Source · Select Committees · Work and Pensions Committee
Recommendation 6
6
Deferred
Implement further increases to Universal Credit standard allowance and delay UC health reduction for disabled people.
Recommendation
We recommend that the Government consider implementing further increases to the standard allowance over the life of the Parliament, in addition to those provided for in the Universal Credit Bill. We also call on the Government to delay the reduction in UC health until it has carried out an independent and comprehensive assessment of the impact the change could have on disabled people. (Recommendation, Paragraph 99)
Government response summary AI-generated
The government stated it is carefully considering responses to its Green Paper consultation on conditionality and employment support for disabled people and will share further details in due course, without committing to further increases in the standard allowance or delaying the reduction in UC health.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
The Universal Credit Act, which received Royal Assent on 3 September 2025, legislated for the first ever sustained, above inflation increase to the standard allowance, benefitting millions of people. This change, along with a reduction in the UC health element for new claimants, addresses perverse incentives in the UC system and better encourages those who can work to enter or return to employment. An updated Impact Assessment for the Bill was published in July 2025. The new, lower UC health element will take effect on 6 April 2026. We will keep standard allowance rates under review.
Read the full response on Parliament ↗