The Department for Work and Pensions has announced sweeping welfare reforms aimed at helping hundreds of thousands of sick and disabled people into work, while saving taxpayers an estimated £1 billion.
The changes, which came into force on 6 April, are designed to remove what ministers describe as “perverse incentives” that previously discouraged benefit claimants from seeking employment.
Key Changes to Universal Credit
Under the new system, the health‑related element of Universal Credit for new claimants will be reduced to £217.26 per month, down from £429.80. However, existing claimants and individuals with severe or lifelong conditions, including those nearing the end of life, will continue to receive the higher rate.
At the same time, nearly four million households will see an increase in the standard Universal Credit allowance. A single person aged 25 or over will receive an annual boost of around £295, exceeding inflation.
Expanded Employment Support
The reforms are accompanied by a £3.5 billion employment support package, offering voluntary help to those able to work. More than 65,000 people have already taken part since March 2025.
From 8 April, eligible claimants will receive notifications through their Universal Credit accounts inviting them to access tailored support. This includes one‑to‑one guidance from advisers and referrals to programmes such as Connect to Work and WorkWell.
The government says these initiatives aim to help up to 550,000 people either enter or remain in employment over the coming years.
Minister’s Comments
Social Security and Disability Minister Stephen Timms said the reforms would modernise a system that had “locked disabled people and people with long‑term conditions out of work”.
He added: “These laws will reduce projected Universal Credit spending by almost £1 billion while boosting support and creating a system that helps people build a better future.”
Wider Context
The government says 2.7 million people are currently on Universal Credit with limited capability for work or work‑related activity. Officials argue the reforms will remove barriers to employment and ensure more people receive active support rather than remaining on long‑term benefits without assistance.
The changes also include above‑inflation increases to standard Universal Credit rates through to 2029/30, marking what ministers describe as the first sustained real‑terms uplift to the benefit.
Based on reporting by the Department for Work and Pensions. Additional analysis by The Credibility News.
