The Universal Credit Bill becomes law. Here are the changes to disability benefits you need to know about

On 9 July, MPs voted to pass the Universal Credit Bill, previously known as Universal Credit and Personal Independence Payment Bill for the final time. It will now become law.

What is the Universal Credit Bill?

In June, the Government introduced a bill to make changes to Universal Credit and Personal Independence Payment (PIP). A bill is a draft piece of legislation. It is the first step towards changing the law around how disability benefits work.

The bill has had two readings in Parliament. The bill has changed a lot since it was first introduced. This bill will now make no changes to PIP.

But the bill still makes big cuts to the health element of Universal Credit for future claimants. And to Income based Employment and Support Allowance (ESA).

We have been keeping our website updated with the latest information about the bill. You can read about the changes that were made to the bill at the second reading in our second blog.

We are disappointed to see that this bill will now become law. But we will still campaign to make the benefits system better for disabled people.

How your campaigning made a difference

Thanks to your campaigning, big changes were made to the bill as it made its way through Parliament.

Government dropped plans to restrict eligibility for the daily living part of PIP. And the Government also dropped plans to freeze the health element of Universal Credit for current claimants. This means that it would not have gone up with inflation every year. These plans would have been disastrous for disabled people. And driven many people into poverty.

The Government also committed £1.3 billion for employment support. This will be invested over the next few years. The Government will invest £800 million in 2025 / 2026. Then another £400 million in 2026 / 2027.

And, separately to the bill, Minister Stephen Timms will lead a review of the PIP assessment. This will be co-produced with disabled people. The Minister confirmed that the outcomes of this review will shape changes to PIP.

What happened at the third reading?

On 9 July, the bill went through Committee of the whole House where MPs debated the bill again. This was a chance for MPs to propose more changes to the bill. The bill also had its third reading on the same day. This was MPs’ last chance to vote for or against the bill.

The bill was classed as a money bill by the Speaker of the House of Commons. This means that the bill makes changes for public finance reasons, rather than because of social change. A money bill does not need the approval of the House of Lords. This means that the Universal Credit bill will become law much quicker.

Now that the bill has passed its third reading, it will become the Universal Credit Act 2025. But none of the changes to Universal Credit or Income based ESA will happen until April 2026.

How are disability benefits going to change?

The Universal Credit bill will make three important changes to disability benefits.

The Universal Credit standard allowance will increase.

The standard allowance for Universal Credit will go up more than inflation every year until 2029 / 2030. This means that single claimants who are aged 25 or over will receive £725 a year more by 2029 / 2030.

The health element of Universal Credit will be cut in half and frozen for new claimants from April 2026.

The health element is a part of Universal Credit. Only claimants who are put into the Limited Capability for Work and Work related Activity group (LCWRA) receive it.

For claimants who start claiming Universal Credit from April 2026, the health element will be worth around £217 a month. And it will not go up with inflation every year. This will not affect people who are currently getting the health element. But, if you stop claiming Universal Credit and start again after April 2026, you may get a lower health element than before.

Some new claimants with lifelong conditions could get a higher health element. These are known as Severe Conditions Criteria claimants. For these claimants, the health element will be worth around £423. It will also go up with inflation for these claimants.

The rates of Income related ESA will not go up with inflation.

ESA is a means tested benefit for people who cannot work because of disability. Components of ESA such as disability premiums will not go up with inflation every year. But New Style ESA will stay the same.

How does Scope feel about the bill?

We are pleased to see the Government abandon plans to restrict eligibility for PIP. And we are pleased that plans to cut the health element have been reduced. We welcome Minister Timms’ review into the PIP assessment as well. This is a chance for the Government to work with disabled people around changes to PIP.

However, the bill brings in disastrous changes to UC health for new claimants from next year. Most new health element claimants will receive half the amount of support that current claimants get. Disabled people already face higher costs for essentials like energy bills. Cutting benefits would push more people into poverty. They do not help disabled people get jobs.

What is Scope doing to challenge changes to disability benefits?

This bill may have passed its way into law. But Scope are continuing to challenge the Government around its plans for disability benefits.

Last month, we submitted a response to the Government’s consultation on other proposed changes to disability benefits. And we will continue to campaign to  make sure that disability benefits properly support disabled people. And that meaningful employment support is available to disabled people who want to work

We will be working with Minister Timms to make sure the PIP assessment review is properly co-produced. Most importantly, we want to see the review cover the things which matter most to disabled people. This includes the criteria that the claimants are assessed with. And how they are treated during assessments.

Scope is here to help

We understand that these changes will be worrying to many disabled people and their families.

Scope can provide practical information and support. You may find it helpful to visit:

Our information and advice pages

Our benefits webpage 

You can also share your thoughts and talk to people in similar situations to you on our online community.

If these changes are affecting your mental health, we encourage you to speak to your GP or reach out to support services like Mind or the Samaritans. Our website also offers practical advice on managing your mental health. Visit our mental health support page for guidance.