The Department of Work and Pensions is rolling out major changes to the major benefits Universal Credit and Personal Independence Payment to balance the welfare system. If you receive any of the benefits, you can check the major reforms here.
DWP Universal Credit PIP Reforms 2026
The UK government earlier proposed some changes to the PIP benefit, but didn’t go ahead with them. However, now the Department for Work and Pensions has announced some changes for key benefits PIP, and Universal Credit.
The changes to the Universal Credit come into effect from April 2026, whereas the PIP reforms will come into effect from autumn 2026. The government says they are bringing the new reforms to make the welfare system sustainable and fairer for the claimants.
The new reforms under the Universal Credit were made under the Universal Credit Act 2025, which includes many changes, such as an additional standard allowance boost, and others.
What are the changes announced for Universal Credit?
You can check the major changes to the Universal Credit that will be enacted from April 2026 below:
- Standard allowance boost:
- The UC standard allowance will increase between 2026-27 and 2029-30 from April 2026, before additional elements are added to the allowance.
- The amount will rise from £91 to £98 for each week, which will increase the allowance for the next four years up to £725 for individuals aged 25 or above.
- UC Sickness Payout frozen or halved:
- The eligible citizens who have disability or health conditions limiting their ability to work receive the extra payment under the Limited Capability for Work and Work-Related Activity (LCWRA).
- With the new reform, the claimants of LCWRA will only receive a monthly payment of £271.26 from April 2026, which is half of the current payment.
- There will be no annual increment for the LCWRA, and it will be reduced so that by 2030, it will be scrapped fully and replaced with a new PIP element.
- New Severe condition category:
- The DWP will introduce the severe conditions category for Universal Credit, which will offer support to people with lifelong and serious disabilities or health conditions.
- People who meet the severe conditions category will receive the LCRWA payments, and they will also be exempt from the reassessments.
- The reports claim that around 200,000 claimants will meet the severe condition category.
What are the reforms for the PIP benefit?
Under the announced DWP reforms for PIP, here are the changes you can expect from next year:
- PIP Review:
- The DWP Minister will review the PIP benefit and is expected to provide the full report and recommendation by Autumn 2026.
- The review will have disabled people, clinicians, advocacy groups, policy experts, and MPs to ensure it is transparent.
- The review will examine the assessment procedures, daily living & mobility PIP components.
- PIP eligibility:
- A proposal has been made to change the PIP eligibility, where the claimants need to score at least four points in one daily activity for the daily living component.
- The proposal is removed from the legislation; however, the review is still carried out, so the change will depend on it.
- New health element:
- The LCWRA element will end by 2029, then the DWP plans to introduce a new health element that will be related to the PIP.
- The claimants who qualify for the daily living component will automatically be entitled to the new health element, meaning they do not have to go through a separate assessment.
How will the Universal Credit PIP reform affect the beneficiaries?
The DWP Universal Credit and PIP reforms will impact the beneficiaries in the following ways:
- The boosted UC standard allowance will benefit the recipients, but it may counterbalance the other components of UC, such as LCWRA.
- The cut in the LCWRA component will affect millions of beneficiaries who can’t work.
- The LCWRA high payments will be for only people with severe or lifelong disabilities or health conditions. The experts believe it will only help certain claimants, and others will receive the reduced payment.
- The PIP review could change the disability benefit based on the new elements or assessment; however, we can’t be certain until the review is publicly available.
The DWP has announced major reforms for the Universal Credit and PIP, on which many lives are dependent. The next year will bring many changes to these benefits that will determine the support.
Disclaimer: DWP Universal Credit and PIP reform details are for informational purposes only. Final policies and eligibility rules are set by the DWP.
