As part of proposed benefit reforms, the Government is set to block a scheduled increase to the part of universal credit (UC) given to people whose long-term health condition or disability limits their ability to work or prepare for work.
The annual increase is usually in line with the previous September’s inflation figure. So under current forecasts it would climb 3.7 per cent to £100.59 per week in April 2026. But under plans laid out by Work and Pensions Secretary Liz Kendall, no increase will be given next year.
The change to incapacity benefit was one of wider reforms of the benefits system announced on Tuesday,
square SAVING AND BANKING The disabled people feeling full force of 'terrifying' disability benefits cuts
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The standard amount of UC a single person over the age of 25 receives is £91 per week. Next month, this is due to increase by 1.7 per cent anyway – in line with last September’s inflation figure – meaning it will grow to £92.55 per week.
Overall, this means by next April, someone who gets both the standard and incapacity element of universal credit will have gained around £2.03 per week on the standard allowance but lost £3.59 per week on the incapacity element which has been frozen.
But an even bigger loss will occur for new claimants. For these people the incapacity element of the benefit will be cut by £47 per week to £50 from 2026, meaning from 2026, they will be getting £50.59 per week less than they would have likely received if the Government had not announced the changes on Tuesday.
How the changes work can be found below:
Tightened eligibility rules for personal independence payments (PIP) and increased benefits reassessments were just some of the changes announced by work and pensions secretary Liz Kendall.
The Prime Minister Sir Keir Starmersaid it would be “morally bankrupt” not to reform the “fundamentally broken” system.
The Disability Benefits Consortium, an umbrella body representing more than 100 charities and organisations, condemned the “cruel cuts”.
When elected, the Labour government said it would reduce the welfare bill by more than £5bn by 2030 – matching Tory savings from the previous administration – but would bring forward new reforms to make the savings.
Spending on personal independence payments (PIP) – to help disabled people with day to day support – is projected to almost double to £34bn by 2029-30.
Meanwhile ministers are under pressure to tackle an increase in the number of economically inactive people, with a recent spike in people not currently working or in education due to a health condition.
The DWP has been approached for comment.
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