Universal Credit changes 2026 who loses £2,600 in disability shake up

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The change applies to new applicants only, but charities say it could signal deeper cuts ahead.

What’s changing – and who is affected

Under the new rules:

New claimants will receive £217.26 a month, down from £429.80

Existing claimants will keep the higher rate

The cut affects those assessed as having limited capability for work and work-related activity (LCWRA)

This group includes people with serious disabilities or long-term health conditions who are not expected to work. There are also concerns that anyone who has to stop their claim and reapply will be hit by this.

The government says the reforms will save £1 billion and help move more people into employment.

“Benefits are a lifeline” – charities sound alarm

Disability charities have reacted with deep concern, warning the cuts come at the worst possible time.

Evan John, Policy Advisor at Sense, said: “Benefits are a lifeline for disabled people, and at a time of increased anxiety about rising energy bills and other essentials, support should be being strengthened, not reduced.”

He also warned the government may be planning further cuts: “It is deeply worrying that the government appears to be laying the groundwork for future benefits cuts for disabled people aged 16 to 21, regardless of need.”

What happens next?

A wider review of disability benefits, including Personal Independence Payment (PIP), is ongoing. There are more details of that here.

Final recommendations are expected by autumn 2026

Further changes could still be introduced. You can have your say by getting in touch with the review team.

Ways to respond

Respond online

or

Email to:

[email protected]

Write to:

The Timms Review
Disability and Health Strategy Directorate 
Department for Work and Pensions
Floor Two 
Caxton House 
London
SW1H 9NA

Young disabled people could be hit next

One of the most controversial proposals is the potential removal of the health element entirely for disabled people aged 16–21.

Sense says this could have a “devastating impact”, especially for those with complex needs: “Scrapping this benefit will not help more young disabled people find work – instead it risks pushing them further into poverty and isolation.”

“Cuts will make work harder, not easier”

Other organisations also working directly with disabled people agree the reforms could backfire.

A spokesperson from disability charity Scope said: “These cuts to universal credit will only make it harder for disabled people to get into work.”

They added: “The health element of universal credit only exists because it’s more expensive and often takes longer for disabled people to get into work.”

“System Has Locked People Out of Work”

Ministers argue the current system discourages employment and needs reform.

Social Security Minister Sir Stephen Timms said: “The welfare system we inherited has for too long locked disabled people and people with long-term conditions out of work.”

He added: “We’re creating a welfare system that backs people to work and helps them build a better future.”

The government says it is also:

Increasing the standard Universal Credit allowance

Providing £295 extra this year to nearly 4 million households

Investing £3.5 billion in employment support

Recommended reading:

Latest figures show 2.7 million people are currently in the LCWRA category across Great Britain.

Many are not required to attend work-related interviews due to the severity of their conditions.

Campaigners argue cutting support risks increasing hardship without improving employment outcomes.


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