Universal Credit Act 2025 - Latest Updates

Community_Scope
Community_Scope Posts: 2,110 Scope Online Community Coordinator

The Universal Credit Act 2025 aims to rebalance Universal Credit (UC) by encouraging employment for those who can work and targeting support for individuals with severe health conditions. It takes effect from 6 April 2026.

Standard Allowance Increases
From April 2026, the UC standard allowance rates will rise above inflation annually until 2029/30:

£338.58 for single individuals under 25
£424.90 for single individuals 25+
£528.34 for couples under 25
£666.97 for couples 25+

Reduction of LCWRA for New Claimants
From 6 April 2026, new claimants with a health condition or disability classified as Limited Capability for Work and Work-related Activity (LCWRA) will receive £217.26 per month, frozen until 2029/30.

Protection for Existing Claimants
Claimants with a health condition or disability identified on or before 5 April 2026 will receive the higher LCWRA rate of £429.80, even if their entitlement decision is made after 6 April 2026. Their combined UC standard allowance and LCWRA will rise with inflation annually until 2029/30.

Claimants Moving from Legacy Benefits
Those transitioning from legacy benefits to UC on or after 6 April 2026 will receive the higher LCWRA rate of £429.80. Transitional Protection ensures that the Transition Element is not reduced by the higher LCWRA rate.

Protection for the Most Severely Ill
Claimants with severe, lifelong conditions meeting the Severe Conditions Criteria, or those with less than 12 months to live under Special Rules for End of Life, will receive the higher LCWRA rate. These claimants will not face reassessment, and their combined UC standard allowance and LCWRA will rise with inflation annually until 2029/30.

Severe Conditions Criteria
A DWP healthcare professional must assess claimants to confirm their condition will always meet LCWRA criteria, last for life, have no recovery prospect, and have a formal diagnosis.

Special Rules for End of Life
Claims under Special Rules for End of Life are fast-tracked without medical assessment, awarding the highest LCWRA rate based on healthcare professional confirmation.

For more details, please visit GOV.UK

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Comments

  • NeuroEve
    NeuroEve Online Community Member Posts: 132 Empowering

    I can find anything about the severe disability criteria. The only information on the Gov website said it was withdrawn in May 2025.

  • Rosie_Scope
    Rosie_Scope Posts: 7,860 Scope Online Community Coordinator

    Hi @NeuroEve, the information used to write this post came from a DWP press release shared with Scope. As far as I can see, the bit about the severe conditions criteria has come straight from the Universal Credit Act legislation itself, but just written with slightly easier wording.

    They may not have put any further information up onto the gov website yet, as the act is only due to start taking effect in April. Hopefully there will be something more to read about it soon.

  • NeuroEve
    NeuroEve Online Community Member Posts: 132 Empowering

    hi thanks, so is the severe conditions criteria still the same if someone was being assessed in say May 2026. It’s very confusing. I have 2 adult children who are autistic as well as other conditions. So if they were both to be reassessed on UC I’m not sure they would stay in LCWRA group going by the criteria stated in the above link.

  • Rosie_Scope
    Rosie_Scope Posts: 7,860 Scope Online Community Coordinator

    Sorry, I'm not too sure @NeuroEve, I haven't seen much guidance on this yet I'm afraid. I'm hoping we'll see some more clarification closer to the time and we'll try to keep everyone updated as soon as we find out more about how it'll all work.

  • lesleyDan
    lesleyDan Online Community Member Posts: 17 Contributor

    So it says that UC combined standard allowance and LCWRA will rise annually with inflation but people who were migrated from a legacy benefit to uc receiving TP won't actually benefit from any increases as they did with their legacy benefit because any increase will be deducted pound for pound from the TP part of their UC which will leave people who have no other way of adding to their income and are totally reliant on cost of living benefit increases to cover cost of living increases in rent, utilities, food etc, plus the increase in council tax charges because councils have been given free reign to interpret the TP amount as ' extra income' will be significantly worse off until their TP has has eroded to zero, effectively 'freezing' the amount of benefit received at the rate you were getting at the point of migration. So for the next few years how are people in this position meant to cover higher rent payments, bills, basically everything and the big increase in their council tax charges 🤷

  • Marie12
    Marie12 Online Community Member Posts: 13 Contributor

    hi Rosie

    As well as having CP (reason I’m here) I work in benefits. Great finally having some good news isn’t it! that as long as you start the assessment by 5 April it will be the higher, rather than needing to have it paid already by April. And that contributions based/New Style ESA also protected

    (Schedule 5A of the regulations)

    https://www.legislation.gov.uk/uksi/2026/113/made

  • Ironside1990
    Ironside1990 Online Community Member Posts: 388 Pioneering

    If you're already on the system and claiming LCWRA, does this mean you're safe and will get the higher rate?

    It's shocking what the government are doing. Creating a two tier benefit will put new claimants in severe hardship and cause resentment for those who are already on the system.

  • Kimi87
    Kimi87 Online Community Member Posts: 8,309 Championing

    There has been a two tier system since April 2017. Anyone awarded LCW before that date gets extra money. Anyone awarded LCW afterwards doesn't.

    Labour carrying on Tory attitudes 👎🏻

  • Naden
    Naden Online Community Member Posts: 24 Contributor
    edited February 12

    My concern is that universal credit will be stopped for some reason, and will force disabled people to have to reapply from scratch. In this way, will they lose their current LCWRA , and therefore only get the halved new rate? Plus, they will lose their TP from legacy benefits? This could result in a loss of £600 a month for many disabled people, who are unable to work and make up the difference.

  • willow1
    willow1 Posts: 25 Contributor

    1948 National Assistance

    1966 Supplementary Benefit

    1988 Income Support

    Family Credit

    Working Family Tax Credit

    Old style JSA

    New style JSA

    Old style ESA

    New style ESA

    Incapacity Benefit

    DLA

    PIP

    UC

    and on and on and on….. each pointless change costing millions, each change for the 'good' of the poor and vulnerable, reduce unemployment, reduce poverty, support low income families, one parent families, take care of our elders, veterans etc.

    Hows that working out for everyone so far?

  • willow1
    willow1 Posts: 25 Contributor

    Hi @Marie12

    The expression if it ain't broke don't fix it springs to mind every time the government fiddle fannies about making changes and decisions about things they know nothing about, i.e real life. They either think we're too stupid to work out they're screwing people over or they really couldn't care less because they know there's precious little benefit recipients can do about it. There's a constant feeling of being 'Punished' for 'ending up on benefits'

    What I know, is that people who have been forced to migrate from IR ESA Support group to UC get a standard allowance and a LCWRA element and because for some reason UC amounts are less than the equivalent legacy benefit amounts, the difference between the two had to be bridged and the TP amount does that and that's all it does, until it gradually erodes, gobbling up any cost of living increase, year in, year out until the TP has eroded to zero or the benefit recipient has eroded to zero, whichever comes first. You do end up being worse off on UC because of how TP works and because it's allowed councils to abuse the system and claw extra revenue from people who have no extra income to cover their greedy demands leaving people under threat of bailiffs, fines, court action, eviction and even prison. All the government had to do was to leave things alone or replace legacy benefits with UC at the same payment rate = No need for TP. Simple.

    The government will now be paying less, councils will be getting more and guess who will be getting less! Why am I and thousands of others not surprised.

  • michael57
    michael57 Posts: 2,084 Championing

    Well it simply means until the people who were on uc only and not so much as people like yourself before migration to uc your tp goes down as much as there's goes up until its gone seems fair

  • willow1
    willow1 Posts: 25 Contributor

    @michael57 Hi thanks for your comment. The point I'm making is UC always stated that migrating from ESA to UC wouldn't make you worse off but as my post explains that's clearly not the case because with ESA the cost of living annual increase wasn't deducted so it was real cash, much needed and used for cost of living increases to rent, utilities and food etc, now, any increase is deducted pound for pound from the TP amount leaving no increase to help with higher rent and bills etc. Add the extra council tax that we're supposed to magic up from nowhere, then yes, we are worse off and no, that is neither fair or right. This isn't isn't about expecting more than legacy benefit amounts it's about the government stating, categorically, that we wouldn't be worse off and that's just not true is it.

    There are hundreds of people in exactly the same situation, we can't all be wrong and I can assure you we aren't. Please take notice of people who are experiencing these things rather than maybe listening to false info often peddled by the propaganda brigade. I don't mean this in a nasty way but really, having someone who may not be in the same situation or may not even be in receipt of benefits telling us what's 'fair' is a bit much.

  • michael57
    michael57 Posts: 2,084 Championing

    My point is when you were better off by a few hundred pounds a month as opposed to someone in similar situation but on uc only you were happy until you use up your tp you will still be better off the same will happen in the future with the new lcwra rules

  • Emilee
    Emilee Online Community Member Posts: 306 Empowering

    Unfortunately, they have always been clear that transitional protection would gradually erode, as it has with all previous benefit changes. This is neither new nor unexpected, and it is consistent with how they have handled every previous benefit reform.

  • willow1
    willow1 Posts: 25 Contributor

    I don't dont know what you're your talking about @michael57 were you part of migration from ESA to UC? I know for a fact that I am worse off since being migrated to UC and if you you read anybodies post who is in the same position they will say the same, it's a fact Michael, it's nothing to do with whether im happy about it or not, it's how it is. You're not making sense which makes me think you're commenting on my posts for reasons that make me feel rather wary.If your experience is that you are no worse off having been migrated from ESA to UC then great and please share how that happened. My post was about my experience and as I said, if you go onto almost any forum discussing this issue you will find hundreds of others who are experiencing the same, if you haven't been affected in the same way I'm pleased for you but that isn't my experience ok, my post, my experience, so let's move on yeah.

  • willow1
    willow1 Posts: 25 Contributor

    Hi @Emilee, they never said that cost of living benefit increases would be deducted pound for pound and they said nothing about the council tax situation, they were vague at best but basically we were misled because they weren't honest and they had their usual hidden agenda and they've allowed councils to take full advantage of the situation which they're they're doing by generating extra revenue from people who have no way of covering it. You're right, they're staying true to form.

  • michael57
    michael57 Posts: 2,084 Championing

    for the record i am not on and have never been on esa i believe when people were transferred from legacy benefits with transitional protection it would erode as uc caught up as stated on the gov website it is there in black and white for all to see a quick search also says that a high percentage did not understand or read it

  • willow1
    willow1 Posts: 25 Contributor

    @Michael57

    Ok Michael whatever. You clearly haven't understood what I've said, you're missing the point I'm making and I really can't be bothered arguing the toss with you. I AM worse off on UC than I was on ESA and I've very clearly explained why, it's a fact ok, not an opinion, a fact. The GOVERNMENT made a big noise about how people in my situation WOULD NOT be worse off, people in my situation ARE WORSE OFF, end of ok. If you still can't understand or accept this fact, put your point of view to the hundreds of other people who are in the same position as me, ( check out some of the other forums) because you will hear the same thing, are we all wrong? As you said, you aren't on ESA and have never been on ESA so please, move on to someone or something else ok.

  • willow1
    willow1 Posts: 25 Contributor

    @Michael57

    Oh well, if the government website says that it must be true 🙄 I'd Listen to the people having to live with the consequences of this mess not the people who created the mess.