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Reform history

Universal Credit Act 2025

2 versions · 2025-09-03

2026-04-06

Universal Credit Act 2025

View changes Text at this date

Changes on 2026-04-06

@@ -6,7 +6,7 @@

##### 1

- (1) The Secretary of State must exercise a relevant power in order to secure that the amounts of the standard allowance for tax years 2026-27 to 2029-30 are at least the amounts calculated for each tax year in accordance with [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/22/section/1/2/enacted).

- (2) The minimum amounts of the standard allowance for a tax year are calculated as follows—

@@ -29,7 +29,7 @@

- (5) Subsections (1) and (2)(c) of section 150 of the [Social Security Administration Act 1992](https://www.legislation.gov.uk/ukpga/1992/5) (annual up-rating of benefits) do not apply, in the tax years ending with 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, to any amount of the standard allowance.

- (6) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/1/enacted)—

- (6) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/1/2026-04-06)—

- (a) “*consumer prices index*” means the all items consumer prices index published by the Statistics Board;

@@ -43,7 +43,7 @@

- (d) the standard allowance “for” a tax year means the standard allowance applicable for any assessment period commencing on or after the first Monday of that tax year and before the first Monday of the following tax year, and for this purpose “*assessment period*” has the same meaning as in Part 1 of [that Act](https://www.legislation.gov.uk/ukpga/2012/5).

- (7) In this section and sections [3](https://www.legislation.gov.uk/ukpga/2025/22/section/3/enacted) to [5](https://www.legislation.gov.uk/ukpga/2025/22/section/5/enacted)—

- (7) In this section and sections [3](https://www.legislation.gov.uk/ukpga/2025/22/section/3/2026-04-06) to [5](https://www.legislation.gov.uk/ukpga/2025/22/section/5/2026-04-06)—

- (a) “*tax year*” means the 12 months beginning with 6 April in any year;

@@ -64,9 +64,9 @@

- (b) in the existing row, for “limited capability for work and work-related activity” substitute “pre-2026 claimant, severe conditions criteria claimant or claimant who is terminally ill”.

- (2) [Schedule 1](https://www.legislation.gov.uk/ukpga/2025/22/schedule/1/enacted) makes further amendments to the [Universal Credit Regulations 2013](https://www.legislation.gov.uk/uksi/2013/376) in connection with the amendments made by [subsection (1)](https://www.legislation.gov.uk/ukpga/2025/22/section/2/1/enacted).

- (3) [This section](https://www.legislation.gov.uk/ukpga/2025/22/section/2/enacted) and [Schedule 1](https://www.legislation.gov.uk/ukpga/2025/22/schedule/1/enacted) come into force on 6 April 2026 and have effect in relation to assessment periods commencing on or after that date, and for this purpose “*assessment period*” has the same meaning as in Part 1 of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5).

- (2) Schedule 1 makes further amendments to the [Universal Credit Regulations 2013](https://www.legislation.gov.uk/uksi/2013/376) in connection with the amendments made by subsection (1).

- (3) This section and Schedule 1 come into force on 6 April 2026 and have effect in relation to assessment periods commencing on or after that date, and for this purpose “*assessment period*” has the same meaning as in Part 1 of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5).

#### Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30

@@ -74,7 +74,7 @@

- (1) Subsections (1) and (2) of section 150 of the [Social Security Administration Act 1992](https://www.legislation.gov.uk/ukpga/1992/5) (annual up-rating of benefits) do not apply, in the tax years ending with 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, to the LCWRA element or the LCW element.

- (2) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/3/enacted)—

- (2) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/3/2026-04-06)—

- (a) “*the LCWRA element*” has the meaning given by regulation 27 of the [Universal Credit Regulations 2013](https://www.legislation.gov.uk/uksi/2013/376);

@@ -84,7 +84,7 @@

##### 4

- (1) Where it is necessary in order to achieve the result in [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/22/section/4/2/enacted) for any of the tax years 2026-27 to 2029-30, the Secretary of State must exercise the power in section 9(2) or 12(3) of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5) to increase—

- (1) Where it is necessary in order to achieve the result in [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/22/section/4/2/2026-04-06) for any of the tax years 2026-27 to 2029-30, the Secretary of State must exercise the power in section 9(2) or 12(3) of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5) to increase—

- (a) the protected LCWRA amount for that tax year, or

@@ -96,17 +96,17 @@

- (b) the relevant CPI percentage for the current tax year.

- (3) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/4/enacted)—

- (3) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/4/2026-04-06)—

- (a) “*the protected LCWRA amount*” means the amount of the LCWRA element that applies to a pre-2026 claimant, a severe conditions criteria claimant or a claimant who is terminally ill (within the meanings of the [Universal Credit Regulations 2013](https://www.legislation.gov.uk/uksi/2013/376));

- (b) “*the LCWRA element*” has the meaning it has in [section 3](https://www.legislation.gov.uk/ukpga/2025/22/section/3/enacted);

- (b) “*the LCWRA element*” has the meaning it has in [section 3](https://www.legislation.gov.uk/ukpga/2025/22/section/3/2026-04-06);

- (c) “*the standard allowance*” means the allowance to be included in an award of universal credit under section 9(1) of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5);

- (d) reference to an amount or allowance “for” a tax year means the amount or allowance applicable for any assessment period commencing on or after the first Monday of that tax year and before the first Monday of the following tax year, and for this purpose “*assessment period*” has the same meaning as in Part 1 of [that Act](https://www.legislation.gov.uk/ukpga/2012/5).

- (4) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/4/enacted) and in [section 5](https://www.legislation.gov.uk/ukpga/2025/22/section/5/enacted)—

- (4) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/4/2026-04-06) and in [section 5](https://www.legislation.gov.uk/ukpga/2025/22/section/5/2026-04-06)—

- (a) the “relevant CPI percentage” for a tax year is the percentage by which the consumer prices index for the September before the start of the tax year is higher than it was for the September before that (or 0% if it is not higher);

@@ -116,7 +116,7 @@

##### 5

- (1) [Section 1](https://www.legislation.gov.uk/ukpga/2025/22/section/1/enacted) applies in relation to the amounts of the ESA IR personal allowance for tax years 2026-27 to 2029-30 as it applies in relation to the amounts of the standard allowance for those tax years, but as if the reference to the power in section 9(2) of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5) were to the power in section 4(2)(a) of the [Welfare Reform Act 2007](https://www.legislation.gov.uk/ukpga/2007/5).

- (1) [Section 1](https://www.legislation.gov.uk/ukpga/2025/22/section/1/2026-04-06) applies in relation to the amounts of the ESA IR personal allowance for tax years 2026-27 to 2029-30 as it applies in relation to the amounts of the standard allowance for those tax years, but as if the reference to the power in section 9(2) of the [Welfare Reform Act 2012](https://www.legislation.gov.uk/ukpga/2012/5) were to the power in section 4(2)(a) of the [Welfare Reform Act 2007](https://www.legislation.gov.uk/ukpga/2007/5).

- (2) Subsections (1) and (2) of section 150 of the [Social Security Administration Act 1992](https://www.legislation.gov.uk/ukpga/1992/5) (annual up-rating of benefits) do not apply, in the tax years ending with 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, to the following sums—

@@ -126,7 +126,7 @@

- (c) the ESA IR work-related activity component.

- (3) Where it is necessary in order to achieve the result in [subsection (4)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/4/enacted) for any of the tax years 2026-27 to 2029-30, the Secretary of State must exercise the power in section 4(2)(a) or (6)(c) of the [Welfare Reform Act 2007](https://www.legislation.gov.uk/ukpga/2007/5) to increase—

- (3) Where it is necessary in order to achieve the result in [subsection (4)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/4/2026-04-06) for any of the tax years 2026-27 to 2029-30, the Secretary of State must exercise the power in section 4(2)(a) or (6)(c) of the [Welfare Reform Act 2007](https://www.legislation.gov.uk/ukpga/2007/5) to increase—

- (a) any amount of an ESA IR disability premium for that tax year,

@@ -134,13 +134,13 @@

- (c) any amount of the ESA IR personal allowance for that tax year.

- (4) The result to be achieved for a tax year (“the current tax year”) is that for each combination of amounts referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/enacted)[(a)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/a/enacted) to [(c)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/c/enacted) to which a person could be entitled, the sum of those amounts for the current tax year is at least (in each case) the amount given by increasing—

- (4) The result to be achieved for a tax year (“the current tax year”) is that for each combination of amounts referred to in [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/2026-04-06)[(a)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/a/2026-04-06) to [(c)](https://www.legislation.gov.uk/ukpga/2025/22/section/5/3/c/2026-04-06) to which a person could be entitled, the sum of those amounts for the current tax year is at least (in each case) the amount given by increasing—

- (a) the sum of those amounts for the previous tax year, by

- (b) the relevant CPI percentage for the current tax year.

- (5) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/5/enacted)—

- (5) In [this section](https://www.legislation.gov.uk/ukpga/2025/22/section/5/2026-04-06)—

- (a) an “*amount of the ESA IR personal allowance*” means an amount—

@@ -162,7 +162,7 @@

##### 6

[Schedule 2](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/enacted) makes provision for Northern Ireland which corresponds to that made by the previous provisions of this Act.

[Schedule 2](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/2026-04-06) makes provision for Northern Ireland which corresponds to that made by the previous provisions of this Act.

### Short title

@@ -182,11 +182,11 @@

In regulation 2 (interpretation), at the appropriate places insert—

> - “*pre-2026 claimant*” has the meaning in regulation [27A](#p00687)[(1)](#p00689);

;

> - “*severe conditions criteria claimant*” has the meaning in regulation [40A](#p00727)[(2)](#p00733);

> - “*pre-2026 claimant*” has the meaning in regulation 27A(1);

;

> - “*severe conditions criteria claimant*” has the meaning in regulation 40A(2);

@@ -318,7 +318,7 @@

##### 1

- (1) The Department for Communities in Northern Ireland must exercise a relevant power in order to secure that the amounts of the standard allowance for tax years 2026-27 to 2029-30 are at least the amounts calculated for each tax year in accordance with [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/2/enacted).

- (2) The minimum amounts of the standard allowance for a tax year are calculated as follows—

@@ -339,7 +339,7 @@

| 2028-29 | 4.0% |

| 2029-30 | 4.8% |

- (5) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/enacted)—

- (5) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/2026-04-06)—

- (a) “*consumer prices index*” means the all items consumer prices index published by the Statistics Board;

@@ -353,7 +353,7 @@

- (d) the standard allowance “for” a tax year means the standard allowance applicable for any assessment period commencing on or after the first Monday of that tax year and before the first Monday of the following tax year, and for this purpose “*assessment period*” has the same meaning as in Part 2 of [that Order](https://www.legislation.gov.uk/nisi/2015/2006).

- (6) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/enacted) and paragraphs [3](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/enacted) and [4](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/enacted)—

- (6) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/2026-04-06) and paragraphs [3](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/2026-04-06) and [4](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2026-04-06)—

- (a) “*tax year*” means the 12 months beginning with 6 April in any year;

@@ -367,11 +367,11 @@

- (2) In regulation 2 (interpretation), at the appropriate places insert—

> - “*pre-2026 claimant*” has the meaning in regulation [28A](#p01178)[(1)](#p01180);

;

> - “*severe conditions criteria claimant*” has the meaning in regulation [41A](#p01239)[(2)](#p01245);

> - “*pre-2026 claimant*” has the meaning in regulation 28A(1);

;

> - “*severe conditions criteria claimant*” has the meaning in regulation 41A(2);

@@ -447,7 +447,7 @@

- (i) in sub-paragraph (a), after “activity” insert “or is a severe conditions criteria claimant”;

- (ii) in the closing words, for “(4)” substitute “[(6)](#p01418)”;

- (ii) in the closing words, for “(4)” substitute “(6)”;

- (b) in paragraph (2)(b)—

@@ -472,7 +472,7 @@

> (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)](#p01390) and [(5)](#p00887) “*relevant evidence*”, in relation to a determination, means evidence to suggest that—

> (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.

@@ -488,13 +488,13 @@

- (b) in paragraph (2), for “, as the case may be, for work and work-related activity” substitute “for work and work-related activity or as not being a severe conditions criteria claimant (as the case may be)”.

- (10) [This paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/2/enacted) comes into force on 6 April 2026 and has effect in relation to assessment periods commencing on or after that date, and for this purpose “*assessment period*” has the same meaning as in Part 2 of the [Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1))](https://www.legislation.gov.uk/nisi/2015/2006).

- (10) This paragraph comes into force on 6 April 2026 and has effect in relation to assessment periods commencing on or after that date, and for this purpose “*assessment period*” has the same meaning as in Part 2 of the [Welfare Reform (Northern Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1))](https://www.legislation.gov.uk/nisi/2015/2006).

#### Protected LCWRA amount for tax years 2026-27 to 2029-30

##### 3

- (1) Where it is necessary in order to achieve the result in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/2/enacted) for any of the tax years 2026-27 to 2029-30, the Department for Communities in Northern Ireland must exercise the power in Article 14(2) or 17(3) of the [Welfare Reform (Northern Ireland) Order 2015](https://www.legislation.gov.uk/nisi/2015/2006) to increase—

- (1) Where it is necessary in order to achieve the result in [sub-paragraph (2)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/2/2026-04-06) for any of the tax years 2026-27 to 2029-30, the Department for Communities in Northern Ireland must exercise the power in Article 14(2) or 17(3) of the [Welfare Reform (Northern Ireland) Order 2015](https://www.legislation.gov.uk/nisi/2015/2006) to increase—

- (a) the protected LCWRA amount for that tax year, or

@@ -506,7 +506,7 @@

- (b) the relevant CPI percentage for the current tax year.

- (3) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/enacted)—

- (3) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/2026-04-06)—

- (a) “*the protected LCWRA amount*” means the amount of the LCWRA element that applies to a pre-2026 claimant, a severe conditions criteria claimant or a claimant who is terminally ill (within the meanings of the [Universal Credit Regulations (Northern Ireland) 2016](https://www.legislation.gov.uk/nisr/2016/216));

@@ -516,7 +516,7 @@

- (d) reference to an amount or allowance “for” a tax year means the amount or allowance applicable for any assessment period commencing on or after the first Monday of that tax year and before the first Monday of the following tax year, and for this purpose “*assessment period*” has the same meaning as in Part 2 of [that Order](https://www.legislation.gov.uk/nisi/2015/2006).

- (4) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/enacted) and in [paragraph 4](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/enacted)—

- (4) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/3/2026-04-06) and in [paragraph 4](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2026-04-06)—

@@ -526,9 +526,9 @@

##### 4

- (1) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/enacted) applies in relation to the amounts of the ESA IR personal allowance for tax years 2026-27 to 2029-30 as it applies in relation to the amounts of the standard allowance for those tax years, but as if the reference to the power in Article 14(2) of the [Welfare Reform (Northern Ireland) Order 2015](https://www.legislation.gov.uk/nisi/2015/2006) were to the power in section 4(2)(a) of the [Welfare Reform Act (Northern Ireland) 2007 (c. 2 (N.I.))](https://www.legislation.gov.uk/nia/2007/2).

- (2) Where it is necessary in order to achieve the result in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/3/enacted) for any of the tax years 2026-27 to 2029-30, the Department for Communities in Northern Ireland must exercise the power in section 4(2)(a) or (6)(c) of the Welfare Reform Act (Northern Ireland) 2007 to increase—

- (1) [Paragraph 1](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/1/2026-04-06) applies in relation to the amounts of the ESA IR personal allowance for tax years 2026-27 to 2029-30 as it applies in relation to the amounts of the standard allowance for those tax years, but as if the reference to the power in Article 14(2) of the [Welfare Reform (Northern Ireland) Order 2015](https://www.legislation.gov.uk/nisi/2015/2006) were to the power in section 4(2)(a) of the [Welfare Reform Act (Northern Ireland) 2007 (c. 2 (N.I.))](https://www.legislation.gov.uk/nia/2007/2).

- (2) Where it is necessary in order to achieve the result in [sub-paragraph (3)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/3/2026-04-06) for any of the tax years 2026-27 to 2029-30, the Department for Communities in Northern Ireland must exercise the power in section 4(2)(a) or (6)(c) of the Welfare Reform Act (Northern Ireland) 2007 to increase—

- (a) any amount of the severe disability premium or enhanced disability premium specified in Part 3 of Schedule 4 to the [Employment and Support Allowance Regulations (Northern Ireland) 2008 (S.R. (N.I.) 2008 No. 280)](https://www.legislation.gov.uk/nisr/2008/280) for that tax year (so far as prescribed under section 4(2)(a) of that Act),

@@ -536,13 +536,13 @@

- (c) any amount of the ESA IR personal allowance for that tax year.

- (3) The result to be achieved for a tax year (“the current tax year”) is that for each combination of amounts referred to in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/enacted)[(a)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/a/enacted) to [(c)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/c/enacted) to which a person could be entitled, the sum of those amounts for the current tax year is at least (in each case) the amount given by increasing—

- (3) The result to be achieved for a tax year (“the current tax year”) is that for each combination of amounts referred to in sub-paragraph [(2)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/2026-04-06)[(a)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/a/2026-04-06) to [(c)](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2/c/2026-04-06) to which a person could be entitled, the sum of those amounts for the current tax year is at least (in each case) the amount given by increasing—

- (a) the sum of those amounts for the previous tax year, by

- (b) the relevant CPI percentage for the current tax year.

- (4) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/enacted)—

- (4) In [this paragraph](https://www.legislation.gov.uk/ukpga/2025/22/schedule/2/paragraph/4/2026-04-06)—

- (a) an “*amount of the ESA IR personal allowance*” means an amount—

2025-09-03

Universal Credit Act 2025

original version Text at this date