Overview

• MPs backed the measure by 336 to 242, locking in a permanent above-inflation rise to the Universal Credit standard allowance from April 2026 and boosting it to £725 by 2029/30 for a single adult aged 25 or over.
• Health top-ups for new Universal Credit claimants will be capped at £50 per week from April 2026, while existing recipients and those meeting Severe Conditions or end-of-life criteria retain higher payments.
• Reforms to Personal Independence Payment eligibility have been deferred until after a Sir Stephen Timms-led review co-produced with disability groups concludes in autumn 2026, with any new criteria applying only to applicants from November 2026.
• The Department for Work and Pensions projects its annual sickness benefits bill will hit £100 billion by 2030 and estimates the reforms will save around £5 billion each year by then.
• Labour MPs and disability charities have decried DWP decision-making as arbitrary, citing cases where claimants lost PIP awards despite worsening health and calling for stronger safeguards.