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Universal credit health benefit reform sees cut for new claimants this week

New claimants will get nearly half the health top-up as ministers say the reforms will save taxpayers about £1 billion.

  • On Monday, new claimants for the health element of Universal Credit will receive a lower monthly rate of £217.26, marking a significant reduction in welfare payments for this group.
  • Social security and disability minister Sir Stephen Timms argued the welfare system has "for too long locked disabled people and people with long-term conditions out of work," targeting what ministers call "perverse incentives."
  • Statistics published last month showed 2.7 million people on UC were assessed as having limited capability for work and work-related activity ; the Government stated these modifications will save taxpayers around £1 billion.
  • Almost four million households on the standard rate of UC will receive around £295 extra this year, as the Government invests £3.5 billion in employment support to help people "rather than leave people stuck on benefits."
  • People with the most severe, lifelong conditions and those nearing the end of life remain exempt, continuing to receive the higher monthly rate of £429.80, while Timms is consulting on Personal Independence Payment with changes postponed.
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Universal credit health benefit to be cut for new claimants as reforms take effect

The Government says welfare changes coming in this week will overhaul the benefits system.

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Birmingham Mail broke the news in Birmingham, United Kingdom on Sunday, April 5, 2026.
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