The UK government has officially confirmed its plans to finalize the migration of claimants on income-related Employment and Support Allowance (ESA) to Universal Credit by March 2026. This transition will involve moving ESA claimants to the Universal Credit Health Element, ensuring that they continue to receive essential support without disruption.
The Department for Work and Pensions (DWP) aims to provide a smooth transfer process while maintaining necessary support structures. According to reports from DevonLive, these changes are part of broader welfare reforms. However, the DWP has not yet revealed full details regarding the specifics of these adjustments or their timeline.
Health Element Changes for Disabled Claimants
Sir Stephen Timms, Minister for Social Security and Disability, responded to a query from Labour MP Amanda Martin about whether disabled claimants receiving Personal Independence Payment (PIP) and legacy work-related benefits would be treated as new claimants for the purposes of the proposed changes to the Universal Credit Health Element.
Timms clarified that the DWP plans to mirror the changes made to ESA rates when migrating claimants to Universal Credit, protecting them from income reductions.
The Universal Credit Bill and Its Impact on Welfare
The DWP has outlined significant reforms in the Universal Credit Bill, which seeks to address the imbalance within the welfare system. These reforms include a permanent increase to the Universal Credit standard allowance, which will rise above inflation, reaching £725 by 2029/30 for a single person aged 25 or over.This increase represents the highest permanent real-terms rise in out-of-work support since 1980.
Key reforms under the Universal Credit Bill
Among the key reforms are:
- Ensuring all current recipients of the Universal Credit health element and new claimants who meet the Severe Conditions Criteria or qualify under the Special Rules for End of Life (SREL) will receive the higher health payment after April 2026.
- Increasing the Universal Credit standard allowance above inflation for the next four years, estimated to be worth £725 by 2029/30 for a single adult aged 25 or over.
- Reducing the health top-up for new claims to £50 per week from April 2026.
- Exempting those with severe, lifelong conditions from reassessment.
These changes are designed to address dependency issues within the welfare system.
Right to Try Guarantee: Helping Disabled People Return to Work
The DWP has also introduced the “Right to Try Guarantee,” which allows disabled individuals to return to work without the fear of being reassessed if their employment attempt is unsuccessful.
The Universal Credit Bill includes provisions to safeguard those with the most severe disabilities, such as the 200,000 people in the Severe Conditions Criteria group. These individuals will not face reassessment and will see their standard and health allowances rise in line with inflation from 2026/27 to 2029/30.
