New Universal Credit claimants will receive lower health element payments of £217.26 per month from April, while existing claimants and those with severe conditions remain protected at £429.80

Welfare reforms aimed at “rebalancing the benefits system” and supporting more people into employment took a step forward when Universal Credit legislation was presented in Parliament. The UK Government criticised the system inherited from the Conservatives, stating that individuals receiving Universal Credit due to health reasons are paid over twice as much as a single job-seeking person, without being provided with adequate support to transition closer to – or directly into – work.

The Department for Work and Pensions (DWP) announced that the reforms, which will be implemented in April, will address these ‘perverse incentives’. This will be achieved by introducing a reduced Universal Credit health element rate of £217.26 per month for new claimants, compared to the existing higher rate of £429.80.

However, those with the most severe, lifelong conditions, those nearing end of life, and all current Universal Credit health claimants will continue to receive the higher rate.

In order to provide the support ‘they’ve long been denied’, the DWP stated that the UK Government is investing over £3.5 billion in employment support by the end of the decade. This ensures everyone affected by the changes to Universal Credit will be offered personalised assistance to access the skills they need to progress, secure good jobs, and enhance their living standards – contributing to a growing workforce and a thriving economy for the future.

In line with the UK Government’s commitment to addressing the cost of living, nearly four million households on the standard rate of Universal Credit will experience the first sustained above-inflation increase to their benefit, reports the Daily Record.

This uplift equates to roughly an additional £295 this year for a single person aged 25 or over, which is expected to rise to £760 by the end of the decade, ensuring those seeking and in employment have more financial leeway as they strive to progress in their careers.

Work and Pensions Secretary Pat McFadden commented: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so.

“By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”

The DWP also confirmed the presence of over 1,000 Pathways to Work advisers in Jobcentres across Scotland, England and Wales, providing personalised assistance to individuals on health-related benefits with no obligation to work – many of whom previously lacked support. The DWP reported that ‘tens of thousands’ of claimants have already availed themselves of this support, with an estimated 65,000 people set to benefit within this financial year.

The UK Government insists it’s making good headway on its pledge to provide bespoke assistance to everyone impacted by the Universal Credit shake-up.

These fresh initiatives form part of a broader package designed to ‘meet sick or disabled people where they are’. WorkWell is currently being implemented nationwide across England, targeting support for as many as 250,000 additional individuals, whilst Connect to Work aims to deliver tailored assistance to 300,000 people throughout the coming five years.

The DWP stated: “With 2.8 million people currently out of work due to long-term sickness, these measures are central to the government’s Plan for Change to break down barriers to opportunity and get Britain working. By supporting more people into work and reducing the health element for new claimants, the reforms are set to save taxpayers £950 million by 2030/31 – delivering fairness for working people and taxpayers alike.”

Responding to the forthcoming changes, Warren Kirwan, Media Manager at disability equality charity Scope, cautioned: “These cuts to universal credit will only make it harder for disabled people to get into work. The health element of universal credit only exists because it’s more expensive and often takes longer for disabled people to get into work.

“We urge the government to properly listen and engage with disabled people, to build a welfare system that supports disabled people and addresses the extra costs they face.”