Health and disability benefits and employment support are changing.
Our Income Maximisation team have identified some of the changes to the UK Government’s ‘Pathways to Work’ Green Paper to explain what they mean for Scottish claimants.
Here are some key highlights of what is changing:
Universal Credit
- The Universal Credit standard allowance will go up each year in April from 2026 – 2029 by the September Consumer Prices Index of the previous year plus an uplift percentage of between 2.3 and 4.8%. This will benefit ALL clients receiving Universal Credit.
- The health-related element which is given to people awarded Limited Capability for Work and Work-Related Activity (LCWRA) will decrease to £217.26 per month for awards from April 2026 – down from the current £423.27 per month. This means someone starting the Work Capability Assessment process on or after 5th Jan 2026 is likely to be affected.
- The health element on Universal Credit will be frozen from April 2026 until April 2030.
- Clients with existing health element award before April 2026 will NOT have their health element reduced.
- Clients can get the higher LCWRA amount after April 2026 if they have a terminal illness or meet the ‘severe conditions criteria’.
- Clients meet the ‘severe conditions criteria’ if they would meet one of the current criteria for an award of LCWRA. The criteria must apply to them constantly and will do so for the rest of the claimant’s life.
- The Work Capability Assessment (UC health assessment) will continue for the time being. Any changes would require new legislation.
- The requirement to get at least 4 points in PIP for at least one daily living activity has been removed. Government may revisit this after Timms review – expected late 2026.
Changes to Personal Independence Payment (PIP) / Adult Disability Payment (ADP)
- A review by Steven Timms will start in autumn 2025 and should be concluded by autumn 2026. Changes to PIP do not affect ADP but any reduced funding for PIP could make Scottish government change ADP.
- Scottish government has indicated it will not introduce a 4-point minimum for ADP if the change is made to PIP.
- Any changes to PIP / ADP rules are not expected to be retrospective so won’t impact clients until their award is renewed.
Other changes that may still happen – requires new legislation
- Right to try – the principle that claimants will not face being reassessed if they try work. Expected from April 2026.
- Delay access to LCWRA / health element for under 22s – Young people will have full work search requirements regardless of disability or health conditions – expected from April 2027
- Scrap the Work Capability Assessment – Replace the WCA with the requirement to have a PIP award and score at least 4 points in any daily living activity of PIP – Expected from April 2028.
- Revised PIP assessment (could also affect ADP) – Changes to PIP from the Timms review would be introduced – Also expected from April 2028.
- Replacing New Style Employment Support Allowance and Jobseekers Allowance with ‘Unemployment Insurance’ – Proposal to have a time limited single contribution benefit with full work search requirements with easements for disabled people – Expected April 2028.
Some other key points to keep in mind
- Clients on income-based ESA and other legacy benefits are gradually being moved over to Universal Credit. They will get a ‘migration’ letter telling them when to claim. This is being ramped up and we are seeing more clients needing help with this. Clients moving over too early or too late can lose a significant entitlement.
- Clients getting Universal Credit and ADP currently do not need to worry about the upcoming changes. Their current entitlement is likely to be protected.
- These changes underscore the importance of making sure clients have access to everything they are entitled to. Having these entitlements in place before benefit changes happen can protect their entitlement once changes occur.
- Awareness and opposition of these proposed changes is working and could mean further changes are watered down or scrapped entirely.
Our Income Maximisation and Financial Inclusion service is available to all clients.