The UK government has announced a review of Universal Credit (UC) to ensure it aligns with the objectives of reducing poverty and making work pay. This review focuses on the policy design and structure of UC, but specific details about potential changes or timelines have not been provided. ([fullfact.org](https://fullfact.org/government-tracker/universal-credit-review/?utm_source=openai))
In June 2025, the government introduced the Universal Credit and Personal Independence Payment Bill, proposing several changes:
-**Increased Standard Allowance**:
The standard allowance for UC claimants was set to rise above inflation over four financial years, aiming to be 4.8% higher by 2029/30.
- **Reduced Health Element**:
- The UC health element for most new claimants was to be halved from £432.27 to £217.26 per month, with this amount frozen until 2029/30. Existing claimants would see their health element frozen at current levels until 2029/30.
- These proposed changes sparked concerns among disability rights organisations, including Scope, which argued that reducing the health element could push more people into poverty. ([fullfact.org](https://fullfact.org/government-tracker/universal-credit-review/?utm_source=openai))
- In response to these concerns, the government amended the bill in June 2025. The revised bill, now known as the Universal Credit Bill, was passed by MPs in July 2025 and has become law. The amendments include:
- - **Protection for Existing Claimants**: The incomes of existing claimants, along with new claimants deemed to have the most severe and lifelong conditions, will be fully protected in real terms.
- While these changes aim to address concerns, debates continue about their effectiveness in reducing poverty and supporting those with disabilities. The government estimates that the welfare changes will result in 50,000 fewer individuals in relative poverty after housing costs. However, organisations like Scope remain cautious, emphasising the need for further support to prevent vulnerable individuals from falling into poverty. ([fullfact.org](https://fullfact.org/government-tracker/universal-credit-review/?utm_source=openai))
- As the review progresses, claimants need to stay informed about potential changes to Universal Credit and how they may impact individual circumstances.