Mps Call For Delay Of Cuts To UC Health Element Until An Independent And Comprehensive Impact Assessment Is Carried Out

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A new report from the Work and Pensions Committee of MPs has raised concerns that planned cuts to the health element of Universal Credit (UC health) will push disabled people into poverty despite the above inflation rise in the UC standard allowance.

In its report, the Committee repeated calls to delay planned cuts in UC health reform until the full impact of the changes are better understood.

The Committee wrote to the Secretary of State in May calling for a pause of the planned reforms to UC health and Personal Independence Payments (PIP) and called for PIP policy to be co-produced with disabled people.

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.

However, under the planned reforms to UC 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.

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.”

Note: The Government claims that the final amended PIP and UC Bill will result in 50,000 people being in poverty by 2029/30,

However, an analysis by the social security information website Benefits and Work, shows the reality is that 100,000 more children and working age people will be forced into poverty.

Other recommendations made by the Committee include:

Among its recommendations, the Committee also calls on the government to -

publish an assessment of the impact that a more disability-friendly labour market and additional NHS capacity, as well as longer-term improvements in population health, could have on rates of disability and incapacity benefit on-flows and off-flows;
clarify what type of benefit the UC health element will be in the reformed system, in light of its plans to abolish the work capability assessment and link eligibility for universal credit health to the PIP assessment;
review its decision to delay access to universal credit health until the age of 22, given that its concerns about young people being trapped on benefits early in life will be addressed by its wider reforms;
clarify its intentions for the conditionality regime for disabled people, specifically detailing requirements beyond support conversations, and make clear on what basis work coaches will make decisions and what right of appeal claimants will have concerning their conditionality regime to ensure it does not become dependent on the “whims of work coaches'”;
adhere to the 'precautionary principle' that the impact of policy changes to health-related benefits must be assessed prior to their implementation to avoid potential risks to claimants; and
provide an update as soon as possible on the progress of discussions with the Scottish Government regarding implementation of its reforms in Scotland.