Ongoing benefit changes

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This advice applies across the UK.

The welfare benefits system is often subject to reform. We keep this page up-to-date with the changes that may affect the financial situation of families with disabled children.

What changes are planned and when?

In 2025, the government announced a number of changes to the benefits system planned over the next few years. Below we explain what the main changes are and when these are likely to happen.

The Government had also originally proposed changes to the qualifying criteria for Personal Independence Payment (PIP). These changes are not now going ahead. Instead, Sir Stephen Timms is carrying out a review of PIP and will report to the Government by autumn 2026.

Cutting the Universal Credit health element – April 2026

From 6 April 2026, the Universal Credit health element (also known as the limited capability for work and work-related activity element or LCWRA element) will be reduced for many new claimants. They will see this payment cut from £423 to £217 per month. This lower payment is also being frozen and will not increase with inflation for a four-year period.

Existing claimants and those who are terminally ill will continue to receive the higher payment.

New claimants can also receive the protected higher payment of the health element if they meet new severe conditions criteria. To meet the severe conditions criteria you must both:

• Have a life-long condition that a practitioner acting on behalf of the NHS has diagnosed.
• Be assessed as “constantly” meeting at least one of the LCWRA descriptors used in the work capability assessment. 

Who will be protected as a pre-2026 claimant?

To be protected as an existing claimant – a “pre-2026 claimant” – it is not enough to be getting Universal Credit before 6 April 2026.

Your Universal Credit also needs to include an entitlement to the health element that started before that date. Some parents will have to act now – see below.

What can I do to protect myself against the cut in the health element?

Whether there are any steps you can take to ensure that you are protected as a pre-2026 claimant will depend on your circumstances:

You are already on Universal Credit but have not yet submitted fit notes

If you are on Universal Credit and you’d like to be assessed for the health element for the first time, you can still submit fit notes and qualify for a health element. However, it is now too late to be treated as a pre-2026 claimant.

There is a three-month waiting period between submitting fit notes and your entitlement to the health element first beginning. So even if you submit fit notes before 6 April, your entitlement to the health element isn’t going to start until after that date. This means that you will not be protected as a pre-2026 claimant.

Your chances of getting the higher existing rate of the health element, rather than the new lower rate, will therefore depend on you meeting the severe conditions criteria.

You have health problems, but you are not getting Universal Credit yet

For most people, the deadline for making a claim for Universal Credit and being protected as a pre-2026 claimant was 5 January 2026. This is because there is a three-month waiting period between making your Universal Credit claim and first becoming eligible for a health element in your award.

However, there may be a longer deadline for some claimants. If you have already established LCWRA as part of credits-only claim for new-style ESA, then arguably you should be treated as a pre-2026 claimant. But this is so long as you claim Universal Credit on or before 5th April 2026.

If you are not treated as a pre-2026 claimant, your chances of getting the higher existing rate of the health element, rather than the new lower rate, will depend on you meeting the severe conditions criteria.

You are on Universal Credit and have established a limited capability for work only

You may be someone with health problems who gets Universal Credit, but who has been assessed as having a limited capability for work rather than a limited capability for work-related activity.

If your condition has deteriorated since your work capability assessment, it will be worth getting advice about whether you should ask for your capacity for work to be re-assessed. If both:

• You ask for this to happen before the end of the Universal Credit assessment period in which 5 April falls
• It results in a decision that you have LCWRA

You will be automatically entitled to the higher protected rate of the health element as a pre-2026 claimant.

Warning: Before asking for your capacity for work to be reassessed you should seek individual advice. You could be left worse off if Universal Credit instead reassess you as being fit to work.

For more information about cuts to the health element, see our Family Finance Team’s webinar.

Proposal to cut the Universal Credit health element for under 22s

The government has proposed scrapping the Universal Credit health element of Universal Credit for under 22s. This would see young adults with LCWRA only receive the standard health element, with no additional amounts for their disability. They would not receive the extra health element of Universal Credit until they reached the age of 22.

The government carried out a consultation on this proposal in summer 2025. It has yet to set out its final plans, although the Minister for Work and Pensions has suggested there would be exceptions for some groups of young people.

To find out more, see our webpage on our Universal Credit campaign against this cut. 

Raising the age at which you claim PIP to 18 – unconfirmed

The government has proposed raising the minimum age at which young people in England and Wales can claim PIP from 16 to 18. This would include raising the age at which young people on Disability Living Allowance (DLA) are invited to claim PIP. 

The government consulted on this proposal during the summer of 2025. It has yet to set out its final plans, including any date for this change to come into effect.

Other changes

Introduction of new Carer’s Additional Person Payment (Scotland only) – March 2026

A new payment is being introduced in Scotland of £520 per year (paid weekly) to carers in Scotland who are on Carer Support Payment but who care for more than one person. You can get a Carer’s Additional Person Payment for each additional disabled person you provide 20 hours or more care to each week.

Above-inflation increase in the standard Universal Credit allowance – from April 2026

As well as cutting the health element for most new claimants, the standard allowance of Universal Credit will see above-inflation increases in each year between April 2026 and 2030 for all claimants.

The standard allowance is a basic amount paid at one of two rates – depending on whether you are single or part of a couple – to all Universal Credit claimants.

Scrapping of the two-child limit – from April 2026

If you claim Universal Credit, you normally get an additional amount – a “child element” – for each dependent child in your household. However, families don’t currently get the element for a third or subsequent child who was born after 6 April 2017. This is the two-child limit, and it is being scrapped.

Once this rule is scrapped, many larger families will start to get higher Universal Credit payments from April onwards. However, we are worried that some families who currently receive a transitional element in their Universal Credit award will not see any increase in their overall income. This is because the extra child payments they get are likely to be deducted from the transitional protection they currently receive.

Extra help with childcare costs for larger families on Universal Credit – from April 2026

Currently the maximum amount of help a working family on Universal Credit can get with registered childcare costs is capped at £1768.94 per month for two or more children.

From April 2026, the government is increasing the maximum amount of help by £736.06 for each additional child in childcare. For example if you have three children in childcare, the maximum amount will be capped at £2,505 per month.

Increase in Carer’s Allowance earnings limit – from April 2026

The Carer’s Allowance earnings limit will increase from £196 per week to £204 per week

Read more about the earnings limit.

Changes to DWP health assessments – from April 2026

From April 2026, the Department for Work and Pensions (DWP)’s intends to carry out more Work Capability Assessment re-assessments. Alongside this, more PIP and Work Capability Assessments will take place via a face-to-face meeting with a health professional.

On a more positive note, there will be fewer people called for PIP reassessments where there has been no change in their need.

Cutting tax breaks under the Motability Scheme – from July 2026

From July 2026, vehicles leased through the Motability Scheme, or equivalent qualifying schemes, will be subject to VAT on any top-up “advance payment” for a more expensive vehicle. Insurance Premium Tax will also apply to vehicles leased through the scheme for the first time.

These changes are likely to make it more expensive for some to lease most Motability vehicles. However, these insurance changes won’t apply to vehicles designed for, or substantially and permanently adapted for, wheelchair or stretcher users.

Some “premium” car brands are also being removed from the scheme

Extension of free school meals to all Universal Credit claimants in England – from September 2026

Whether a family on Universal Credit qualifies for free school meals currently depends on household income.

From September 2026, all Universal Credit claimants in England will be eligible for free school meals regardless of their household income.

More generous earnings disregards in Housing Benefit – from Autumn 2026

For most people Housing Benefit has been scrapped and replaced by Universal Credit help with housing costs. However special rules mean that some tenants, such as those in temporary accommodation or some types of supported accommodation, continue to get Housing Benefit.

The earnings rules for Housing Benefit claimants are being changed from autumm 2026. This will allow working tenants still on Housing Benefit to have more of their earnings ignored. 

Right to try work – at some point in 2026/27

The government plans to introduce legislation ensuring that disabled people will have a right to try out employment, with any work they do not being seen as a change of circumstances.

This should ensure that working does not lead to either their disability benefits or their status as someone with a LCWRA for Universal Credit or Employment and Support Allowancec (ESA) being reassessed.

Scrapping the Work Capability Assessment – from 2028

The government still has plans to scrap the Work Capability Assessment altogether. This means that in the future, Universal Credit claimants’ right to a health element will be dependent on whether they qualify for PIP or Adult Disability Payment rather than whether they have established LCWRA.

We are waiting for more details about this planned change to the benefit rules.

Scrapping ESA and JSA – from 2028

The government intends to introduce a new contributory benefit to replace both contributory ESA and contribution-based Job Seeker’s Allowance (JSA). This new benefit will:

• Be time-limited.
• Not involve a health assessment.
• Require the claimant to have sufficient national insurance contributions/credits.
• Be available to claimants who have been self-employed as well as those who have been employed.

Current reviews

As well as the specific benefit changes mentioned above there are also two major reviews being carried out by government.

These may eventually lead to further changes in benefits for young disabled people.

Timms review of PIP

is a wide raging review of PIP being chaired by Sir Stephen Timms Minister for Social Security and Disability. The review will look at:

• The role of PIP in enabling disabled people to live independently and fully participate in society.
• Whether the current PIP assessment criteria effectively capture the impact of long-term health conditions and disability in the modern world.
• What any other evidence should be considered alongside the PIP functional assessment.
• How the PIP assessment provides access to other help in the benefits system and wider supports.

The Timms review is expected to report its findings in Autumn 2026.

The Milburn review

This is an independent review into rising youth inactivity being chaired by ex-health secretary Alan Milburn. It is intended to shape reforms that are already underway in relation to skills, health, employment support and benefits for young people.

It is expected to report its findings in Summer 2026.

Related information

Introduction to benefits

If you have a disabled child, or you are on a low-income or not working, you may be entitled to certain benefits…

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Universal Credit

Universal Credit is a new benefit for people of working age. It is paid both to people who are out of work…

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Changes in circumstances

Certain changes in circumstances can mean that the benefits you receive for your disabled child or for your family might change.

Read more