The Department for Work and Pensions (DWP) is moving ahead with major reforms to the Universal Credit (UC) system, sparking concern among campaigners and disability advocates. As part of a broader welfare overhaul, six health conditions are at risk of having their Universal Credit health component slashed by £3,000 annually starting April 2026.
This cut would primarily affect people who are currently assessed as having Limited Capability for Work and Work-Related Activity (LCWRA)—a group that traditionally receives enhanced financial support under Universal Credit due to serious health issues.
Which Six Conditions Are Most at Risk?
According to anti-poverty charity Z2K, the following conditions are at greater risk of reduced support under the proposed UC health reforms:
| Health Condition | Why It’s At Risk |
|---|---|
| Autism | Often poorly assessed by work capability tests |
| Schizophrenia | Mental health assessments may underestimate the severity |
| Dementia | Cognitive decline may not be recognized early enough |
| Bipolar Disorder | Inconsistent symptoms can lead to unreliable assessments |
| Multiple Sclerosis (MS) | Fluctuating symptoms make it difficult to assess functional limitations |
| Parkinson’s Disease | Progressive but variable symptoms risk being misclassified |
These individuals could lose around £3,000 per year, a sum equivalent to £57.50 per week, which may push many into poverty or financial instability.
DWP’s Planned Changes to UC Health Component
Starting April 2026, the DWP will halve the UC health component for many claimants.
- The current LCWRA top-up is £423.27 per month
- The new proposed rate will be £217.26 per month
While those with severe or terminal illnesses will continue receiving full support, others may face reduced payments—even if their conditions are long-term or debilitating.
Who Will Still Be Protected?
- Existing claimants who already qualify for LCWRA
- New claimants diagnosed with terminal or severe conditions
However, newly sick or disabled people who do not meet the stricter criteria may receive less support, potentially by nearly 50%.
Government Response and Revisions
The Work and Pensions Committee, chaired by Debbie Abrahams, has expressed strong concerns. In May 2025, the committee wrote to the Secretary of State, urging a pause to the reforms and demanding the PIP and UC systems be co-produced with disabled people.
As a result:
- The Personal Independence Payment (PIP) reform proposals have been dropped
- A new review of PIP assessments will be led by Sir Stephen Timms
- However, the UC health component cuts remain in effect
Despite concessions, campaigners argue the reforms don’t go far enough, particularly when the government’s own data predicts that:
Around 50,000 people with newly developed health conditions will fall into poverty by 2030 due to reduced UC support.
The DWP’s reforms to the Universal Credit health component have raised serious concerns for thousands of vulnerable individuals. Those with complex, long-term health conditions such as Autism, MS, or Parkinson’s could see their annual benefits slashed by up to £3,000 beginning April 2026.
While some protections remain in place for the severely ill, the broad eligibility tightening could cause widespread financial strain. Advocates continue to push for fair assessments and the reversal of cuts that risk worsening poverty for the UK’s most at-risk populations.
FAQs
Which health conditions are most at risk of losing Universal Credit top-ups?
Autism, Schizophrenia, Dementia, Bipolar Disorder, MS, and Parkinson’s Disease are among the six key conditions likely to be affected.
How much could Universal Credit payments be reduced by?
From April 2026, the monthly LCWRA top-up may drop from £423.27 to £217.26, a loss of over £3,000 annually.
Who will still receive full health support under Universal Credit?
Claimants with severe or terminal conditions will remain eligible for the full UC health component after the reform.
