DWP Benefits Overhaul- Key Universal Credit & PIP Changes Claimants Must Know
The UK government is rolling out sweeping benefit reforms in 2025 and 2026, targeting Universal Credit and Personal Independence Payment (PIP).
These changes, unveiled in March’s Spring Statement (26 March 2025), aim to save up to £5 billion annually. But what do they mean for current and future claimants? We explain in full detail.
1. Universal Credit Health Element Cuts
- Current rate: £97/week for those with Limited Capability for Work‑related Activity (LCWRA)
- From April 2026: New claimants see a significant reduction to £50/week, frozen until 2029/30
- Existing claimants retain £97/week, but this amount is frozen—effectively cutting support in real terms
2. Rising Universal Credit Standard Allowance
To offset the health‑element reduction, the standard allowance will increase above inflation:
| Year | Single Over‑25 Allowance (£/week) | Increase from Previous Year |
|---|---|---|
| 2025/26 | 92 | – |
| 2026/27 | 98 | +6 |
| 2027/28 | 100 | +2 |
| 2028/29 | 103 | +3 |
| 2029/30 | 106 | +3 |
3. Harder PIP Eligibility Rules
From November 2026, claimants must now score at least 4 points in a single daily living activity (e.g., dressing, cooking) to qualify for the daily living component of PIP
- Under current rules, points can be accumulated across different activities.
- Under the revised system, scoring 4 in a single task (plus 8 total) becomes mandatory
- Mobility component unaffected
- Up to 800,000 existing claimants could lose daily living awards by 2029/30
4. Work Capability Assessment Replaced
From 2028/29, the UC Work Capability Assessment (WCA) will be scrapped. Eligibility for the health element of UC will depend directly on PIP assessments, reducing paperwork duplication
5. Estimated Impacts on Households
- 3.2 million households could lose £1,730/year on average
- £5 billion in total savings projected by 2030
- Up to 250,000 individuals, including children, risk slipping into relative poverty
- An estimated 800,000 PIP claimants may lose the daily living component by 2029/30
6. Safeguards & Mitigation
- A “right to try” provision will allow disabled individuals to attempt work without losing benefits
- Transitional protection under discussion for those losing support post-November 2026
- Scrapping of WCA and PIP-based integrated assessments intended to streamline the system
- £1 billion annual investment in back-to-work programs for disabled individuals
7. Help Now: What Claimants Can Do
- Apply early: Universal Credit before March 2026 and PIP before November 2026.
- Gather medical evidence: Ensure GP letters, specialist reports, and documentation are current.
- Use benefit calculators like those from Turn2Us or Policy in Practice
- Seek advice from Citizens Advice, Scope, Disability Rights UK, Mind and Trussell Trust
In summary, the DWP’s Benefits Overhaul brings substantial changes to Universal Credit and PIP, with health-element cuts and tougher eligibility.
While there are allowances for transition and work incentives, many claimants face significant losses. Early applications, documentation, and expert guidance are essential to navigate these changes.
FAQs
Who gets affected by the new Universal Credit rules
New UC claimants with LCWRA from April 2026 face a cut from £97 to £50/week. Existing claimants keep £97 but see no uprating.
Does the PIP change apply to mobility support
No. Only the daily living component changes. Mobility support rules remain the same after November 2026.
What help is available if I lose benefits due to these changes?
Transitional protections may be applied, plus increased support through Citizens Advice, Scope, Mind, and Jobcentre employment programs.
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