On February 10, 2026, the Department for Work and Pensions (DWP) confirmed a sweeping set of reforms to Universal Credit, Britain’s flagship means-tested benefit, with changes set to take effect from April 2026. The new legislation, introduced in Parliament this week, is part of a broader government push to overhaul welfare, rebalance the benefits system, and encourage more people back into work—while promising to maintain protections for those with the most severe health conditions.
One of the most significant and controversial changes targets the Universal Credit health element for new claimants. Starting in April, new applicants who qualify for this health-related support will see their monthly payment nearly halved—from the current £429.80 to £217.26. The government argues this move is necessary to address what it calls “perverse incentives” in the system that, until now, have resulted in individuals on Universal Credit for health reasons receiving more than double the amount paid to single jobseekers.
Existing claimants already receiving the health element, as well as those with severe or lifelong conditions and people nearing the end of life, will continue to receive the higher rate. According to the DWP, “No existing health claimants will lose out as a result of these changes.” The government insists this approach balances financial support with a renewed focus on helping those who can work to do so.
The rationale behind the reforms, as reported by BBC and The Express, is rooted in longstanding criticism of the welfare system’s structure. Ministers from the current Labour government have argued that the benefits system “we inherited was rigged with the wrong incentives and wrote people off instead of backing them.” Work and Pensions Secretary Pat McFadden stated, “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.”
Alongside the reduction in the health element for new claimants, the government is rolling out a package of support programs and increases to the standard Universal Credit rate. Almost four million households will see their Universal Credit payments rise by 3.8 percent from April, with other elements increasing by 2.3 percent. For a single person aged 25 or over, this translates to an estimated £295 extra this year, rising to £760 by the end of the decade—what the DWP describes as “the first sustained above-inflation increase to the benefit.”
To soften the impact of the health element cut and help more people move toward employment, the government is committing over £3.5 billion in tailored employment support by the end of the decade. This investment includes funding for 1,000 dedicated work coaches, who will provide voluntary, personalized assistance to tens of thousands of sick or disabled people. The Pathways to Work initiative is already underway, with more than 1,000 advisers now based in Jobcentres across England, Scotland, and Wales. The DWP expects 65,000 people to benefit from this support in the current financial year alone, and says “tens of thousands” have already taken up the offer.
Further support is coming through the expansion of the WorkWell and Connect to Work programs. WorkWell is being rolled out across England and is expected to support up to 250,000 people, while Connect to Work aims to provide personalized help for 300,000 individuals over the next five years. These efforts are central to the government’s “Plan for Change,” which aims to break down barriers to opportunity and get Britain working. With an estimated 2.8 million people currently out of work due to long-term sickness, ministers see these measures as vital to increasing workforce participation and reducing the welfare bill.
The government’s reforms come at a time of significant growth in Universal Credit claimants. According to data published by the DWP, the number of people receiving Universal Credit in Britain jumped by more than a million in 2025—the largest annual increase since the start of the pandemic. The total stood at a provisional 8.40 million in December 2025, up from 7.36 million a year earlier. Notably, this surge has been driven almost entirely by people not required to work, such as those in full-time education, over the state pension age, with a child under one, or considered to have no prospect of work. The number of claimants in work actually fell slightly over the same period.
As part of the reforms, the government has also confirmed that the migration from older “legacy benefits” to Universal Credit is on track to be completed by March 2026. Any claimants still on legacy benefits are due to be moved to Universal Credit in the coming months.
Financially, the government projects that the new measures will save taxpayers approximately £950 million by the 2030/31 fiscal year. Ministers say these savings are essential for delivering “fairness for working people and taxpayers alike.”
However, the reforms have not been without criticism. Disability equality charity Scope has voiced strong concerns, warning, “These cuts to Universal Credit will only make it harder for disabled people to get into work. The health element of Universal Credit only exists because it’s more expensive and often takes longer for disabled people to get into work. We urge the government to properly listen and engage with disabled people, to build a welfare system that supports disabled people and addresses the extra costs they face.”
Despite these criticisms, the government maintains that the changes will not affect current claimants and that those with severe or lifelong conditions will remain protected. They argue that the combination of increased standard allowances and expanded employment support will help more people move toward financial independence and reduce long-term reliance on benefits.
As the April deadline approaches, the DWP is expected to publish further details on how the changes will affect individual claimants. In the meantime, the debate over Universal Credit reform continues, with the government promising a welfare system that “rewards work and protects those unable to do so,” while advocacy groups caution that the cuts risk deepening hardship for some of Britain’s most vulnerable citizens.
For millions of households, the coming months will bring both new challenges and new opportunities, as the government’s welfare overhaul begins to reshape the landscape of support in the UK.