Westminster Policy News & Legislative Analysis

Universal Credit changes on 6 April: new health element rate

Government reforms to Universal Credit take effect from Monday 6 April 2026. Ministers say the package removes incentives that discouraged work, introduces new voluntary employment support, and is expected to reduce projected Universal Credit expenditure by around £1 billion. (gov.uk)

For new claims where a Work Capability Assessment determines limited capability for work and work‑related activity, a new monthly ‘health element’ is set at £217.26. In regulations this is the LCWRA element. Protected groups - pre‑2026 claimants, those meeting severe conditions criteria, and claimants who are terminally ill - continue on a £429.80 rate. (legislation.gov.uk)

Transitional rules define who counts as a ‘pre‑2026 claimant’. This includes people awaiting assessment before 6 April 2026, certain claimants awaiting reassessment, and some Employment and Support Allowance recipients who subsequently move to Universal Credit. These protections sit in new Schedule 5A to the Universal Credit Regulations 2013. (legislation.gov.uk)

The reform sits alongside statutory uplifts to the Universal Credit standard allowance from April 2026. Monthly rates rise to £338.58 (single under 25), £424.90 (single 25+), £528.34 (couple under 25) and £666.97 (couple 25+). These increases are implemented under the Universal Credit Act 2025 and reflected in the 2026 regulations. (legislation.gov.uk)

The Department for Work and Pensions states that close to four million households on the standard allowance will see a cash‑terms gain this year; for a single person aged 25 or over this is around £295, estimated to be roughly £110 above inflation. (gov.uk)

From Wednesday 8 April 2026, claimants with limited capability for work or work‑related activity will receive a Universal Credit journal notification explaining available help and offering an opt‑in to be contacted. If they choose, a Pathways to Work adviser will discuss personalised options and referrals. (gov.uk)

Delivery routes named in official material include Connect to Work (locally led supported employment) and WorkWell (integrated health‑and‑employment support). Connect to Work is profiled to support about 300,000 participants by the end of 2029/30, with peak annual volumes around 100,000 and delivery through clusters of local authorities. (gov.uk)

WorkWell is being rolled out across England with the aim of providing support to up to 250,000 people to stay in or return to work, following pilots that tested integrated work and health support through local systems. (gov.uk)

According to DWP, more than 65,000 people with limited capability for work and work‑related activity have already taken up the new voluntary support offer since March 2025, exceeding the department’s initial target. (gov.uk)

The reforms are accompanied by a wider employment support envelope of £3.5 billion. DWP materials emphasise that the support is voluntary and intended to provide personalised pathways rather than conditionality changes for those in the protected groups above. (gov.uk)

For practitioners, two operational dates matter. The new health element arrangements apply to assessment periods beginning on or after 6 April 2026, while opt‑in messaging to eligible claimants’ online accounts begins 8 April 2026. Payment calculations and protections are set out in the 2026 amendment regulations, which also amend the Universal Credit standard allowance table. (legislation.gov.uk)

Ministerial accountability for these changes sits with the Minister of State for Social Security and Disability. Sir Stephen Timms holds this brief and has framed the measures as backing people who can work while maintaining higher support for those with the most severe conditions. (gov.uk)