Welfare Reform Update

If you’ve felt confused and frustrated by the government’s welfare changes, you’re not alone - the process has been anything but straightforward. Here’s where things now stand. The welfare reform Bill has completed its passage through Parliament and received Royal Assent, meaning it is now law. 

The proposed changes to PIP eligibility were paused and are not being taken forward for now. Instead, the government has committed to a wider review of the PIP assessment process, led by Sir Stephen Timms, with recommendations expected in Autumn 2026. This means that while immediate changes to eligibility have been held back, uncertainty remains about what future reforms could look like.

We know this lack of clarity is unsettling. That’s why we’ll continue to push for a system that properly supports people living with mental illness. 

The summary below sets out the key changes introduced from April 2026 under the Universal Credit Act 2025, alongside further reforms proposed in the government’s Pathways to Work Green Paper.

Work Capability Reassessments (WCA) will restart from April 2026

During the pandemic, regular WCAs were mostly paused. Now, the Government says they’ll switch them back on before the WCA is fully scrapped in 2028.

At first, reassessments will focus on people whose health may have changed, like people who are living with short-term conditions, as well as people who were eligible for LCWRA through the ‘Substantial Risk Criteria’ in their WCA. Later, more people could be called back for reassessment.

Changes to Universal Credit from April 2026

Universal Credit Standard Allowance
The UC standard allowance for new and existing claimants will increase. Meaning, a single person aged 25+ will have their UC standard allowance increase by £6. For example, it is £92 per week in 2025/26, and it will be £98 per week in 2026/27.

Universal Credit Health Element

• If you already receive the health element (LCWRA) by April 2026, your payment will stay frozen at £97/week until 2029/30.
• If you only start receiving it after April 2026, the new lower rate of £217.26 per month.
• If you get it after April 2026 and live with the most severe, lifelong conditions, you may be eligible for a new top-up premium and be exempt from future reassessments. This is still being considered by government.

The WCA will be scrapped from 2028/29

By 2028/29, the WCA will be scrapped altogether if the law gets passed in parliament - making the PIP assessment the only assessment for adult disability benefits. Instead:

• Eligibility for the UC health element will depend only on whether you receive the PIP Daily Living component (not on your ability to work).
• Instead of an assessment, you’ll be invited to a “Support Conversation”. The Government says these new Support Conversations will be delivered by someone ‘appropriately trained’, focused on goals, not what you can’t do, and flexible in timing, format, and frequency, and will offer a range of support if needed.
• For most people on Universal Credit with the Health Element, there will be a new “baseline expectation” that you have at least occasional support conversations about your goals and what help is available. They say this won’t mean you’re forced to look for or take jobs.

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