DWP Universal Credit cut from Monday means some get reduced payments

DWP Universal Credit cut from Monday means some get reduced paymentsThe new financial year is seeing changesCommentsMoneySteven Smith Content Editor00:01, 06 Apr 2026View 3 ImagesSocial security and disability minister Sir Stephen Timms(Image: WPA Pool, Getty Images)Welfare reforms introduced this week aim to overhaul a system that has "for too long locked disabled people and people with long-term conditions out of work", according to the Government. The changes target what ministers have labelled "perverse incentives", which they claim encouraged individuals to remain on benefits without adequate support to transition into employment.‌From Monday, new claimants for the health element of Universal Credit (UC) will receive a reduced rate of £217.26 per month. Universal Credit is a payment designed to assist with living costs, available to those in work on low incomes, as well as those who are out of work or unable to work.‌Those with the most severe, lifelong conditions, individuals nearing the end of life, and all existing UC health claimants will continue to receive the higher monthly rate of £429.80. The Government has stated the change will save taxpayers approximately £1 billion.‌Figures released last month revealed that 2.7 million people on UC had been assessed as having limited capability for work and work-related activity (LCWRA) across England, Scotland and Wales. Those falling into this category are not obliged to attend any interviews or undertake work-related activity.View 3 ImagesNew claimants will get less for one element(Image: John Lamb via Getty Images)The Government has vowed that its investment in tailored employment support can provide people with opportunities, helping them move into and remain in work "rather than leave people stuck on benefits".‌Also this week, the standard rate of UC will be increased, in what ministers have described as an effort to "bear down on the cost of living".This is set to resu...