A new report from the Work and Pensions Committee has raised
concerns that planned cuts to the health component of Universal
Credit (UC health) will push disabled people into poverty despite
the above inflation rise in the UC standard allowance.
In its Pathways to Work report, the Committee repeated
calls to delay planned cuts in UC health reform until the full
impact of the changes are better understood. The Committee wrote to the
Secretary of State in May calling for a pause of the planned
reforms to UC health and Personal Independence Payments (PIP) and
called for PIP policy to be co-produced with disabled people.
The Government subsequently dropped all the PIP proposals and
agreed to co-produce a new PIP assessment process with disabled
people and their organisations in a review led by Sir .
However, under the planned reforms to UC health, from April 2026
although all existing claimants and new claimants with severe or
terminal conditions will be protected, other claimants assessed
as having limited capability for work and work-related activity
will see their awards halved from £423.27 to £217.26.
This is part of the Government's drive to get more people off
welfare and into work, as described in their Pathways to Work
Green Paper.
Although the intent to safeguard these people was welcomed, MPs
on the Committee raised concerns that some conditions,
particularly serious mental health conditions, might not be
included under the severe condition criteria; this also applies
to people with fluctuating conditions. The Committee also asked
the Secretary of State why an assessment of safeguarding risks
had not been conducted before the Green Paper was published.
Committee Chair said, “We
welcome the concessions that the Government made to the UC and
PIP Bill (now the UC Bill); but there are still issues with these
welfare reforms not least with the cut in financial support that
newly sick and disabled people will receive.”
“The Government's own analysis published in March indicates
that from next April approximately 50,000 people who develop a
health condition or become disabled – and those who live with
them - will enter poverty by 2030 as a result of the reduction in
support of the UC health premium.”
“We recommend delaying the cuts to the UC-health premium,
especially given that other policies that such as additional NHS
capacity, or employment support, or changes in the labour market
to support people to stay in work, have yet to
materialise.”
“We agree in a reformed and sustainable welfare system, but
we must ensure that the wellbeing of those who come into contact
with it is protected. The lesson learned from last month should
be that the impact of policy changes to health-related benefits
must be assessed prior to policy changes being implemented to
avoid potential risks to claimants.”
ENDS
Notes to editors:
- The Universal Credit standard allowance is the minimum level
of support received by people out of work. For those in work, and
below this level, the standard allowance will top-up income to
reach it. The minimum monthly levels for singles are £316.98 for
under 25s and £400.14 for over 25s, and for couples under 25
£497.55 and £628.10 for over 25s.
- Non-pensioner health-related benefits spending has jumped
£20bn since the pandemic.
- UC health as an incapacity benefit paid to people with
conditions that limit their ability to work. There are others,
including Employment Support Allowance. In total 3.3 million
people now receive an incapacity benefit.
- Current spending on incapacity benefits as a % of GDP is
currently significantly lower than its 1990s peak (1.3%).
