Universal Credit Act 2025 - Latest Updates (05.03.26)

Community_Scope
Community_Scope Posts: 2,319 Online Community Team
edited April 29 in Universal Credit (UC)

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

The Act ensures that the four rates of the Universal Credit standard allowance will rise above inflation from 2026/27 to 2029/30.

The Limited Capability for Work and Work-related Activity (LCWRA) rate is reduced to £217.26 per month for new claimants and frozen until 2029/30, except for protected claimants.

Key Provisions

  1. Standard Allowance Increases
    From April 2026, the monthly rates increase to:
    £338.58 for single claimants under 25
    £424.90 for single claimants aged 25+
    £528.34 for couples under 25
    £666.97 for couples aged 25+

  2. Reduction of LCWRA for New Claimants
    New claimants with a health condition or disability found to have LCWRA will receive £217.26 per month, frozen until 2029/30.

  3. Protection for Existing Claimants
    Claimants who declare a health condition or disability on or before 5 April 2026 and are found to have LCWRA will receive £429.80, even if the decision is made after 6 April 2026.
    For these claimants, the combined rate of the UC standard allowance and LCWRA will rise with inflation until 2029/30.

  4. Claimants Moving to UC from Legacy Benefits
    Those entitled to certain legacy benefits before 6 April 2026 will receive the higher LCWRA rate of £429.80 when they claim UC.
    Transitional Protection is assessed for claimants moving to UC, ensuring they do not lose entitlement.

  5. Protection for the Most Severely Ill
    Claimants meeting Severe Conditions Criteria or Special Rules for End of Life will receive the higher LCWRA rate, regardless of when they apply.
    These claimants will not be reassessed for their UC award, and their rates will rise with inflation until 2029/30.

  6. Process for Meeting Severe Conditions Criteria
    Assessment by a DWP healthcare professional is required to confirm lifelong conditions with no prospect of recovery.

  7. Process for Applying Special Rules for End of Life
    Confirmation from a healthcare professional is needed to fast-track claims under Special Rules for End of Life, awarding the highest LCWRA rate.

For further details, please refer to GOV.UK

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Comments

  • Mary_Scope
    Mary_Scope Posts: 4,849 Scope Online Community Children and Family Specialists

    Who gets affected by the cut?

    No one who currently gets LCWRA will be affected. The Act only applies to new claimants and claims.

     Claimants who get their decision about their UC award after 6 April will receive the new rates of the health element. There is currently about a 3 month backlog for WCA decisions. That means that, although the law officially starts in April, claimants who applied in January will get the new rate unless they meet the Severe Conditions criteria or special rules.

     The Right to Try work is also in effect. That means that existing claimants who move into work for 6 months or less, but then back onto LCWRA, will not be reassessed. But, if a claimants moves off of UC for more than 6 months and then goes back onto it, their application is treated as a new claim. They will be affected by the cut. 

    Severe Conditions Criteria

    The Act introduces new criteria to qualify for the higher rate of the health element. These state that a claimant must have a condition which "constantly" applies. Healthcare professionals have been issued with guidance about what this means. We're told that this will be shared publicly in "the autumn." But DBC members who have seen the guidance saw that:

    • The wording of the guidance is that “constantly…. relates to the fact that…. the person’s level of function will always meet LCWRA” at repeated assessments. As such, the activity would need to be carried out “reliably, safely, repeatedly and in a timely manner” for LCWRA not to apply. So fluctuating conditions would not be ruled out.
  • Stellar
    Stellar Community Member Posts: 491 Trailblazing

    The Establishment's democide continues in full force with that lower LCRWA rate. Disgusting.

    Also the minimum increase for the default rate is paltry. Needs at least £150 for all rates, and that includes restoring the uplift.

  • luvpink
    luvpink Community Member Posts: 4,901 Championing

    You are an existing claimant so surely any future changes shouldn't affect you when you are reassessed.

  • luvpink
    luvpink Community Member Posts: 4,901 Championing

    As far as I understand it existing claimants will not be affected by any future changes.

  • deelee
    deelee Scope Member Posts: 77 Empowering

    I know what you mean when you say about not sure who to trust. It is so confusing because first it was the Tories with all their changes, now Labour and all their tricky language and it all feels so up in the air - I mean as existing claimants, "being safe" I have questions about this. If we are reassessed then will we fall under new rules? and what about after 2029/2030 because the way I read it, it sounds like we are safe from future changes until 2029/2030.

    To make myself feel better, I remind myself it is in 4 years time and to take one day at a time and hopefully reassessments wont be as bad as feared.

  • deelee
    deelee Scope Member Posts: 77 Empowering

    I know what you mean - so many scary things on youtube about it …but at least we know that whatever we see on there - they cant know anymore than we do and I do my best to try and not take what I read or see - which is not an easy task. At least we all have each other on this platform to chat to, to keep us on the right track …. anyways - I hope you have a good evening :)

  • diceman24
    diceman24 Community Member Posts: 7 Listener

    Good evening all. I hear a lot of really bad stuff on YouTube about u/credit and other disability benefits it’s best like me not to really overthink and worry about what could happen or if it happens my opinion is I think the this government or any government is concerned about protecting the the most severe group who have life long and severe conditions it’s all about protecting the most sick people not so much in people who have mild or short term illness of which I agree with thank you for reading my opinion

  • Kimi87
    Kimi87 Community Member Posts: 8,775 Championing

    Id recommend marking such videos as "not interested" or don't recommend channel"

    This should stop YouTube making them most visible to you.

  • Ironside1990
    Ironside1990 Community Member Posts: 393 Pioneering

    I think i know who you're on about. I haven't watched a video of hers for ages now. It's probably for the best. People like that are getting off on frightening vulnerable people for views. It's best to not give them the time of day.

    I usually watch Frenchie and gaming videos.

  • Ironside1990
    Ironside1990 Community Member Posts: 393 Pioneering

    No. I used to have two, but i had to rehome them when my mam passed away.

  • SwiftFox
    SwiftFox Community Member Posts: 1,169 Championing

    Best way is to stop using youtube

  • Andi66
    Andi66 Community Member Posts: 1,436 Championing

    What qualifies as severe conditions? . Is it those that won't get better ? And how long does assessment work ? I had a wca last year just before I moved to uc

  • Andi66
    Andi66 Community Member Posts: 1,436 Championing

    I have copd, which you can't get better from. And this hypermobility syndrome disorder which is the same, as it genetic

  • deelee
    deelee Scope Member Posts: 77 Empowering

    And they get paid for making these youtubes that scare us all and as you rightly say none of us know what is going to happen. Bless you and hope you had a good day today :)

  • autisticluke1998
    autisticluke1998 Community Member Posts: 15 Listener

    I saw that reassessments backlog for some cases are nearly cleared and that they look like they will begin next month anyone else saw and it’s making me so worried I have level 2 autism and I keep thinking they will reassess me straight away from April and it’s making me have panic attacks I hate it so much

  • autisticluke1998
    autisticluke1998 Community Member Posts: 15 Listener

    hi

  • autisticluke1998
    autisticluke1998 Community Member Posts: 15 Listener

    I’m so worried I saw yesterday that reassessment backlog for cases will be cleared by end of month and that normal reassessment will start next month I have autism level 2 and I keep thinking they will reassess me in April straight away. I keep having panic attacks and I hate it please someone tell me what’s actually going on

  • luvpink
    luvpink Community Member Posts: 4,901 Championing
  • Ross1975
    Ross1975 Community Member Posts: 1,189 Championing
    edited March 9

    I recently got diagnosed with ADHD. When I was last assessed I don't think I mentioned anything about my ADHD symptoms and only mentioned the other issues that I have. If I get reassessed and I add new information like how my ADHD effects me and show them proof of my diagnosis could this then class me as a new claimant even if I keep my LCWRA status?

    Especially if the reason why I end up keeping my LCWRA status is not because of my original issues but now just because of my ADHD?