Sick and Disabled Claimants
New sick and disabled claimants will receive a much lower health payment, with the amount nearly halved and frozen until 2029. Carlos Ramón Bonilla Mirand/Pixabay

The UK government has confirmed that Universal Credit payments are set to rise above inflation from April 2026, with ministers confirming an increase to the standard allowance as part of a wider reshaping of the welfare system.

The uplift will raise baseline support for millions of households over the remainder of the decade, a move the government says is designed to strengthen the safety net and make the system more sustainable.

However, alongside the increase, new rules taking effect from 6 April 2026 will reduce health-related payments for some sick and disabled people, meaning new claimants assessed as unable to work could receive significantly less support than those already on the benefit.

Standard Allowance Set to Rise

Under legislation passed in 2025, the standard Universal Credit allowance will rise at a rate above inflation between 2026 and 2029. The increase will apply to all claimants regardless of employment status or health condition, boosting the core payment that forms the foundation of the benefit.

The Department for Work and Pensions (DWP) said the change reflects a shift towards encouraging employment where possible while maintaining long-term affordability. The higher standard rate will be paid automatically and does not depend on additional assessments.

However, the uplift applies only to the basic allowance and does not extend equally to additional elements of Universal Credit, including support linked to long-term sickness and disability.

Health-Related Support Reduced For New Claimants

From 6 April 2026, people newly assessed as having limited capability for work-related activity will see the monthly health element almost halved, falling from around £423 to about £217. The reduced amount will then be frozen until at least 2029, meaning it will not increase in line with inflation.

The DWP has framed the change as a 'rebalancing' of welfare support, arguing that higher health payments can reduce incentives to engage with work-related activity where employment may still be possible. Disability organisations dispute that view, saying it fails to reflect the realities faced by people with serious or long-term conditions.

Impact On Sick and Disabled Households

Charities including Scope and Disability Rights UK warn that the reduced payment will affect people who are unable to work due to illness or disability, rather than those choosing not to seek employment.

They say the health element is often used to cover unavoidable additional costs, such as higher energy bills, specialist equipment, care support and accessible transport. While inflation has eased, campaigners argue that disabled households continue to face higher-than-average living costs and have not experienced the same financial relief as other groups.

Freezing the reduced payment until 2029, they warn, risks eroding its value further in real terms, potentially leaving new claimants worse off despite the rising standard allowance.

Advice for Claimants Ahead of April 2026

Welfare advisers are urging people with long-term health conditions to begin the assessment process as soon as possible in early 2026 if they believe they may qualify for the current higher rate. The process can involve lengthy waiting periods, meaning claims initiated closer to April 2026 may fall under the new rules.

Citizens Advice has published guidance explaining how the reforms will work, who is affected and what steps claimants can take before the changes come into force.

A Quiet But Consequential Reform

The Universal Credit reforms highlight a central tension in welfare policy. While the government is increasing basic support for all claimants, it is tightening targeted assistance for new sick and disabled recipients.

As implementation approaches, charities and advisers say clear communication will be essential to ensure people understand how the changes apply to them. With the policy now confirmed, attention is shifting from headline increases to how the reforms will affect those with the highest needs in practice.

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