Universal Credit claimants ‘protected’ if they meet 4 criteria | Personal Finance | Finance

The Universal Credit and Personal Independence Payment Bill was introduced in Parliament on Wednesday, outlining Labour’s proposed safeguards for the most vulnerable benefit recipients as eligibility criteria tighten, with many poised to lose out on their payments. Government figures indicate that 200,000 claimants will be “protected from future reassessment for Universal Credit entitlement” by being classified into a new group.

Dubbed the Severe Conditions Criteria group, this subset of claimants has been assured “peace of mind” by the government due to the severe health ailments. They’re also set to receive a greater sum for the Universal Credit health supplement, currently standing at £97 per week.

To qualify in the Severe Conditions Criteria group, officials have listed four key benchmarks for medical practitioners to consider during assessments. Claimants must satisfy all four conditions to be eligible.

These are:

• If the person’s level of function will always meet LCWRA criteria
• If the person’s condition will last for the rest of their life
• Is there no realistic prospect of recovery of function
• Has the condition been diagnosed by an appropriately qualified healthcare professional in the course of the provision of NHS services

Benefits and Work pointed out that the first criteria will mean people with conditions that fluctuate in severity aren’t eligible. Furthermore, conditions that may have treatment options such as transplants or surgeries won’t qualify.

The organisation also noted that the specific wording for the last criteria implies that diagnoses obtained through private doctors or consultants won’t be accepted.

These criteria, along with the new group, will be incorporated into the Universal Credit system from April 2026. The Bill also introduced the new rates for Universal Credit which are set to be implemented around the same period.

People currently receiving the health element will have their amount frozen at £97 a week until 2029/2030. However, new claimants from the 2026/2027 financial year will only receive £50 a week, which will also be frozen for the subsequent four years.

Official statistics indicate that these changes will result in approximately 2.25 million people already claiming the benefit losing an estimated average of £500 each year. Meanwhile, new claimants could lose out on an average of £3,000 per year.

Nonetheless, the government has also stated that an increase to the standard allowance, which every Universal Credit claimant receives, will put an average of £265 each year back into the pockets of 3.9 million households that are not receiving the health element.