Welfare reforms aimed at rebalancing the benefits system and encouraging more people into employment advance today as Universal Credit legislation reaches Parliament. The current setup pays individuals on Universal Credit for health reasons more than twice the amount received by a single job seeker, without providing adequate support to transition toward work.
Key Changes Effective April
Starting in April, new claimants will receive a reduced Universal Credit health element of £217.26 per month, down from £429.80. Claimants with severe lifelong conditions, those nearing end of life, and all existing health-related recipients maintain the higher rate.
Boosted Employment Support and Standard Allowance
The government invests over £3.5 billion in employment support by decade’s end. Everyone impacted by these Universal Credit adjustments gains access to personalized assistance, including skills training to secure stable jobs and improve living standards.
Addressing cost-of-living pressures, nearly four million households on the standard Universal Credit rate benefit from the first sustained above-inflation increase. A single person aged 25 or over receives an extra £295 this year, rising to £760 by 2030, providing more financial support for job seekers and workers.
Work & Pensions Secretary Pat McFadden stated: “The benefits system was rigged with the wrong incentives and wrote people off instead of backing them. 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.”
Expanded Jobcentre Support
Over 1,000 Pathways to Work advisers now operate in Jobcentres across England, Wales, and Scotland, delivering tailored help to health benefit recipients previously without support. Tens of thousands have engaged, with 65,000 projected to benefit this financial year.
Success Story: Hayden’s Transformation
Hayden, who suffers severe nerve damage in his legs from an accident, spends mornings rebuilding strength to walk. Long dreaming of becoming a personal trainer but unable to afford training, he received crucial aid from a Pathways to Work adviser, including course placement and equipment funding. He starts his qualification this February.
Hayden shared: “My Pathways to Work adviser saw my potential, not my limitations. They found me the right course, and made sure I had everything I needed to succeed. I’m now training to become a Personal Trainer – something I never thought possible. This support has genuinely transformed my future.”
Broader Initiatives
WorkWell rolls out nationwide in England, aiding up to 250,000 individuals. Connect to Work offers personalized support for 300,000 over five years. With 2.8 million people sidelined by long-term sickness, these efforts form the core of plans to overcome barriers and boost employment.
The reforms, combining work incentives with reduced health elements for new claimants, project £950 million in taxpayer savings by 2030/31, promoting fairness for workers and contributors alike.
