DR UK’s CEO Message To The House Of Lords - Oppose The Universal Credit Bill Cuts
The Bill, which had its name changed from The Universal Credit and Personal Independence Payment Bill after the Government was forced by Disabled campaigners to make concessions on the PIP clauses.
However, the Bill is of deep concern to Disability Rights UK, as it will further push Disabled people on the health-element of Universal Credit into poverty, removing £3,000 a year from their pockets.
We know Disabled people on Universal Credit already struggle to make ends meet, with 1 in 3 people who use a foodbank being Disabled.
DR UK’s CEO Kamran Mallick has written to House of Lords members urging them to reject its cuts measures:
"Subject – Oppose the benefit cuts in the Universal Credit Bill
On 9 July, the Government's Universal Credit Bill passed on the final vote.
The Government was forced to concede major changes to Personal Independence Payment, thanks to campaigning by Disabled people, Disabled People’s Organisations and charities across the UK, as well as MPs who listened.
The Bill is to be considered by the House of Lords on 22 July through a seriously curtailed process.
What you need to know:
- Dramatic cuts to Universal Credit (UC) remain in the Bill – the vast majority of new Disabled claimants will face a cut of £3,000 per year to the UC Health element.
- A restricted eligibility gateway “severe conditions criteria” will force tens of thousands of people who cannot work to live for years on only half of the existing health element.
- There will be a two-tier system. Debt and poverty are already a fact of life for existing Disabled claimants of UC, with many unable to afford essentials such as food, energy and housing or the additional costs of disability . the cuts will exacerbate this grave situation even further, pushing people into deep poverty.
What’s in the Bill:
The Bill provides that existing recipients of the UC health element will have their health element partially unfrozen.
Together with the proposed increase to the standard allowance, this means that 2.3 million disabled people currently receiving UC will see the total amount they receive, protected.
However, new Disabled UC claimants will experience harsh cuts
Clause 2 halves the rate of the UC health element for the vast majority of Disabled people claiming after April 2026. For those affected, this will be a cut of £3,000 per year.
Clause 2(1) and Sch 1, para 6 make provisions for people with a terminal illness or who are assessed as having a severe or lifelong condition. Disabled people in these groups claiming the UC health element after April 2026 will not experience the cut of £3,000 per year, and will not be required to face reassessment. DWP estimates this will cover 82,000 people by 2029/30 – just 10% of new claims to UC health.
The scale and impact of these cuts
By 2030, Clause 2 will effect 700,000 disabled people, who will lose £3,000 per year. The number of those affected will continue to grow in the years ahead.
These cuts are happening in a context where disabled people receiving UC already face disproportionately high levels of hardship. Research from Trussell Trust and YouGov has found that one in five people receiving UC and disability benefits have had to use a food bank in the last month.
Who will be affected
These cuts will affect the majority of future Disabled recipients of the health element of UC. Disabled people who receive the UC health element will have been through an assessment process and have been found by DWP to be unable to work or to prepare for work.
Whilst some people with a terminal illness or lifelong condition will be protected from the cut to the health element, due to the provisions in Clause 2(1) and Sch 1, para 6, the impact assessments that accompany the Bill show that fewer than 10% of new claims are expected to satisfy these criteria. Only 80,000 Disabled people will have their UC level protected by 2030, against a profound cut for 700,000 Disabled people.
How current UC claimants may be affected
These cuts will affect Disabled people claiming the UC health element after April 2026, however there are also real risks that current recipients will be caught by them. This includes disabled people who move into work, are unable to sustain that employment due to the impact of their condition and need to return to claiming UC as a ‘new claimant’ and so face a £3,000 cut compared to their previous award.
It also includes people who lose their health element following a reassessment and subsequently make a new application for it. There are high rates of inaccurate decision-making in the current system, with half (49%) of UC decisions which reach appeal being overturned.
Many disabled people find themselves unable to navigate the complex and lengthy appeals process and as a result make a new application for the health element. People caught in this situation will again be required to receive a significantly lower rate of support.
We ask that members of the House of Lords raise the damaging impact of these cuts in the debate and support amendments which oppose them.
Thank you for your consideration of these points.
Yours sincerely,
Kamren Mallick
CEO Disability Rights UK”
See also our related news stories:
Government’s poverty lie: Universal Credit Bill changes will still push 100,000 into poverty