The UK welfare system is about to go through one of its biggest shake-ups in years. Starting from April 2026, the Department for Work and Pensions (DWP) will begin introducing a series of reforms that will affect millions of people across the country especially those who rely on Universal Credit (UC) and Personal Independence Payment (PIP).
The government says these changes are meant to make the welfare system “fairer, simpler, and sustainable.” However, many claimants and campaigners fear that these reforms could lead to a loss of income for people with health conditions, disabilities, or those struggling to make ends meet.
If you currently receive Universal Credit or PIP or if you’re planning to apply in the future it’s very important to understand what’s changing, when it’s happening, and how it could affect you and your household finances.
1. Universal Credit Standard Allowance to Rise Above Inflation
From April 2026, the basic Universal Credit payment (known as the standard allowance) will go up faster than inflation for the next few years. This means that your main UC payment will gradually increase more than prices are expected to rise.
At the moment, the standard allowance for a single adult aged 25 or over is around £91 per week, but this will go up to £98 per week from April 2026. Between 2026 and 2030, this increase will continue, meaning claimants will see a total rise of about £725 more than what inflation alone would have provided.
Here’s the planned schedule for the increases:
- 2.3% rise in 2026/27
- 3.1% rise in 2027/28
- 4% rise in 2028/29
- 4% rise in 2029/30
While this might sound like good news, experts say that the extra money could be cancelled out by cuts to other parts of the benefit system especially for those with health problems or disabilities. So, while your standard UC amount might look a bit higher, the total support you receive could still end up being less than before.
2. Sickness and Disability Payments Under Universal Credit to Be Cut in Half
This is one of the biggest changes coming in 2026.
Right now, people who are unable to work due to health issues can get an extra monthly payment through what’s called the Limited Capability for Work and Work-Related Activity (LCWRA) element. This currently gives around £423.27 per month on top of your standard UC payment.
But from April 2026, anyone making a new claim will only get £217.26 per month nearly half the current amount. Even worse, this amount will be frozen at that level, meaning it won’t increase with inflation or future cost-of-living adjustments.
By 2030, this LCWRA payment will disappear altogether and be replaced with a new “health element” (which we’ll explain later).
The government argues that this change will stop people from “double claiming” for example, claiming both LCWRA and PIP for the same condition but critics say it’s just a way to save money by cutting support for those who need it most.
For new claimants after April 2026, this could mean losing over £2,400 per year compared to what people currently receive.
3. Existing LCWRA Claimants Will Be Protected
If you’re already receiving the LCWRA element before April 2026, you won’t lose your payment. The government has said that current claimants will continue getting the higher £423.27 per month, and that it will still go up each year in line with inflation.
Originally, the DWP wanted to freeze the amount for everyone, but after pressure from campaigners and MPs, they agreed to protect existing recipients.
So if you already get LCWRA, you’ll keep it. But if you apply after April 2026, you’ll only get the reduced amount. This creates a clear divide between “old” and “new” claimants, with the new ones receiving far less financial help.
4. A New “Severe Conditions” Category for the Most Vulnerable
From 2026, the government will introduce a new Severe Conditions group under Universal Credit. This category will apply to people with the most serious, lifelong disabilities or terminal illnesses those who will never be able to work.
People who qualify for this new group will:
- Continue receiving the full LCWRA payment, uprated each year with inflation.
- Be exempt from future reassessments.
- Automatically qualify under the Special Rules for End of Life (SREL) if terminally ill.
It’s expected that around 200,000 people will meet the criteria.
However, disability campaigners argue that the criteria are far too strict. Lord Palmer, a Liberal Democrat peer, pointed out that only “one in nine” current LCWRA recipients will qualify for this group meaning most people who are seriously ill but not considered “lifelong” disabled could lose a huge amount of support.
He warned that this could lead to “spiralling hunger, mental health crises, and suicide,” adding that the changes could “destroy lives.”
In short: while the most severely ill will be protected, many people with ongoing but not “lifelong” conditions will see big cuts.
5. LCWRA Will Be Replaced by a New Health Element Linked to PIP
From April 2030, the LCWRA payment will be completely phased out. In its place, the government plans to create a new Health Element, which will be automatically awarded to people who receive the daily living component of PIP.
This means there will no longer be two separate assessments one for PIP and another for Universal Credit’s health element. If you get PIP, you’ll automatically get the new health top-up with your Universal Credit.
On paper, this sounds like a simplification one test instead of two. But it also means that if you don’t qualify for PIP, you won’t get any health-related support in your UC, even if you have a long-term illness that makes working difficult.
So, for many people, it could make things worse, not better. Those with moderate health conditions who don’t meet PIP’s strict criteria could lose hundreds of pounds a month.
6. Major PIP Review Coming in Autumn 2026
At the same time as these Universal Credit changes, PIP itself is getting a full review. This is called the Timms Review, named after DWP Minister Sir Stephen Timms.
The review is being carried out together with disabled people, advocacy groups, MPs, doctors, and policy experts. It will look closely at how both parts of PIP the daily living and mobility components — are assessed, and whether the current system is fair and accurate.
It will also look at linked benefits, such as the Motability vehicle scheme and other entitlements that depend on PIP eligibility.
Importantly, some controversial plans to tighten PIP eligibility have been paused until the review finishes. These would have required claimants to score a minimum of four points in at least one daily living activity just to qualify.
Sir Stephen Timms said the review aims to be “thorough and inclusive,” and that it will be co-produced with disability groups to ensure it reflects real experiences.
The findings are expected by Autumn 2026, and they could lead to even more changes to how PIP is assessed or awarded in the years ahead.
What These Changes Mean in Real Life
All these reforms together paint a complicated picture. For some people particularly those with mild health conditions or those who are able to return to work the government believes this new system will encourage independence and make things more straightforward.
But for others, particularly people with long-term illnesses, disabilities, or fluctuating conditions, these changes could result in serious financial hardship.
Here’s how different groups might be affected:
- Long-term disabled claimants: Those already on LCWRA will be safe for now, but anyone applying after 2026 could lose over £2,000 a year. After 2030, they’ll need to rely on PIP eligibility to get extra support.
- New claimants after 2026: They’ll face lower sickness payments and stricter rules.
- Terminally ill claimants: Those under the “Special Rules for End of Life” will continue receiving the full LCWRA rate, but this applies to a very small group.
- People with fluctuating or moderate health conditions: They’re at the highest risk of losing support because they may not qualify for PIP but still struggle to work.
- People who don’t claim PIP: They will not qualify for the new health element after 2030, even if they can’t work due to illness.
Why the Government Says It’s Doing This
According to the DWP, the main goal is to make the welfare system “sustainable” for the future and reduce what it calls “incentives” for people to claim sickness benefits unnecessarily.
Officials argue that by linking health-related payments directly to PIP and removing separate work capability assessments they can reduce bureaucracy, speed up claims, and make the process simpler.
They also believe that higher Universal Credit standard allowances will help offset some of the losses.
However, campaigners and economists have pointed out that the people most affected by these cuts are often those least able to cope people already struggling with rising energy bills, rent, and food prices.
Concerns Raised by Disability Charities and MPs
Many organisations representing disabled people have criticised the reforms. They say the changes risk pushing vulnerable people deeper into poverty.
Groups such as Disability Rights UK and Scope argue that replacing LCWRA with a PIP-linked health element will exclude thousands of people who cannot work but don’t qualify for PIP.
Some MPs have also expressed concern that the new “Severe Conditions” category is far too narrow, leaving out those with long-term but non-terminal illnesses.
Even the House of Lords has debated the issue, with peers calling for a re-think before April 2026.
Preparing for the Upcoming Changes
If you currently receive Universal Credit or PIP, it’s a good idea to start preparing early. Here are a few practical steps:
- Check your current award: Make sure you know what elements you’re getting now especially whether you receive LCWRA.
- Keep medical records updated: For anyone with a long-term condition, having up-to-date medical evidence will be crucial if you need to reapply or appeal decisions in future.
- If you don’t get PIP, consider applying: Since future health support under UC will depend on PIP, it might be worth checking if you could qualify.
- Seek advice: Charities like Citizens Advice, Scope, and Turn2Us can provide free help on understanding benefits and appealing decisions.
- Stay informed: As the DWP releases more updates over the next year, check official sources like gov.uk/universal-credit and gov.uk/pip.
The Bigger Picture
These upcoming reforms show that the UK’s welfare system is changing direction. The focus is shifting from providing separate layers of support for different conditions to a more centralised approach tied to PIP.
For some, it will mean fewer assessments and simpler processes. For others, especially those who don’t meet strict criteria, it could mean the loss of essential income.
As one disability campaigner put it:
“Simplifying the system doesn’t help if it leaves people behind. What the DWP calls simplification, many of us see as exclusion.”
Over the next year, debates are likely to continue in Parliament and the media about whether these reforms are truly fair or simply another round of welfare cuts under a new name.