DWP to Cut £3,000 from Universal Credit Health Element – Key Details for 2026 Claimants

Universal Credit health element: Big changes are coming to Universal Credit, and they could mean a significant drop in financial support for many people living with long-term health issues. The Department for Work and Pensions (DWP) has confirmed it will reduce the value of the Universal Credit health element, a move that will deeply affect new claimants starting in April 2026.

This decision has raised serious concerns among welfare rights groups, disability advocates, and those relying on these benefits to manage daily living costs. With the cut potentially taking away up to £3,000 a year from new claimants, the announcement signals a major shift in how support is being offered to people with limited work capacity.

Universal Credit health element

The Universal Credit health element is a vital part of the benefits system designed for people who are unable to work, or whose ability to work is significantly reduced due to a health condition or disability. It’s awarded to individuals classified as having either “limited capability for work” or “limited capability for work and work-related activity.”

Currently, this element adds approximately £97 per week to a claimant’s Universal Credit payment. It plays a key role in helping those with health challenges cover essential living expenses. However, from 2026, this amount will be halved for new claimants, and existing recipients will see the value of their payments shrink over time due to a freeze on increases.

Overview Table

Aspect	Details
Current Health Element	£97 per week for existing eligible claimants
New Health Element (from 2026)	£50 per week for new claimants
Freeze for Existing Claimants	Yes, from 2026 to 2030 (no inflation adjustment)
Real-Term Annual Loss (Existing)	Estimated £500 per year
Annual Loss (New Claimants)	Up to £3,000 compared to current support
Offset Proposals	Higher standard allowance + new premiums
People Affected	2.25 million existing and 730,000 new claimants

What Are the Planned Changes?

Starting in April 2026, the DWP will implement two key changes to the Universal Credit health element:

• The current weekly amount of £97 will be frozen for existing claimants, meaning they will not receive any increases tied to inflation until at least 2030.
  
• New claimants applying for the health element after April 2026 will only be eligible for £50 per week—a nearly 50% reduction in financial support.
  

These changes represent one of the biggest reforms to the Universal Credit system in recent years and will significantly reduce the total amount of help available to people with serious health conditions.

Why Is the DWP Reducing the Health Element?

According to the government, this change is part of a broader push to reform and modernise the welfare system. Ministers argue that while it’s important to protect those with severe and lifelong conditions, the benefits system should also encourage those who can work to do so, even in limited roles.

The goal, they say, is to create a system that balances support with sustainability—offering targeted help while also managing long-term budget pressures. The Universal Credit health element is being restructured in this context, with the hope of reducing dependency and promoting engagement with work.

How Will This Impact Claimants?

The impact of these changes will be felt differently depending on whether someone is already receiving the health element or plans to apply in 2026 or later.

Existing Claimants:

• Will continue to receive £97 per week, but the payment will not rise with inflation.
  
• Over time, this will lead to a real-term reduction in support, estimated at around £500 annually.
  
• The freeze is scheduled to last until 2030, further widening the gap between what’s paid and what’s needed.
  

New Claimants (from 2026):

• Will receive just £50 per week, a steep drop from the current rate.
  
• This reduction means new applicants will lose roughly £3,000 a year in comparison.
  
• The cut will likely hit hardest for people with chronic or permanent conditions, who depend on this money for essential costs like rent, utilities, and food.
  

With the Universal Credit health element acting as a financial safety net for many vulnerable individuals, the reduction could make everyday life more difficult for those entering the system after 2026.

Will Any of This Be Offset?

To soften the impact, the government has said it plans to raise the standard Universal Credit allowance. In addition, a new premium will be introduced for people with lifelong or particularly severe health conditions. These measures are intended to compensate for the reduced health element and to ensure continued support for the most vulnerable.

However, early analysis suggests that these increases may not fully cover the losses. Many recipients could still end up worse off overall, particularly those with high medical or mobility-related expenses. Advocacy groups have raised concerns that these changes may lead to greater hardship and increased demand for local authority support and food banks.

But is it enough?

For many, the answer is no. While the government insists the reforms are aimed at making the system more efficient and targeted, critics argue that the cut to the Universal Credit health element puts too much of the burden on people who are already struggling.

Without adequate compensation, many new claimants may face financial insecurity and a reduced quality of life. Disability campaigners are urging the government to reconsider or delay the cuts until a more balanced system is in place.

The fear is that the changes could discourage people from seeking the support they need, or worse, leave them without the means to cover basic costs. As the rollout date approaches, these concerns will likely remain at the forefront of the debate over the future of welfare support in the UK.

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