- From Monday, new claimants for the health element of Universal Credit will receive a lower monthly rate of £217.26, down from £429.80.
- The higher rate of £429.80 per month will be maintained for individuals with severe, lifelong conditions, those nearing the end of life, and all existing health element claimants.
- The government says that these reforms aim to encourage disabled people and those with long-term conditions into work, tackling “perverse incentives” to stay on benefits, and saving taxpayers approximately £1 billion.
- Alongside these changes, the standard rate of Universal Credit will be increased, providing around £295 extra annually for almost four million households.
- Plans to reform Personal Independence Payment (PIP) have been postponed, with a review currently seeking views and an interim update expected before autumn.
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