A bill to Make provision to alter the rates of the standard allowance, limited capability for work element and limited capability for work and work-related activity element of universal credit and the rates of income-related employment and support allowance, and to restrict eligibility for the personal independence payment.
Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Universal credit¶
1 Standard allowance for tax years 2026-27 to 2029-30¶
Where the tax year is 2026-27, take the amounts of the standard allowance for tax year 2025-26.
Where the tax year is 2027-28, 2028-29 or 2029-30, take the amounts resulting from Step 2 for the previous tax year.
The table below sets out the relevant uplift percentage for tax years 2026-27 to 2029-30—
Tax year
Relevant uplift percentage
2026-27
2.3%
2027-28
3.1%
2028-29
4.0%
2029-30
4.8%
2 LCWRA element for tax year 2026-27¶
.pre-2026 claimant
£423.27
severe conditions criteria claimant
£423.27
claimant who is terminally ill
£423.27
any other claimant with limited capability for work and work-related activity
£217.26
3 Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30¶
4 Legacy employment and support allowance payments¶
Personal independence payment eligibility¶
5 Personal independence payment eligibility¶
(3) C has limited ability to carry out daily living activities where, having undergone an assessment— (a) C obtains a score of at least 8 points, but less than 12 points, in relation to daily living activities, and (b) at least 4 of those points were awarded for a single daily living activity. (4) C has severely limited ability to carry out daily living activities where, having undergone an assessment— (a) C obtains a score of at least 12 points in relation to daily living activities, and (b) at least 4 of those points were awarded for a single daily living activity. (5) Where— (a) C was entitled to the daily living component at the standard rate or the enhanced rate immediately before section 5(1) of the Universal Credit and Personal Independence Payment Act 2025 (which inserted this paragraph) came into force, (b) C continues to be so entitled until the next occasion on which it is determined whether C continues to have limited ability or severely limited ability to carry out daily living activities, and (c) on that occasion it is determined that C has neither limited ability nor severely limited ability to carry out those activities, but only as a result of C not meeting the condition in paragraph (3)(b) or (4)(b), C is to continue to be entitled to the daily living component at that rate.(6) But the continuation of that entitlement ceases— (a) immediately before the beginning of the first day (if any) on which C ceases to meet the prescribed conditions for the purposes of section 77(3) of the Act as to residence and presence in Great Britain (see Part 4 of these Regulations), (b) immediately before the first day (if any) on which C is entitled to the daily living component as a result of a subsequent determination, or (c) at the end of the period of 13 weeks beginning with the day on which the determination mentioned in paragraph (5)(c) was made.
Corresponding provision for Northern Ireland¶
6 Corresponding provision for Northern Ireland¶
Schedule 2 makes provision for Northern Ireland which corresponds to that made by the previous provisions of this Act.Short title¶
7 Short title¶
This Act may be cited as the Universal Credit and Personal Independence Payment Act 2025.Schedules¶
Schedule 11 — Amendments to the Universal Credit Regulations 2013 in connection with new amounts of the LCWRA element¶
;pre-2026 claimant has the meaning in regulation 27A(1);
.severe conditions criteria claimant has the meaning in regulation 40A(2);
;(a) a pre-2026 claimant, (b) a severe conditions criteria claimant, (c) terminally ill, or (d) any other claimant.
(b) where the LCWRA element for each of them is a different amount, the LCWRA element to be included is the higher amount.
27A. — Meaning of “pre-2026 claimant”
(1) For the purposes of regulation 27, a claimant with limited capability for work and work-related activity is a “pre-2026 claimant” if the claimant— (a) was entitled at any time before 6 April 2026 to an award of universal credit that included the LCWRA element, and (b) has been entitled to an award of universal credit that included the LCWRA element continuously from that time. (2) For the purpose of determining whether the claimant has been continuously entitled to an award of universal credit, no account is to be taken of any period of non-entitlement— (a) that begins because the financial condition in section 5(1)(b) or (2)(b) of the Act ceases to be met, and (b) that ends within the period of six months beginning with the day on which that condition ceased to be met.
40A. — Severe conditions criteria claimant
(1) A claimant is a “severe conditions criteria claimant” if it has been determined that the claimant is a severe conditions criteria claimant on the basis of an assessment under this Part. (2) A claimant is a severe conditions criteria claimant on the basis of an assessment under this Part if— (a) the claimant has limited capability for work and work-related activity on the basis of an assessment under this Part (see regulation 40(2)), and (b) at least one of the descriptors set out in Schedule 7 constantly applies to the claimant and will do so for the rest of the claimant’s life. (3) In assessing the extent of a claimant’s capability to perform any activity listed in Schedule 7, it is a condition that the claimant’s incapability to perform the activity arises— (a) in respect of descriptors 1 to 8, 15(a), 15(b), 16(a) and 16(b), from a specific bodily disease or disablement— (i) that the claimant will have for the rest of their life, and (ii) that has been diagnosed by an appropriately qualified health care professional in the course of the provision of NHS services, or (b) in respect of descriptors 9 to 14, 15(c), 15(d), 16(c) and 16(d), from a specific mental illness or disablement— (i) that the claimant will have for the rest of their life, and (ii) that has been diagnosed by an appropriately qualified health care professional in the course of the provision of NHS services. (4) A descriptor constantly applies to a claimant if that descriptor applies to the claimant at all times or, as the case may be, on all occasions on which the claimant undertakes or attempts to undertake the activity described by that descriptor. (5) In this regulation “NHS services” means— (a) health care services provided for the purposes of the health service continued under— (i) section 1(1) of the National Health Service Act 2006; (ii) section 1(1) of the National Health Service (Wales) Act 2006; (iii) section 1(1) of the National Health Service (Scotland) Act 1978; (b) health and social care within the meaning of the Health and Social Care (Reform) Act (Northern Ireland) 2009 provided for the purposes of the system promoted under section 2(1) of that Act.
;(ii) that a claimant is a severe conditions criteria claimant made on the basis of an assessment under this Part,
(4) If it has been previously determined— (a) on the basis of an assessment under this Part or under Part 4 or 5 of the ESA Regulations that the claimant does not have limited capability for work, or (b) on the basis of an assessment under this Part that the claimant is a severe conditions criteria claimant, no further assessment under this Part is to be carried out unless there is relevant evidence.(5) If it has been previously determined— (a) on the basis of an assessment under this Part or under Part 4 or 5 of the ESA Regulations that the claimant has limited capability for work, and (b) on the basis of an assessment under this Part that the claimant is not a severe conditions criteria claimant, no further assessment under this Part for the purposes of reviewing the determination that the claimant is not a severe conditions criteria claimant is to be carried out unless there is relevant evidence.(6) For the purposes of paragraphs (4) and (5) “relevant evidence”, in relation to a determination, means evidence to suggest that— (a) the determination was made in ignorance of, or based on a mistake as to, some material fact, or (b) there has been a relevant change of circumstances in relation to the claimant’s physical or mental condition.
Schedule 22 — Northern Ireland: corresponding provision¶
Standard allowance for tax years 2026-27 to 2029-30¶
Where the tax year is 2026-27, take the amounts of the standard allowance for tax year 2025-26.
Where the tax year is 2027-28, 2028-29 or 2029-30, take the amounts resulting from Step 2 for the previous tax year.
The table below sets out the relevant uplift percentage for tax years 2026-27 to 2029-30—
Tax year
Relevant uplift percentage
2026-27
2.3%
2027-28
3.1%
2028-29
4.0%
2029-30
4.8%
LCWRA element for tax year 2026-27¶
;pre-2026 claimant has the meaning in regulation 28A(1);
.severe conditions criteria claimant has the meaning in regulation 41A(2);
;(a) a pre-2026 claimant, (b) a severe conditions criteria claimant, (c) terminally ill, or (d) any other claimant.
(b) where the LCWRA element for each of them is a different amount, the LCWRA element to be included is the higher amount.
28A. — Meaning of “pre-2026 claimant”
(1) For the purposes of regulation 28, a claimant with limited capability for work and work-related activity is a “pre-2026 claimant” if the claimant— (a) was entitled at any time before 6 April 2026 to an award of universal credit that included the LCWRA element, and (b) has been entitled to an award of universal credit that included the LCWRA element continuously from that time. (2) For the purpose of determining whether the claimant has been continuously entitled to an award of universal credit, no account is to be taken of any period of non-entitlement— (a) that begins because the financial condition in Article 10(1)(b) or (2)(b) of the Order ceases to be met, and (b) that ends within the period of six months beginning with the day on which that condition ceased to be met.
.pre-2026 claimant
£423.27
severe conditions criteria claimant
£423.27
claimant who is terminally ill
£423.27
any other claimant with limited capability for work and work-related activity
£217.26
41A. — Severe conditions criteria claimant
(1) A claimant is a “severe conditions criteria claimant” if it has been determined that the claimant is a severe conditions criteria claimant on the basis of an assessment under this Part. (2) A claimant is a severe conditions criteria claimant on the basis of an assessment under this Part if— (a) the claimant has limited capability for work and work-related activity on the basis of an assessment under this Part (see regulation 41(2)), and (b) at least one of the descriptors set out in Schedule 7 constantly applies to the claimant and will do so for the rest of the claimant’s life. (3) In assessing the extent of a claimant’s capability to perform any activity listed in Schedule 7, it is a condition that the claimant’s incapability to perform the activity arises— (a) in respect of descriptors 1 to 8, 15(a), 15(b), 16(a) and 16(b), from a specific bodily disease or disablement— (i) that the claimant will have for the rest of their life, and (ii) that has been diagnosed by an appropriately qualified health care professional in the course of the provision of health and social care services, or (b) in respect of descriptors 9 to 14, 15(c), 15(d), 16(c) and 16(d), from a specific mental illness or disablement— (i) that the claimant will have for the rest of their life, and (ii) that has been diagnosed by an appropriately qualified health care professional in the course of the provision of health and social care services. (4) A descriptor constantly applies to a claimant if that descriptor applies to the claimant at all times or, as the case may be, on all occasions on which the claimant undertakes or attempts to undertake the activity described by that descriptor. (5) In this regulation “health and social care services” means— (a) health and social care within the meaning of the Health and Social Care (Reform) Act (Northern Ireland) 2009 provided for the purposes of the system promoted under section 2(1) of that Act; (b) health care services provided for the purposes of the health service continued under— (i) section 1(1) of the National Health Service Act 2006; (ii) section 1(1) of the National Health Service (Wales) Act 2006; (iii) section 1(1) of the National Health Service (Scotland) Act 1978.
;(ii) that a claimant is a severe conditions criteria claimant made on the basis of an assessment under this Part,
(4) If it has been previously determined— (a) on the basis of an assessment under this Part or under Part 4 or 5 of the ESA Regulations that the claimant does not have limited capability for work, or (b) on the basis of an assessment under this Part that the claimant is a severe conditions criteria claimant, no further assessment under this Part is to be carried out unless there is relevant evidence.(5) If it has been previously determined— (a) on the basis of an assessment under this Part or under Part 4 or 5 of the ESA Regulations that the claimant has limited capability for work, and (b) on the basis of an assessment under this Part that the claimant is not a severe conditions criteria claimant, no further assessment under this Part for the purposes of reviewing the determination that the claimant is not a severe conditions criteria claimant is to be carried out unless there is relevant evidence.(6) For the purposes of paragraphs (4) and (5) “relevant evidence”, in relation to a determination, means evidence to suggest that— (a) the determination was made in ignorance of, or based on a mistake as to, some material fact, or (b) there has been a relevant change of circumstances in relation to the claimant’s physical or mental condition.
Legacy employment and support allowance¶
Personal independence payment eligibility¶
(3) C has limited ability to carry out daily living activities where, having undergone an assessment— (a) C obtains a score of at least 8 points, but less than 12 points, in relation to daily living activities, and (b) at least 4 of those points were awarded for a single daily living activity. (4) C has severely limited ability to carry out daily living activities where, having undergone an assessment— (a) C obtains a score of at least 12 points in relation to daily living activities, and (b) at least 4 of those points were awarded for a single daily living activity. (5) Where— (a) C was entitled to the daily living component at the standard rate or the enhanced rate immediately before paragraph 4(1) of Schedule 2 to the Universal Credit and Personal Independence Payment Act 2025 (which inserted this paragraph) came into force, (b) C continues to be so entitled until the next occasion on which it is determined whether C continues to have limited ability or severely limited ability to carry out daily living activities, and (c) on that occasion it is determined that C has neither limited ability nor severely limited ability to carry out those activities, but only as a result of C not meeting the condition in paragraph (3)(b) or (4)(b), C is to continue to be entitled to the daily living component at that rate.(6) But the continuation of that entitlement ceases— (a) immediately before the beginning of the first day (if any) on which C ceases to meet the prescribed conditions for the purposes of Article 82(3) as to residence and presence in Northern Ireland (see Part 4 of these Regulations), (b) immediately before the first day (if any) on which C is entitled to the daily living component as a result of a subsequent determination, or (c) at the end of the period of 13 weeks beginning with the day on which the determination mentioned in paragraph (5)(c) was made.
Footnotes
- 1
Section 2
- 2
Section 6