The Work and Pensions Committee led by Labour MP Debbie Abrahams warns in a new report disabled people could still be pushed into poverty as a result of the watered-down reforms
Keir Starmer must delay a cut to Universal Credit for new claimants, a new report by MPs warns today.
The Work and Pensions Committee says disabled people could still be pushed into poverty as a result of the watered-down reforms. Earlier this month the PM U-turned on plans to restrict eligibility for a key disability benefit — Personal Independence Payments (PIP).
But there will be changes to the health element of Universal Credit for new claimants. From April 2026 all existing and new claimants with severe or terminal conditions will be protected, the MPs said.
But they added other claimants assessed as having limited capability for work and work-related activity will see their awards halved — from £423.27 to £217.26 a month.
While welcoming the major U-turn on PIP last month, the MPs’ report said: “We remain critical, however, of the Government’s failure to properly assess the impact of the cut to UC health on poverty, health and labour force participation.
“For this reason, we urge it to delay the measure until it has had time to make such an assessment.”
Committee Chair Debbie Abrahams said: “We welcome the concessions that the Government made to the UC and PIP Bill (now the UC Bill). But there are still issues with these welfare reforms not least with the cut in financial support that newly sick and disabled people will receive.”
She added: “The Government’s own analysis published in March indicates that from next April approximately 50,000 people who develop a health condition or become disabled – and those who live with them – will enter poverty by 2030 as a result of the reduction in support of the UC health premium.”
“We recommend delaying the cuts to the UC-health premium, especially given that other policies such as additional NHS capacity, or employment support, or changes in the labour market to support people to stay in work, have yet to materialise.”
“We agree in a reformed and sustainable welfare system, but we must ensure that the wellbeing of those who come into contact with it is protected. The lesson learned from last month should be that the impact of policy changes to health-related benefits must be assessed prior to policy changes being implemented to avoid potential risks to claimants.”
Responding to the report, Nil Guzelgun from charity Mind, said: “We cannot build a fair and compassionate system by stripping away support from those who need it most. Real reform must start with listening, both to the evidence and to disabled people themselves.
“We urge the Government to pause these damaging plans and commit instead to a benefits system that protects people’s health, dignity and independence.”
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