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A cross-party group of MPs have raised concerns that planned cuts to the health component of Universal Credit will push disabled people into poverty and wants the government to assess the impact of the changes thoroughly before implementing them.
The report from the Work and Pensions Committee is also calling for the Personal Independence Payment (PIP) policy to be co-produced with disabled people.
In March 2025, the Government published proposals for reducing welfare spending in the Pathways to Work Green Paper. This included:
- Increasing the standard allowance of Universal Credit (UC), freezing the health element for current recipients, and almost halving it for future recipients from April 2026; and
- Restricting access to the daily living component of PIP by requiring claimants to score at least four points in at least one activity as well as meeting the other criteria.
The Government subsequently dropped all the PIP proposals and agreed to co-produce a new PIP assessment process with disabled people and their organisations in a review led by Sir Stephen Timms.
Changes to the health component of Universal Credit
However, under the planned reforms to Universal Credit (health), from April 2026 although all existing claimants and new claimants with severe or terminal conditions will be protected, other claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26.
This is part of the Government’s drive to get more people off welfare and into work, as described in their Pathways to Work Green Paper.
The Committee has raised concerns that some conditions, particularly serious mental health conditions, might not be included under the severe condition criteria; this also applies to people with fluctuating conditions. The Committee also asked the Secretary of State why an assessment of safeguarding risks had not been conducted before the Green Paper was published.
Committee Chair Debbie Abrahams said: “We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill); but there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.
“The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them – will enter poverty by 2030 as a result of the reduction in support of the UC health premium.”
“We recommend delaying the cuts to the UC-health premium, especially given that other policies that such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.”
“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected. The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”
Responses to the report
Joey Nettleton Burrows, Policy and Public Affairs Manager at the National Autistic Society, said: “We welcome this report which highlights the importance of working with disabled people, including autistic people, to create a benefits system that provides real support for those who can and cannot work. The Government must provide more accessible jobs for disabled people who are able to work, instead of merely cutting vital support like the health component of Universal Credit.
“Disabled people worked hard to challenge the Government’s proposals on welfare reform. The Government must listen and allow them to have a meaningful say on the future of disability benefits. We won’t stop campaigning until the benefits system truly works for autistic people.”
Helen Walker, Chief Executive of Carers UK, said: “We are pleased to see the Select Committee’s report stress the negative impact the proposals in the Pathways to Work Green Paper would have had on disabled people and unpaid carers, specifically in relation to tightening the eligibility criteria for Personal Independence Payment. PIP is a key gateway benefit for the main carers benefit- Carer’s Allowance.
“We also welcome the Committee’s calls for changes to Universal Credit health element (included in the final Universal Credit Bill which has just passed in the House of Lords) to be delayed, until the Government has properly assessed the impact they would have on poverty rates, people’s health and labour market participation. If the wider impact is not carefully assessed, it could push more people with disabilities and health conditions, as well as the unpaid carers who support them, into poverty. 1.2 million unpaid carers are living in poverty as a result of caring.
“The report also stresses the importance of ensuring there is clear engagement with disabled people as the Timms Review into PIP progresses. We are clear that this must also include unpaid carers, which the Government committed to during the passage of the Universal Credit Bill on 22 July.”
