The UK Government has revealed a significant uplift in income for millions of households, with an annual increase of £725 expected. This move is part of sweeping welfare reform legislation advancing through Parliament, under the Government’s Plan to Change initiative. These reforms aim to enhance the standard of living nationwide by removing long-standing disincentives to work in the current welfare structure.
Historic Increase in Universal Credit Payments
This change marks the largest real-term permanent increase to out-of-work benefits since 1980. Specifically, the Universal Credit (UC) standard allowance for single adults aged 25 and over will rise above inflation, resulting in a £725 uplift by the 2029–2030 financial year, as confirmed by the Department for Work and Pensions (DWP).
The reforms will also provide critical protections for around 200,000 individuals living with severe, lifelong conditions, who are not expected to work and will be exempt from UC reassessments.
Legislation Progress and Legal Protections for Disabled People
The proposed legislation has passed a major milestone by clearing the House of Lords, and is continuing its journey toward Royal Assent. Once passed, it will establish legal safeguards for disabled individuals and those with health issues, allowing them to try employment without the risk of reassessment should their attempt to work be unsuccessful.
Gov.uk emphasizes:
“Alongside the Bill, disabled people and those with health conditions will have legal protections to try work without fear of reassessment.”
Statements from Government Leaders
Work and Pensions Secretary Liz Kendall highlighted the reforms’ commitment to fairness and progress:
“We are fixing a system that has too often trapped people in dependence. These reforms offer greater support for millions of households and allow disabled individuals to explore job opportunities without fear of losing their safety net. It’s about giving people a real chance for a better future.”
Support for Severely Disabled and Terminally Ill Claimants
The Government reassures that people with severe, lifelong disabilities or those who are terminally ill (with less than a year to live) will benefit from inflation-matched Universal Credit increases every year through 2029.
Furthermore, a ministerial review of the Personal Independence Payment (PIP) assessment is being conducted, led by Disability Minister Stephen Timms and developed in collaboration with disabled individuals. This review aims to ensure a more compassionate and effective evaluation process.
£3.8 Billion Investment in Employment Support
In addition to financial boosts, the Government has committed £3.8 billion to employment support initiatives throughout this parliamentary term. These funds will be directed toward customized job, health, and skills programs, helping people with disabilities and health issues to re-enter the workforce when ready.
Conclusion
These landmark welfare reforms are set to improve the lives of millions by offering increased financial support, encouraging employment among those able to work, and providing lasting security for the most vulnerable. With the largest rise in Universal Credit since 1980 and billions in employment investment, the Government’s Plan to Change represents a fundamental shift toward a fairer, more inclusive benefits system.
FAQs
1. Who will receive the £725 income boost?
Individuals receiving Universal Credit, particularly those aged 25 and over, will see their standard allowance permanently increase to reach a £725 annual gain by 2029–30.
2. Are disabled people required to take part in reassessments?
No. Those with severe, lifelong conditions who are unlikely to recover will be exempt from Universal Credit reassessments.
3. Will disabled people be forced to work under the new reforms?
No. The reforms include legal protections allowing disabled individuals to attempt work without the fear of reassessment if they cannot continue.
4. What is the purpose of the £3.8 billion employment investment?
The funding supports job, health, and training programs specifically designed to help people with disabilities or health conditions return to work when they’re ready.
5. Will Universal Credit rise with inflation for terminally ill recipients?
Yes. Current and new claimants with less than one year to live will see their payments rise in line with inflation each year until 2029.