Overview

• From 2026/27 to 2029/30, the Universal Credit standard allowance will rise above inflation by 2.3%, 3.1%, 4% and 4%, which the DWP estimates will be worth about £725 a year by 2029/30 for a single adult aged 25+.
• From April 2026, the LCWRA health element for new claimants will be cut to £217.26 a month (about £50 a week) and then frozen at that level.
• People already receiving LCWRA before April 2026, plus those who meet new Severe Conditions Criteria (around 200,000 people) or qualify under Special Rules for End of Life, will keep the higher rate with uprating and be exempt from reassessment.
• After 2029/30, LCWRA will be withdrawn and replaced with a new Universal Credit health element awarded to those who receive PIP daily living, removing the need for a work capability assessment.
• The package includes a ‘Right to Try’ guarantee on attempting work and a £3.8bn Pathways to Work investment, with PIP eligibility changes deferred for a co-produced review led by Sir Stephen Timms as charities warn the cuts risk deeper hardship for disabled and young claimants.