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Universal Credit Overhaul Becomes Law, Lifts Core Payments and Reworks Health Support

The overhaul shifts support toward the core allowance, with PIP changes on hold pending a co-produced assessment review.

People have told The Big Issue they face stress when navigating the disability benefits process. We're here to help. Image: Pexels
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Ministers are still exploring how they can reshape the system to curb costs and encourage more people who are currently receiving sickness support to return to work (Photo: Wiktor Szymanowicz/Getty)
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Overview

  • The Universal Credit Act 2025 received Royal Assent on 3 September, with the DWP confirming the standard allowance will rise above inflation, worth an estimated £725 a year by 2029/30 for a single adult aged 25 or over.
  • From April 2026, the health top-up for new Universal Credit claims will be set at £50 per week, while existing recipients and those meeting Severe Conditions Criteria or Special Rules for End of Life will retain higher payments.
  • Around 200,000 people in the Severe Conditions Criteria group will be exempt from reassessment, and a new Right to Try Guarantee lets health and disability benefit recipients attempt work without triggering a reassessment.
  • A ministerial review of PIP assessments led by Sir Stephen Timms is underway, and annual uprating will continue in line with September CPI, with the final increase to be confirmed at the Autumn Budget.
  • DWP data shows more than 3.8 million people receive PIP in Great Britain and 484,055 receive ADP in Scotland, and official fraud-and-error analysis indicates about 11% of PIP claimants may be underpaid, affecting roughly 402,500 cases.