Work and Pensions Committee publishes Pathways to Work report raising concerns about UC health cuts

The Work and Pensions Committee published its Pathways to Work report on 29 July 2025, raising concerns that planned cuts to the health component of Universal Credit (UC health) will push disabled people into poverty¹. The committee repeated its call to delay the planned cuts until the full impact of the changes is better understood¹.

Under the planned reforms, from April 2026, claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26¹. All existing claimants and new claimants with severe or terminal conditions will be protected¹. The committee said it welcomed the intent to safeguard these people, but raised concerns that some conditions, particularly serious mental health conditions, might not be included under the severe condition criteria, and that this also applies to people with fluctuating conditions¹. It also asked the Secretary of State why an assessment of safeguarding risks had not been conducted before the Green Paper was published¹.

The committee wrote to the Secretary of State in May calling for a pause of the planned reforms to UC health and Personal Independence Payments (PIP)¹. The government subsequently dropped all the PIP proposals and agreed to co-produce a new PIP assessment process with disabled people and their organisations in a review led by Sir Stephen Timms¹.

Committee Chair Debbie Abrahams said:

She added that the government's own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled, and those who live with them, will enter poverty by 2030 as a result of the reduction in support of the UC health premium¹. She said the committee recommends delaying the cuts to the UC health premium, especially given that other policies such as additional NHS capacity, employment support, or changes in the labour market to support people to stay in work have yet to materialise¹.

Why it matters for households

The changes affect people claiming Universal Credit who are assessed as having limited capability for work and work-related activity, but who do not fall under the severe or terminal conditions protection. For those claimants, the health component would fall from £423.27 to £217.26 from April 2026¹. Existing claimants and new claimants with severe or terminal conditions are protected¹. The committee's concern is that some serious mental health conditions and fluctuating conditions may not meet the severe condition criteria, leaving those claimants exposed to the reduction¹. The government's own analysis, published in March, estimates that approximately 50,000 people who develop a health condition or become disabled, and those who live with them, will enter poverty by 2030 as a result of the reduction in support¹.

What happens next

The committee has recommended delaying the cuts to the UC health premium¹. The government has not responded to that recommendation in the report. The UC health reforms are due to take effect from April 2026¹. The PIP proposals have been dropped, and a review of the PIP assessment process led by Sir Stephen Timms will co-produce a new process with disabled people and their organisations¹.