In June, the government put forward a new bill to change how Universal Credit and PIP work. After some debate and amendments, the bill moved quickly through Parliament. On 9th July, it went through both the committee stage and its final reading in the House of Commons all, on the same day. Because the Speaker of the House marked it as a money bill (a bill mainly about government spending), it doesn’t need full approval from the House of Lords. That means it can become law much faster, with any Lords stages being just a formality.
- What are the changes?
There was strong pushback from MPs over the government’s original plans to change Universal Credit and PIP. In response, the government made some concessions to help the bill move forward.
One key concession is that any changes to PIP are now on hold until the results of the Timms Review, a review that will be co-produced with Disabled people, charities, and carers.
- Universal Credit is going up, but not for everyone
The basic Universal Credit payment (standard allowance) will increase every year by more than inflation from 2026 to 2030. That means people will gradually get more money over time to help keep up with rising living costs.
But not everyone will benefit equally…
- Health-related top-up will be halved for new claimants.
Right now, if you’re too unwell to work and placed in the Limited Capability for Work and Work-Related Activity (LCWRA) group, you get a monthly health element worth around £390–£420 on top of your UC.
Starting April 2026, new claimants put into the LCWRA group will get only half of that amount and it will be frozen, meaning it won’t rise with inflation each year.
So if you apply after April 2026, you could end up with less money in the long run.
If you’re already getting this health element before April 2026, your payments won’t be cut or frozen. Even if you stop claiming for a bit and restart, as long as it’s within six months, you’ll stay on the higher amount.
People with lifelong, severe conditions or those who are terminally ill can still get the full health element, and it will continue to rise with inflation. This is called meeting the Severe Conditions Criteria.
So not everyone new will lose out but you’ll need to meet stricter criteria to qualify.
- What about ESA?
Income-related ESA (a benefit for people who can’t work due to disability or illness) will also be affected:
Personal allowance and disability premiums will be frozen from April 2026 to 2030 – they won’t rise with inflation.
New Style ESA (for people who paid enough National Insurance) will stay the same and is not affected by the freeze
- Need Support? We’re here to help
As a client, If you’re worried about how these changes might affect you, or you need help with benefits, you can get information and support from the following:
- The Groundwork Team at Sue Lambert Trust help with benefit applications and mandatory reconsiderations
- The Groundwork Team can do referrals for benefit tribunals
- Access to online support:
Benefits Help – Citizens Advice
Check if you’re eligible for PIP – Citizens Advice
Ask your counsellor to refer you to the Groundwork Team or email me directly at helen@suelamberttrust.org if you would like Groundwork Support.
- Coming Soon: Workshops & Drop-In Clinics
We’re currently exploring the idea of running workshops and drop-in clinics to help with PIP and UC applications. If this is something you’d be interested in, or if you have other suggestions, please let us know. Your input helps us shape our services to better meet your needs. Email helen@suelamberttrust.org
Together, we can navigate these changes and ensure that your voice is heard. We’re here to support you every step of the way.