A refusal by ministers to back down on plans to cut health-related out of work benefits will mean people with disabilities and health conditions will be pushed “into poverty,” an influential group of MPs have warned.
A cross-party Commons committee has accused the government of pushing ahead with “discriminatory” benefit cuts which, they argue, will fail to encourage people into work.
The blistering criticism comes after the government rejected recommendations to delay cuts to sickness benefits until the full impact on people with health conditions is understood.
Ministers also refused to reconsider plans to ban under-22s from being able to claim health-related unemployment benefits.
The criticism from senior Labour MP and chair of the Work and Pensions Committee Debbie Abrahams lays the ground for another potential Commons battle with MPs.
A letter from the Committee asking ministers to reconsider cuts to disability benefits – personal independence payments (PIP) – was instrumental in the eventual government decision to shelve the reforms.
New claimants will have awards cut in half
And now Abrahams has vehemently criticised the decision not to do the same with reforms to out of work sickness benefits, known as Universal Credit (UC) health.
Under the reforms to UC health, new claimants assessed as having limited capability for work and work-related activity will see their awards halved from £423.27 to £217.26 from April 2026.
Ministers are also consulting on proposals to stop people from being able to receive UC health until they are 22-years-old.
The government said it is part of plans to tackle youth unemployment, but the Committee had argued young people with health conditions should still be entitled to help if they cannot work.
Abrahams said the committee “recognise[s] the compromises” made over the UC health reforms, but said MPs had raised outstanding concerns “that from April 2026, people with a new disability or health condition will receive half the financial support”.
“This is not only discriminatory, but without mitigations, will potentially push more people with disabilities and health conditions into poverty, exacerbating their condition and pushing them further away from the labour market,” Abrahams said.
“Addressing this properly could be a fiscal bonus to the Government too.”
£12.5bn could be saved with better back-to-work support
The MP said recent analysis – revealed by The i Paper – estimated that up to £12.5bn could be saved in government spending if the Department for Work and Pensions focused on more personalised, employment and health support, reducing the need for cuts.
This new modelling, which will be submitted to the Office for Budget Responsibility (OBR) ahead of the Budget, predicted significant savings from reforms to employment services without politically challenging welfare cuts.
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The Work and Pensions Committee carried out analysis on the government’s reforms to out of work benefits – part of wider plans to try to boost employment and reduce the welfare bill.
It urged the government to delay the reduction in UC health until it has carried more extensive analysis of the impact it will have on people.
In its response, the government said: “This change, along with a reduction in the UC health element for new claimants, addresses perverse incentives in the UC system and better encourages those who can work to enter or return to employment.
“An updated Impact Assessment for the Bill was published in July 2025. The new, lower UC health element will take effect on 6 April 2026. We will keep standard allowance rates under review.”
In response to calls for ministers to review the decision to delay access to UC health until the age of 22, the government said it was “considering” responses to its consultation – which closed on 30 June – and would “set out the policy direction in due course”.
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