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Government Confirms April Universal Credit Overhaul, Cutting Health Element for New Claims and Raising Standard Allowance

Safeguards keep the higher payment for existing recipients plus people with severe or terminal conditions, reflecting a drive to remove perceived disincentives to work.

Overview

  • Legislation has been laid in Parliament to put the Universal Credit changes into effect from April.
  • New health‑element claimants will receive £217.26 per month from April, a reduction of £212.54 compared with the higher rate paid today.
  • The standard allowance will rise by roughly £300 a year, with nearly four million households benefiting and a single adult aged 25 or over gaining about £295 this year.
  • Employers and HR experts caution the reforms will falter without funding and support for adjustments, supervision and phased starts for people with health conditions.
  • The DWP says existing health claimants and those meeting severe, lifelong or end‑of‑life criteria will keep the higher rate, with the LCWRA rate scheduled to reach £429.80 in 2026/27.