The Spring Statement 2025 has brought a sweeping wave of changes to the UK’s Universal Credit and disability benefits systems.
These new measures are aimed at modernizing welfare, tightening eligibility criteria, and encouraging more people into the workforce—while also attempting to control rising government spending.
Key Universal Credit Changes
One of the most significant announcements involves an overhaul of Universal Credit (UC). The government will gradually introduce changes between 2026 and 2030, impacting millions of current and future claimants.
- Standard Allowance Increase
From April 2026, the standard allowance for single UC claimants aged 25 or over will rise from £92 to £106 per week by 2029-30, helping adjust to inflation and increased living costs. - Health Element Reduction for New Claimants
From the same date, new claimants of the UC health element will see payments drop from £97 to £50 per week. This change is expected to affect hundreds of thousands of people entering the system in future years. - Frozen Rates for Existing Claimants
Those already receiving the UC health component will have their payment frozen at £97 per week, with no yearly increase through 2029-30. - Age Threshold Adjustment
A consultation is expected to raise the minimum age for receiving the UC health top-up to 22, promoting employment and education among younger adults.
Personal Independence Payment (PIP) Adjustments
Disability benefit reforms will tighten Personal Independence Payment (PIP) eligibility:
- From November 2026, claimants will be required to score at least four points in one single daily living activity (such as dressing or meal prep) to qualify for the daily living component.
- The adjustment may result in 800,000 to 1.2 million individuals losing eligibility, with an average annual loss of £4,200 to £6,300 per person.
Work Capability Assessment Abolished
By 2028, the Work Capability Assessment (WCA) will be completely abolished and replaced with a simplified, single-assessment model. This new system will primarily evaluate the functional impact of a person’s condition on daily living, rather than job capability alone.
New Unemployment Insurance Scheme
A new Unemployment Insurance benefit will be introduced for those with recent employment history:
- It will replace Jobseeker’s Allowance (JSA) and Employment and Support Allowance (ESA).
- Paid at £138 per week, it will provide short-term, non-means-tested support to help individuals transition between jobs.
| Benefit Area | Change | Effective Date | Impact |
|---|---|---|---|
| Universal Credit Allowance | £92 → £106/week (single claimants 25+) | April 2026 | +£14/week |
| UC Health Element (New) | £97 → £50/week | April 2026 | ~£2,500/year reduction |
| UC Health Element (Existing) | Frozen at £97/week | April 2026 | No increase through 2029 |
| PIP Eligibility | 4-point rule for daily living activity | November 2026 | 800K–1.2M may lose eligibility |
| Work Capability Assessment | Abolished; replaced with simplified model | By 2028 | Less stressful process |
| Unemployment Insurance | New £138/week non-means-tested support | TBD | Limited-time benefit for recently employed |
The Spring Statement 2025 introduces landmark changes to the UK’s Universal Credit and disability benefits systems.
With increased standard rates, redefined eligibility rules, and a shift toward promoting self-sufficiency, the government aims to shape a more efficient and sustainable welfare model.
However, the financial impact on millions—especially disabled individuals—will be significant. It’s vital for current and future claimants to stay informed and understand how these reforms may affect them.
FAQs
Who benefits from the Universal Credit increase?
All single UC claimants aged 25+ will benefit from the rise in the standard allowance, reaching £106/week by 2029.
Will existing UC recipients lose their health component?
No, but their rate will be frozen at £97/week without annual increases.
What is the new rule for PIP eligibility?
Starting November 2026, claimants must score four points in one specific daily living activity to qualify for the PIP daily living rate.