Source · Select Committees · Work and Pensions Committee
Recommendation 5
5
Deferred
Welcomed UC standard allowance increases, but significant reductions for new claimants are concerning.
Conclusion
We are sympathetic to the intention behind the changes to UC rates and we agree with the importance of increasing the standard allowance. As such, we warmly welcome the desperately needed increases in the standard allowance, although we hope the Government will give serious consideration to further increases before the end of the Parliament. The Minister gave us reason to think he was keeping an open mind on this. We also welcome the decision not to freeze UC health for existing claimants. We remain concerned, however, that the significant reduction in UC health for new claimants after April 2026 will push many disabled people further into poverty and away from the labour market, even with the increase in the standard allowance. (Conclusion, Paragraph 98)
Government Response Summary
The government stated it is considering responses to its Green Paper consultation on raising the age for Universal Credit Health Element access and will set out its policy direction in due course, rather than directly addressing concerns about the reduction in UC health for new claimants.
Government Response
Deferred
HM Government
Deferred
We welcomed views on raising the age someone can access the Universal Credit Health Element to 22, as part of our Green Paper consultation, which closed on 30 June. We are considering the responses to this consultation, and we will set out the policy direction in due course.