Overview
- The cut, which took effect Monday, halves the Universal Credit health element for new limited capability claimants to £217.26 a month, with existing recipients and people with severe or terminal conditions protected at £429.80.
- Universal Credit’s standard allowance — the base monthly amount before child or health additions — rises above inflation, with about four million households set to receive roughly £295 more over the year.
- The two‑child limit on benefit claims has been abolished, with the OBR estimating around 560,000 families gain by an average £5,310 and child poverty could fall by 450,000 by 2029/30.
- Ministers say the redesign will reduce projected Universal Credit spending by almost £1 billion and support a £3.5 billion employment programme, with stricter work‑capability assessments deciding access to the higher health rate.
- Advice groups warn the changes create a two‑tier system between protected and new health‑related claimants, while a separate review of Personal Independence Payment continues with findings due in the autumn.