current health element recipients, those with Severe Conditions Criteria, and those under End-of-Life rules will continue to receive the higher payment, adjusted annually at least to match inflation. |
| 4. Exemption from Reassessments | Around 200,000 individuals with the most severe, lifelong conditions will be exempt from reassessments, and all affected by the health element changes will receive a ’Right to Try’—allowing them to attempt work-support without instant reassessment. |
Detailed Breakdown of the Four Reforms
1. Above-Inflation Standard Allowance Increase
For the first time since 1980, the UC standard allowance is being raised above inflation, offering a cash boost to claimants. A single person aged 25 or over could gain around £725 annually by 2029/30, with weekly rates reaching about £106. This applies to approximately 6.7 million households. The aim is to reduce poverty and promote financial adequacy.
2. Reduced Health Element for New Claimants
Beginning April 2026, new UC claimants eligible for the LCWRA health top-up will receive only £50 weekly, roughly half the current rate. This cut aims to rebalance incentives and encourage movement into work by narrowing the gap between support for standard and health-related needs.
3. Protection for Existing and Severest Cases
Individuals already receiving the UC health element, those with Severe Conditions Criteria, or near end-of-life under SREL, will be shielded from the cuts. Their combined standard allowance and health element will continue to rise annually with at least inflation, safeguarding their support.
4. Reassessment Exemptions & ‘Right to Try’
Those with severe, lifelong health conditions (about 200,000 people) will be exempt from routine UC reassessments, giving stability.
Additionally, the “Right to Try” policy allows disabled or health-challenged individuals to attempt work without the fear of losing benefits immediately—promoting fairer paths back into employment.
The DWP’s 2026 Universal Credit reforms represent a strategic rebalancing of welfare, enhancing support via above-inflation standard allowance increases, while tightening health-related benefits for new claimants.
Crucially, protections for existing and severely disabled claimants, along with reassessment exemptions and work incentives, ensure that the reforms remain humane and balanced. These changes mark a pivotal shift toward fairness, work encouragement, and long-term security.
FAQs
All UC claimants will benefit; for a single adult aged 25+, this translates to an increase up to £106 per week by 2029/30, worth about £725 extra annually.
No—only new claimants starting UC after April 2026 will be affected. Existing claimants, those with severe lifelong conditions, or under end-of-life rules will retain protection.
Approximately 200,000 individuals with the most severe, lifelong conditions will be free from reassessments, plus all those impacted by health element reductions can access the ‘Right to Try’ work option safely.
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