Universal Credit reforms advance today (February 9) with legislation laid in Parliament, aiming to balance the benefits system and encourage more people into employment. The current framework provides health-related claimants with payments more than double those for single jobseekers, often without tailored support to enter the workforce.
Key Changes to Health Element Starting April
New claimants receive a reduced Universal Credit health element of £217.26 per month, down from the standard £429.80 rate. Exemptions apply to individuals with severe lifelong conditions, those nearing end of life, and all existing health claimants, ensuring continued support for the most vulnerable.
£3.5 Billion Investment in Employment Support
The government commits over £3.5 billion by the end of the decade to employment programs. Everyone impacted by these changes gains access to personalized assistance, including skills training to secure stable jobs and improve living standards, fostering workforce growth.
Above-Inflation Boost for Standard Allowance
Nearly four million households on the standard Universal Credit rate benefit from the first sustained above-inflation increase. A single person aged 25 or over receives an extra £295 this year, rising to £760 by decade’s end, providing more financial support for jobseekers and workers.
Work & Pensions Secretary Pat McFadden’s Statement
Work & Pensions Secretary Pat McFadden stated: “The benefits system we inherited was rigged with the wrong incentives and wrote people off instead of backing them. We are changing this. These reforms put more money in the pockets of working people on Universal Credit, while ensuring those who can work get the support they need to do so. By boosting the standard allowance and investing in proper employment support, we’re building a welfare system that rewards work and offers people a route to a better future.”
Pathways to Work Program Expansion
Over 1,000 Pathways to Work advisers now operate in Jobcentres across England, Wales, and Scotland, delivering personalized guidance to health-related benefit recipients previously without support. Tens of thousands have engaged, with 65,000 expected to benefit this financial year.
Hayden, who suffers severe nerve damage in his legs from an accident and builds strength daily to walk, dreamed of becoming a personal trainer but lacked funds. His Pathways adviser secured a suitable course and equipment funding. Hayden begins his qualification this February and said: “My Pathways to Work adviser saw my potential, not my limitations. They found me the right course, and made sure I had everything I needed to succeed. I’m now training to become a Personal Trainer – something I never thought possible. This support has genuinely transformed my future.”
Broader Support Initiatives
WorkWell rolls out across England, aiding up to 250,000 more individuals. Connect to Work targets 300,000 people over five years with customized assistance. These efforts address the 2.8 million people out of work due to long-term sickness, aligning with plans to remove barriers and boost employment.
The reforms, combining work incentives and reduced health elements for new claimants, project savings of £950 million by 2030/31, promoting fairness for workers and taxpayers.
