The Universal Credit Bill has passed its second reading. Here is everything you need to know

What is the Universal Credit Bill?

Last week, the Government introduced a bill to make changes to Universal Credit and PIP. A bill is a draft piece of legislation. It is the first step towards changing the law around how disability benefits work.

Last week we published a blog about the bill when it was first introduced. This tells you about what the Government were originally proposing. You can read this blog on our website.  

On 1 July, the bill had its second reading. Parliament voted to pass the bill which means it will now have its third reading next week.

The Government has now changed the proposals in the bill since its first reading. But it will still make cuts to the health element of Universal Credit for new claimants from next year.

We want to see the benefits system reformed for the better. But we won’t accept that making big cuts is the answer.

MPs will vote on these plans again in Parliament on 9 July 2025. This is another important moment to influence them.

Ask your MP to stop the cuts now.

We encourage you to contact your MP about the Universal Credit Bill to let them know what you think. And why they should vote against the bill on 9 July.

How your campaigning has made a difference so far

Thanks to your campaigning, the Government have backed down on a lot of the proposals in the original bill. These included:

Making it harder for disabled people to qualify for the Daily Living part of PIP.

At the moment, people who apply for PIP get points in their assessment based on how their condition affects them. These points come from a list of everyday tasks, called activities. These include things like preparing food or managing money. You need to score at least 8 points across these activities to get the Daily Living part of PIP.

Under the proposed changes, people would still need to score 8 points in total. But at least 4 of those points would need to come from one single activity.

Freezing the health element of Universal Credit. And cutting it for new claimants from April 2026.  

Disabled people who are unable to work get an extra amount of Universal Credit. This is called the ‘health element.’

For existing claimants, the health element is currently worth around £423 a month. But for new claimants from April 2026, the health element will be worth around £217. This is roughly half of what it is worth now. Freezing it means it will not go up with inflation every year.

Your campaigning is working. But we still need your support. We encourage you to get in touch with your MP to tell them why cutting disability benefits is the wrong choice.

What happened at the second reading?

After the bill had its first reading in Parliament, the government agreed to change its plans around Universal Credit. It also committed to £1 billion of funding for employment support upfront, rather than in smaller amounts over the next few years.

However, MPs still had concerns about the Government’s plans for PIP. During the debate, the Government agreed to remove plans to restrict eligibility for PIP from the bill. The Government will now look to make changes to PIP after a review of the PIP assessment has been completed. This is being carried out by the Minister for Social Security and Disability, Stephen Timms. The review will be co-produced with disabled people.

The Government also committed £300 million more for employment support. This is on top of the £1 billion already promised.

So what is in the bill now?

The bill will no longer make any changes to PIP. But it still sets out a lot of changes to disability benefits. These include:

Increasing the rate of the Universal Credit standard allowance.

This 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.

Cutting and freezing the health element of Universal Credit for claimants from April 2026.

For new claimants 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 will be 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.

Freezing the rates of income related ESA.

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. But New Style ESA will stay the same.

What comes next?

After these changes, MPs voted to pass the bill. The bill will now go to committee stage and have a third reading. These will both be on the same day, 9 July. MPs will consider amendments suggested for the bill. Then, MPs will vote again on the bill at the third reading.

What do these changes mean?

We were relieved to see that the Government has dropped plans to restrict eligibility for PIP. This would have meant hundreds of thousands of disabled people had their PIP cut. And pushed many into poverty. Now there will be no changes to PIP until the government has completed its review of the PIP assessment. Which we are pleased to see that the Government has committed to co-producing. This means the government will work with disabled people to examine how the PIP assessment is working.

We are also happy that the Government has committed more money upfront to help disabled people find work. This will mean the Government can invest more in employment support schemes.

However, the bill is still bringing in huge cuts to Universal Credit for disabled people.

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 the bill?

Our Cost of Cuts campaign calls on the Government to protect disability benefits.

We welcome the changes the Government have made so far. But they do not go far enough. We still want the Government to withdraw this bill and start again.

As the bill progresses, Scope will be working to ensure MP’s recognise the damaging impact these changes would have on disabled people. Scope is calling on MPs to vote against this bill at its third reading and support amendments to improve it.

How can I get involved?

Cuts to disability benefits are not inevitable. Your voice is important, and you can help us make a difference. Take action to save our lifeline.

MPs have another chance to stop the cuts by voting against the bill. You can help us get a clear message across to your MP: stop these cuts.

Ask your MP to vote against this bill and stop these cuts.

Scope is here to help

We understand that these proposed 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.