Universal Credit Act 2025

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.

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Available Versions

3 Sep 2025
Act of Parliament
Universal Credit Act 2025 (c. 22)
10 Jul 2025
Lords: Committee
HL Bill 123 (as brought from the Commons)
(0 amendments)
Date Debate
Tuesday 22nd July 2025 Committee negatived
18 Jun 2025
Commons: Committee
Bill 267 2024-25 (as introduced)
(74 amendments)

Relevant Documents

Bill PDF
Bill 267 2024-25 (as introduced)
Latest Amendments
Committee of the whole House Proceedings as at 9 July 2025
Explanatory Note
Bill 267 EN 2024-25
Impact Assessment
Universal Credit Rebalancing from the Department for Work and Pensions - May 2025

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1 New Clauses Proposed

Page 1

Universal credit

 
"Standard allowance for tax years 2026-27 to 2029-30"

Source Bill 267 EN 2024-25

63. Clause 1 sets out the minimum amounts to which the UC standard allowance must increase in each year until 2029-30.

64. Subsection (1) provides that the Secretary of State must increase the standard allowance above inflation in tax years 2026-27 to 2029-30, so that the rate is at least the amount resulting from the calculation specified in subsection (2).

65. Subsection (2) sets out the calculation to determine the minimum amount of standard allowance for the relevant tax years. The UC standard allowance will increase by more than the increase in inflation (measured by the increase in the Consumer Prices Index, “CPI”) each year from 2026-27 to 2029-30. The minimum standard allowance for each year is calculated using the steps set out in this subsection and the percentage increases set out in subsection (4).

66. Subsection (3) sets out how the percentage increase in the CPI is calculated for the purposes of subsection (2).

67. Subsection (4) specifies the relevant percentage to be used in the calculation set out in subsection (2) for the applicable years.

68. Subsection (5) disapplies section 150(1) and section 150(2)(c) of the Social Security Administration Act 1992 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, thereby removing the Secretary of State's annual duty to review those amounts and her duty to state these amounts in her statement of any sums that are not increased in the annual Up-rating Order.

69. Subsection (6) defines “CPI”, the “relevant power” which may be used to increase the standard allowance, "the standard allowance”, and the standard allowance “for” a tax year for the purposes of this section

70. Subsection (7) defines a “tax year" and its meaning in phrases such as “tax year 2025-26", for the purposes of this Bill.
1
Standard allowance for tax years 2026-27 to 2029-30
 
 
(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) .
5
 
(2)
The minimum amounts of the standard allowance for a tax year are calculated as
 
 
follows—
 
 
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
10
 
resulting from Step 2 for the previous tax year.
 
 
Increase the amounts identified in Step 1 by the relevant CPI percentage for the tax
 
 
year.
 
 
Increase the amounts resulting from Step 2 by the relevant uplift percentage for the
 
 
tax year.
 
 
(3)
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).
20
 
(4)
The table below sets out the relevant uplift percentage for tax years 2026-27 to
 
 
2029-30— Tax year
 

Page 2

 
Relevant uplift percentage
 
 
2026-27
 
 
2.3%
 
 
2027-28
 
 
3.1%
 
 
2028-29
 
 
4.0%
 
 
2029-30
5
 
4.8%
5
 
(5)
Subsections (1) and (2) (c) of section 150 of the Social Security Administration
 
 
Act 1992 (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 —
10
 
(a)
“consumer prices index” means the all items consumer prices index
 
 
published by the Statistics Board;
 
 
(b)
a “relevant power” means—
 
 
(i)
the power in section 9 (2) of the Welfare Reform Act 2012 , or
 
 
(ii)
the power in section 150 (2) (b) of the Social Security
15
 
Administration Act 1992 ;
 
 
(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 ;
 
 
(d)
the standard allowance “for” a tax year means the standard allowance
20
 
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 .
 
 
(7)
In this section and sections 3 and 4 —
25
 
(a)
“tax year” means the 12 months beginning with 6 April in any year;
 
 
(b)
“tax year 2025-26” means the tax year beginning on 6 April 2025 (and
 
 
any corresponding expression in which two years are similarly
 
 
mentioned is to be read in the same way).
 
"LCWRA element for tax year 2026-27"

Source Bill 267 EN 2024-25

71. Clause 2 amends Regulation 36 of the Universal Credit Regulations 2013 to create two different rates of the LCWRA element of UC. There is a higher rate for pre-2026 claimants, terminally ill claimants and claimants who meet the severe conditions criteria ("SCC"). There is a lower rate for all other claimants

72. Subsection (1) amends the table of amounts in regulation 36 of the Universal Credit Regulations 2013 and specifies the rates of the LCWRA element.

73. Subsection (2) provides for Schedule 1 to make further amendments to the Universal Credit Regulations 2013.

74. Subsection (3) provides for section 2 and Schedule 1 to come into force on 6 April 2026 and have effect in relation to UC assessment periods, as defined in Part 1 of the Welfare Reform Act 2012, starting on or after that date.
2
LCWRA element for tax year 2026-27
30
 
(1)
In regulation 36 of the Universal Credit Regulations 2013 (table showing
 
 
amounts of elements), in the table, for the row showing the amount for limited
 
 
capability for work and work-related activity substitute—
 
 
“pre-2026 claimant
 
 
£423.27
 
 
severe conditions criteria claimant
35
 
£423.27
35
 
claimant who is terminally ill
 
 
£423.27
 
 
any other claimant with limited capability for work and
 
 
£217.26”.
 
 
work-related activity
 

Page 3

 
(2)
Schedule 1 makes further amendments to the Universal Credit Regulations
 
 
2013 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
5
 
Welfare Reform Act 2012 .
 
"Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30"

Source Bill 267 EN 2024-25

75. Clause 3 freezes the amounts paid through the LCWRA and LCW elements of UC for tax years 2026-27 to 2029-30 by removing the Secretary of State's annual duty to review those amounts.

76. Subsection (1) disapplies sections 150(1) and (2) of the Social Security Administration Act 1992 in the tax years ending with 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, to the LCWRA and LCW elements.

77. Subsection (2) defines "the LCWRA element" and "the LCW element" for the purposes of this section.
3
Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30
 
 
(1)
Subsections (1) and (2) of section 150 of the Social Security Administration
 
 
Act 1992 (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
10
 
element or the LCW element.
 
 
(2)
In this section —
 
 
(a)
“the LCWRA element” has the meaning given by regulation 27 of the
 
 
Universal Credit Regulations 2013 ;
 
 
(b)
“the LCW element” has the meaning given by regulation 27 of the
15
 
Universal Credit Regulations 2013 (so far as saved by paragraph 8 of
 
 
Schedule 2 to the Employment and Support Allowance and Universal
 
 
Credit (Miscellaneous Amendments and Transitional and Savings
 
 
Provisions) Regulations 2017).
 
"Legacy employment and support allowance payments"

Source Bill 267 EN 2024-25

78. Clause 4 applies changes to ESA-IR that mirror the changes made to UC by clause 1. Namely, it applies above inflation increases to the ESA-IR personal allowance over the four years from 2026-27 and freezes the work-related activity and support components over the same period. Clause 4 also acts to freeze the rates of SDP and EDP for the same period.

79. Subsection (1) applies the provisions of clause 1 to ESA-IR, providing that the Secretary of State will increase the personal allowance above inflation and for all claimants, sustained for tax years 2026-27 to 2029-30 by at least the amounts as calculated according to clauses 1(2)-(4).

80. Subsection (1), in applying clause 1(5) to ESA-IR, disapplies sections 150(1) and (2)(c) of the Social Security Administration Act 1992 in the tax years ending with 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, to the personal allowance rates of ESA-IR thereby removing the Secretary of State's annual duty to review those amounts and her duty to state the amount of any sums that are not increased in the annual Up-rating Order.

81. Subsection (2) disapplies sections 150(1) and (2) of the Social Security Administration Act 1992 in the tax years ending 5 April 2026, 5 April 2027, 5 April 2028 and 5 April 2029, in respect of the SDP and EDP and the support and work-related activity components of ESA-IR.

82. Subsection (3) defines various terms used in the clause.

  • a. Subsection (3)(a) defines an “amount of the ESA-IR personal allowance" using a two-stage cumulative definition as being (i) an amount specified under specified under section 4(2)(a) of the Welfare Reform Act 2007 for the purposes of the calculation of the amount of an income-related allowance and (ii) that is not an amount of an ESA-IR premium or an amount in respect of housing costs.
  • b. Subsection (3)(b) defines an "amount of an ESA-IR disability premium" as relating to SDP or EDP only in this context.
  • c. Subsection (3)(c) defines "the ESA-IR support component".
  • d. Subsection (3)(d) defines “the ESA-IR work-related activity component"
  • e. Subsection (3)(e) defines the references to an amount or component "for" a tax year.
4
Legacy employment and support allowance payments
20
 
(1)
Section 1 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 were to the power in section 4 (2) (a) of the Welfare
 
 
Reform Act 2007 .
25
 
(2)
Subsections (1) and (2) of section 150 of the Social Security Administration
 
 
Act 1992 (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—
 
 
(a)
any amount of an ESA IR disability premium;
30
 
(b)
the ESA IR support component;
 
 
(c)
the ESA IR work-related activity component.
 
 
(3)
In this section —
 
 
(a)
an “amount of the ESA IR personal allowance” means an amount—
 
 
(i)
that is prescribed under section 4 (2) (a) of the Welfare Reform
35
 
Act 2007 (amount of income-related allowance), and
 
 
(ii)
that is not an amount of a premium specified in Part 3 of
 
 
Schedule 4 to the Employment and Support Allowance
 
 
Regulations 2008 or an amount in respect of housing costs;
 
 
(b)
an “amount of an ESA IR disability premium” means an amount of
40
 
the severe disability premium or enhanced disability premium specified
 
 
in Part 3 of Schedule 4 to the Employment and Support Allowance
 

Page 4

 
Regulations 2008 , so far as prescribed under section 4 (2) (a) of the
 
 
Welfare Reform Act 2007 ;
 
 
(c)
“the ESA IR support component” means the amount specified in
 
 
paragraph 13 of Part 4 of Schedule 4 to the Employment and Support
 
 
Allowance Regulations 2008 , so far as specified under section 4 (6) (c)
5
 
of the Welfare Reform Act 2007 ;
 
 
(d)
“the ESA IR work-related activity component” means the amount
 
 
specified in paragraph 12 of Part 4 of Schedule 4 to the Employment
 
 
and Support Allowance Regulations 2008 , so far as specified under
 
 
section 4 (6) (c) of the Welfare Reform Act 2007 for the purposes of
10
 
cases falling within paragraphs 2 to 7 of Schedule 2 to the Employment
 
 
and Support Allowance and Universal Credit (Miscellaneous
 
 
Amendments and Transitional and Savings Provisions) Regulations
 
 
2017 ;
 
 
(e)
a reference to an amount or component “for” a tax year means the
15
 
amount applicable for any benefit week 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 “benefit week” has the same
 
 
meaning as in the Employment and Support Allowance Regulations
 
 
2008 .
20

Personal independence payment eligibility

 
"Personal independence payment eligibility"

Source Bill 267 EN 2024-25

83. Clause 5 amends the scoring for daily living activities in the Social Security (Personal Independence Payment) Regulations 2013, implementing an additional requirement that a claimant must score four or more points in at least one of the ten daily living activities to be eligible for either the standard or enhanced rate of the daily living component.

84. Subsection (1) specifies the wording that will replace paragraph (3) of regulation 5 of the Social Security (Personal Independence Payment) Regulations 2013 (scoring for daily living activities).

  • a. New paragraph (3) states that a claimant has limited ability to carry out daily living activities if they meet the criteria set out in new paragraphs (3)(a) and (3)(b).
  • b. New paragraph (3)(a) states that a claimant must score 8 points or more but less than 12 points in relation to daily living activities, to meet the eligibility criteria for this category.
  • c. New paragraph (3)(b) states that a claimant must score at least four points in a single daily living activity, to meet the eligibility criteria for this category.
  • d. New paragraph (4) states that a claimant has severely limited capability to carry out daily living activities if they meet the criteria set out in new paragraphs (4)(a) and (4)(b).
  • e. New paragraph (4)(a) states that a claimant must score 12 points or more in relation to daily living activities to meet the eligibility criteria for this category.
  • f. New paragraph (4)(b) states that a claimant must score at least four points in a single daily living activity, to meet the eligibility criteria for this category.
  • g. New paragraph (5) states that a claimant who has PIP at the coming into force date of the regulations will continue to be eligible for PIP at the same rate as previously if they satisfy all three of the conditions set out in new paragraphs (5)(a), (b) and (c).
  • h. New paragraph (5)(a) states that a claimant must have been entitled to the standard or enhanced rate of PIP immediately before the coming into force date of clause 5.
  • i. New paragraph (5)(b) states that they must continue to be so entitled until the next occasion that they are assessed on their ability.
  • j. New paragraph (5)(c) states that this determination is that they cease to meet the criteria for limited or severely limited ability to carry out daily living activities because of the criteria set out in new paragraph (3)(b) or (4)(b).
  • k. New paragraph (6) stipulates that the continued entitlement set out in new paragraph (5) will end when a customer meets any of the criteria set out in new paragraphs (6)(a), (b) or (c).
  • l. New paragraph (6)(a) states that the entitlement set out in new paragraph (5) will end when the claimant ceases to meet residence and presence rules under Part 4 of the Social Security (Personal Independence Payment) Regulations 2013.
  • m. New paragraph (6)(b) states that the entitlement set out in new paragraph (5) will end when claimant becomes entitled to the daily living component of PIP as a result of a subsequent determination.
  • n. New paragraph (6)(c) states that the entitlement set out in new paragraph (5) will end after a period of 13 weeks. This period starts on the day that the determination that they cease to meet the criteria for PIP daily living mentioned in paragraph (5)(b) is made.

85. Subsection (2) stipulates that this additional requirement will come into effect on a date chosen by the Secretary of State via statutory instrument. It is intended that this date will be in November 2026.

86. Subsection (3) provides for a power to make transitional or saving provisions in connection with the coming into force of subsection (1). This enables the Secretary of State to make any specific provision needed to determine the changeover from the state of the law prior to the coming into force of the Bill and following this.

87. Subsection (4) specifies in a non-exhaustive way the arrangements that can be made under the power in subsection (3) including making different provision for different cases or purposes or to provide for a discretion.

88. Subsection (5) specifies that clause 5 does not extend to Scotland.
5
Personal independence payment eligibility
 
 
(1)
In regulation 5 of the Social Security (Personal Independence Payment)
 
 
Regulations 2013 (scoring for daily living activities) for paragraph (3)
 
 
substitute—
25
 
“(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
30
 
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
35
 
(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
40
 
Credit and Personal Independence Payment Act 2025 (which inserted
 
 
this paragraph) came into force,
 

Page 5

 
(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
5
 
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
10
 
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
15
 
the determination mentioned in paragraph (5) (c) was made.”
 
 
(2)
Subsection (1) comes into force on such day as the Secretary of State may by
 
 
regulations made by statutory instrument appoint.
 
 
(3)
The Secretary of State may by regulations made by statutory instrument make
 
 
transitional or saving provision in connection with the coming into force of
20
 
subsection (1) .
 
 
(4)
The power to make regulations under subsection (3) includes power—
 
 
(a)
to make different provision for different cases or purposes (including
 
 
different provision for persons of different ages);
 
 
(b)
to provide for a person to exercise a discretion in dealing with any
25
 
matter.
 
 
(5)
This section does not extend to Scotland.
 

Corresponding provision for Northern Ireland

 
"Corresponding provision for Northern Ireland"

Source Bill 267 EN 2024-25

89. Clause 6 sets out that this Bill will also make corresponding provision for Northern Ireland. These provisions are set out in full in Schedule 2.
6
Corresponding provision for Northern Ireland
 
 
Schedule 2 makes provision for Northern Ireland which corresponds to that
30
 
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.
35

Page 6

Schedules

 
 
Schedule 1
Section 2
 
"Amendments to the"

Source Bill 267 EN 2024-25

90. Paragraph 1 explains that Schedule 1 amends the Universal Credit Regulations 2013.

91. Paragraph 2 inserts a definition of “pre-2026 claimant” and “severe conditions criteria claimant" into regulation 2 by reference to new regulations 27A(1) and 40A(1).

92. Paragraph 3(a) amends regulation 27(2) to introduce the categories of "pre-2026 claimant" and "severe conditions criteria claimant". Whether a claimant falls into one of those categories, is terminally ill or none of the above determines the amount of LCWRA element to which they are entitled, as set out in the table in regulation 36.

93. Paragraph 3(b) inserts “or is a severe conditions criteria claimant” into regulation 27(3) to specify that the determination of whether a claimant is a SCC claimant is on the basis of an assessment under Part 5 of the Universal Regulations 2013 (which is the same process to determine LCWRA).

94. Paragraph 3(c) amends regulation 27(4) to stipulate that where there are joint claimants, as there can only be one LCWRA element in an award, where the joint claimants would be entitled to different rates of the LCWRA element, the applicable amount is the higher one.

95. Paragraph 4 inserts a new regulation 27A that defines a "pre-2026 claimant".

  • a. New regulation 27A(1) sets out two criteria for the definition of “pre-2026 claimant", (a) that a person was entitled to the LCWRA element of UC prior to 6 April 2026, and (b) that the person has been entitled to an award of UC and has also had LCWRA continuously since that time.
  • b. New regulation 27A(2) treats a claimant as being continuously entitled to UC, despite there being a gap between the claimant's UC awards, provided that the cumulative criteria in paragraphs (2)(a) and (b) are met.
  • c. New regulation 27A(2)(a) sets the criterion that an award ceased because the financial condition in section 5(1)(b) or section 5(2)(b) of the Welfare Reform Act 2012 was not met. This would occur where the income of a single claimant, or combined income of joint claimants, reduces the calculation of their entitlement to below the prescribed minimum amount to be entitled to UC.
  • d. New regulation 27A(2)(b) sets the criterion that a further award commenced within the period of six months beginning with the day on which the award referred to in paragraph (2)(a) ceased. This aligns with the period in which UC claimants can be treated as having made a new claim, following the termination of an award, to ensure that if their income reduces (such that they meet the financial condition again) a new award is automatically made.

96. Paragraph 5 amends regulation 38 to introduce “severe conditions criteria claimant" as a category to be assessed under Part 5 of those regulations.

97. Paragraph 6 inserts a new regulation 40A that defines a “severe conditions criteria claimant".

  • a. New regulation 40A(1) states that a claimant is a SCC claimant if it has been determined, on the basis of an assessment under Part 5 of the Universal Credit Regulations 2013, that the claimant is a SCC claimant.
  • b. New regulation 40A(2) sets the two cumulative criteria for assessment as a “severe conditions criteria claimant".
  • c. New regulation 40A(2)(a) stipulates the first criterion as being that the claimant has LCWRA on the basis of an assessment under Part 5 of the regulations.
  • d. New regulation 40A(2)(b) stipulates the second criterion as being that at least one of the descriptors in Schedule 7 (assessment of whether a claimant has LCWRA) constantly applies to the claimant and will do so for the rest of the claimant's life.
  • e. New regulation 40A(3) stipulates conditions for the assessment of whether a claimant fulfils the criterion in 40A(2)(b).
  • f. New regulation 40A(3)(a) stipulates those descriptors which must be satisfied by a bodily disease or disablement, matching the existing criteria for the assessment of LCWRA, and also specifies that the claimant will have the disease or disablement for the rest of their life and the disease or disablement has been diagnosed by an appropriately qualified health care professional in the provision of NHS services.
  • g. New regulation 40A(3)(b) stipulates those descriptors which must be satisfied by a specific mental illness or disablement, matching the existing criteria for the assessment of LCWRA, and also specifies that the claimant will have the mental illness or disablement for the rest of their life and the mental illness or disablement has been diagnosed by an appropriately qualified health care professional in the provision of NHS services.
  • h. New regulation 40A(4) sets out when a descriptor in Schedule 7 will be taken to constantly apply to a claimant, that it must apply at all times or on all occasions when the claimant undertakes or attempts to undertake the activity.
  • i. New regulation 40A(5) defines what is meant by “NHS Services" for the purposes of establishing that a diagnosis of a specific condition has occurred. In essence, a diagnosis has to be made in the course of the provision of health care services within the national health service in England, Wales or Scotland, or the Health and Social Care service in Northern Ireland.
  • j. New regulation 40A(5)(a(i)) gives the first definition as being the definition contained in section 1(1) of the National Health Service Act 2006.
  • k. New regulation 40A(5)(a(ii)) gives the second definition as being the definition contained in section 1(1) of the National Health Service (Wales) Act 2006.
  • l. New regulation 40A(5)(a(iii)) gives the third definition as being the definition contained in section 1(1) of the National Health Service (Scotland) Act 1978.
  • m. New regulation 40A(5)(b) gives the fourth definition as being the definition contained in section 2(1) of the Health and Social Care (Reform) Act (Northern Ireland) 2009.

98. Paragraph 7 amends regulation 41 to determine when an assessment of whether someone is a severe conditions criteria claimant may be carried out.

99. Sub-paragraph 7(a) inserts “or is a severe conditions criteria claimant" into regulation 41(1)(a) to give the Secretary of State the ability to carry out an assessment of whether the claimant is a SCC claimant for the first time. It also adds a reference to new paragraphs (5) and (6) to regulation 41(1)(b) to apply new limitations on whether the Secretary of State can reassess a claimant who has previously been determined to be a SCC claimant.

100. Sub-paragraph 7(b) amends regulation 41(2)(b) so that the Secretary of State can review a previous determination that a claimant is a SCC claimant when their monthly earnings are equal to or exceeding the relevant threshold.

101. Sub-paragraph 7(c) makes a consequential change to regulation 41(2) to maintain the existing position that where the Secretary of State may not make an assessment of whether a claimant has LCWRA, they should be viewed as not having LCWRA.

102. Sub-paragraph 7(d) replaces regulation 41(4) with new paragraphs (4) to (6) to limit the ability of the Secretary of State to reassess a claimant. In certain circumstances, no further assessment may be carried out unless there is relevant evidence to suggest that the previous determination was made in ignorance of, or based on a mistake as to, some material fact, or there has been a relevant change of circumstances. These limitations apply where the claimant has previously been found not to have LCWRA or has been found to be a SCC claimant. They also apply to a further assessment of whether someone is a SCC claimant where they have previously been determined to have LCWRA but not to be a SCC claimant.

103. Paragraphs 8 and 9 amend regulations 43 and 44 to insert "or is a severe conditions criteria claimant" so that the same regulations on assessments and medical examinations apply to the assessment of whether someone is a SCC claimant as apply to the assessment of whether someone has LCWRA.

104. Paragraph 10 amends regulation 23(2)(a) to include the new regulation 27A in the cross-reference that signposts the reader of the legislation to the specific provisions that govern the LCWRA element of an award.

Amendments to the

 

new amounts of the LCWRA element

 
 
1
The Universal Credit Regulations 2013 are amended as follows.
5
 
2
In regulation 2 (interpretation), at the appropriate places insert—
 
 
““pre-2026 claimant” has the meaning in regulation 27A (1) ;”;
 
 
““severe conditions criteria claimant” has the meaning in regulation
 
 
40A (2) ;”.
 
 
3
In regulation 27 (award to include LCWRA element)—
10
 
(a)
in paragraph (2) , at the end insert “by reference to whether the
 
 
claimant is—
 
 
“(a)
a pre-2026 claimant,
 
 
(b)
a severe conditions criteria claimant,
 
 
(c)
terminally ill, or
15
 
(d)
any other claimant.”;
 
 
(b)
in paragraph (3) , after “activity” insert “or is a severe conditions
 
 
criteria claimant”;
 
 
(c)
in paragraph (4) —
 
 
(i)
the words from “the award” to the end become
20
 
sub-paragraph (a) of that paragraph , and
 
 
(ii)
at the end of that sub-paragraph insert “, and
 
 
“(b)
where the LCWRA element for each of them is a
 
 
different amount, the LCWRA element to be
 
 
included is the higher amount.”
25
 
4
After regulation 27 insert—
 

“Meaning of “pre-2026 claimant”

 
 
27A.
(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—
30
 
(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.
 

Page 7

 
(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
5
 
(b)
that ends within the period of six months beginning with the day
 
 
on which that condition ceased to be met.”
 
 
5
In regulation 38 (introduction: capability for work or work-related activity),
 
 
after “activity,” insert “or is a severe conditions criteria claimant,”.
 
 
6
After regulation 40 (limited capability for work and work-related activity)
10
 
insert—
 

“Severe conditions criteria claimant

 
 
40A.
(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.
15
 
(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
20
 
(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
25
 
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
30
 
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
35
 
(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
40
 
that descriptor.
 

Page 8

 
(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 ;
5
 
(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 .”
 
 
7
In regulation 41 (when an assessment may be carried out)—
10
 
(a)
in paragraph (1)—
 
 
(i)
in sub-paragraph (a), after “activity” insert “or is a severe
 
 
conditions criteria claimant”;
 
 
(ii)
in the closing words, for “(4)” substitute “ (6) ”;
 
 
(b)
in paragraph (2) (b) —
15
 
(i)
the words from “that a claimant” to the end become
 
 
paragraph (i) of that sub-paragraph ;
 
 
(ii)
at the end of that paragraph insert “, or
 
 
“(ii)
that a claimant is a severe conditions criteria
 
 
claimant made on the basis of an assessment
20
 
under this Part,”;
 
 
(c)
in paragraph (2), in the words after sub-paragraph (b), for “no
 
 
assessment may” substitute “an assessment for the purposes of
 
 
determining whether a claimant has limited capability for work and
 
 
work-related activity may not”;
25
 
(d)
for paragraph (4) substitute—
 
 
“(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
30
 
(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—
35
 
(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,
40

Page 9

 
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—
5
 
(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.”
 
 
8
In regulation 43 (information requirement)—
10
 
(a)
in paragraph (1) , in the opening words, after “activity” insert “or is
 
 
a severe conditions criteria claimant”;
 
 
(b)
in paragraph (3) , 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
15
 
may be)”.
 
 
9
In regulation 44 (medical examination)—
 
 
(a)
in paragraph (1) , after “activity” insert “or is a severe conditions
 
 
criteria claimant”;
 
 
(b)
in paragraph (2) , for “, as the case may be, for work and
20
 
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
In regulation 23 (introduction), in paragraph (2) (a) for “and” substitute
 
 
“to”.
25
 
Schedule 2
Section 6
 
"Northern Ireland: corresponding provision"

Source Bill 267 EN 2024-25

105. This schedule makes provisions for Northern Ireland corresponding to those made by the rest of the Bill in clauses 1-5 and Schedule 1, to ensure that equivalent measures apply to Northern Ireland as required.

106. Paragraph 1 (Standard allowance for tax years 2026-27 to 2029-30) corresponds to clause 1.

107. Sub-paragraph (1) sets out the requirement for the Department for Communities to use a relevant power to ensure that the rates of the UC standard allowance are increased above inflation in tax years 2026-27 to 2029-30.

108. Sub-paragraph (2) sets out the calculation to determine the minimum amount of standard allowance for the relevant tax years. The UC standard allowance will increase by more than the increase in inflation (measured by the increase in the CPI) each year from 2026/27 to 2029/30. The minimum standard allowance for each year is calculated using the steps set out in this sub-paragraph and the percentage increases set out in sub-paragraph (4).

109. Sub-paragraph (3) sets out how the percentage increase in the CPI is calculated for the purposes of sub-paragraph (2).

110. Sub-paragraph (4) specifies the relevant percentage to be used in the calculation set out in sub-paragraph (2).

111. Sub-paragraph (5) defines the CPI, the relevant power to increase the standard allowance (with reference to Article 14(2) of the Welfare Reform (Northern Ireland) Order 2015 and section 132 of the Social Security Administration (Northern Ireland) Act 1992), the standard allowance (with respect to Article 14(1) of the Welfare Reform (Northern Ireland) Order 2015), the standard allowance "for" a tax year and assessment periods (with respect to Part 2 of the Welfare Reform (Northern Ireland) Order 2015) for the purpose of this paragraph.

112. Sub-paragraph (6) defines "tax year" and its meaning in phrases such as “tax year 2025-26", for the purposes of this Schedule.

113. Paragraph 2 (LCWRA element for tax year 2026-27) corresponds to clauses 2 and 3 and Schedule 1.

114. Sub-paragraph (1) sets out that amendments will be made to Universal Credit Regulations (Northern Ireland) 2016.

115. Sub-paragraph (2) inserts definitions of “pre-2026 claimant” and “severe conditions criteria claimant" into regulation 2 with reference to new regulations 28A(1) and 41A(1).

116. Sub-paragraph (3)(a) amends regulation 28(2) to introduce the categories of "pre-2026 claimant" and "severe conditions criteria claimant". Whether a claimant falls into one of those categories, is terminally ill or none of the above determines the amount of LCWRA element they are entitled to.

117. Sub-paragraph (3)(b) inserts “or is a severe conditions criteria claimant” in paragraph (3) of regulation 28 to specify that the determination of whether a claimant is a SCC claimant is on the basis of an assessment under Part 5 of the Universal Credit Regulations (Northern Ireland) 2016.

118. Sub-paragraph (3)(c) amends regulation 28(4) to stipulate that, where there are joint claimants and as there can only be one LCWRA element in an award, where the joint claimants would be entitled to different rates of the LCWRA element, the applicable amount is the higher one.

119. Sub-paragraph (4) inserts a new regulation 28A that defines a “pre-2026 claimant".

  • a. New regulation 28A(1) sets out that the two criteria for the definition of a "pre-2026 claimant" are (a) that a person was entitled to the LCWRA element of UC prior to 6 April 2026, and (b) that the person has been entitled to UC and has had LCWRA continuously since that time.
  • b. New regulation 28A(2) treats a claimant as being continuously entitled to UC, despite there being a gap between the claimant's UC awards, provided that the cumulative criteria in paragraphs (2)(a) and (b) are met.
  • c. New regulation 28A(2)(a) sets the criterion that an award ceased because the financial condition in Article 10(1)(b) or Article 10(2)(b) of the Welfare Reform (Northern Ireland) Order 2015 was not met. This would occur where the income of a single claimant, or combined income of joint claimants, reduces the calculation of their entitlement to below the prescribed minimum amount to be entitled to UC.
  • d. New regulation 28A(2)(b) sets the criterion that a further award commenced within the period of six months beginning with the day on which the award referred to in paragraph (2)(a) ceased. This aligns with the period in which UC claimants can be treated as having made a new claim, following the termination of an award, to ensure that if their income reduces (such that they meet the financial condition again) a new award is automatically made.

120. Sub-paragraph (5) amends the table of amounts in regulation 38 of the Universal Credit Regulations (Northern Ireland) 2016 and specifies the rates of the LCWRA element.

121. Sub-paragraph (6) inserts a new regulation 41A that defines a “severe conditions criteria claimant".

  • a. New regulation 41A(1) states that a claimant is a SCC claimant if it has been determined, on the basis of an assessment under Part 5 of the Universal Credit Regulations (Northern Ireland) 2016, that the claimant is a SCC claimant.
  • b. New regulation 41A(2) sets the two cumulative criteria for assessment as a “severe conditions criteria claimant".
  • c. New regulation 41A(2)(a) stipulates the first criterion as being that the claimant has LCWRA on the basis of an assessment under this part of the regulations.
  • d. New regulation 41A(2)(b) stipulates the second criterion as being that at least one of the descriptors in Schedule 7 (assessment of whether a claimant has LCWRA) constantly applies to the claimant and will do so for the rest of the claimant's life.
  • e. New regulation 41A(3) stipulates conditions for the assessment of whether a claimant fulfils the criterion in 41A(2)(b).
  • f. New regulation 41A(3)(a) stipulates those descriptors which must be satisfied by a bodily disease or disablement, matching the existing criteria for the assessment of LCWRA, and also specifies that the claimant will have the disease or disablement for the rest of their life and have been diagnosed by an appropriately qualified health care professional in the provision of health and social care services.
  • g. New regulation 41A(3)(b) stipulates those descriptors which must be satisfied by a specific mental illness or disablement, matching the existing criteria for the assessment of LCWRA, and also specifies that the claimant must have the disease or disablement for the rest of their life and have been diagnosed by an appropriately qualified health care professional in the provision of health and social care services.
  • h. New regulation 41A(4) sets out when a descriptor in Schedule 7 will be taken to constantly apply to a claimant, that it must apply at all times or on all occasions when the claimant undertakes or attempts to undertake the activity.
  • i. New regulation 41A(5) defines what is meant by "health and social care services" for the purposes of establishing that a diagnosis of a specific condition has occurred. In essence, a diagnosis has to be made in the course of the provision of health care services within the national health service in England, Wales or Scotland, or the Health and Social Care service in Northern Ireland.
  • j. New regulation 41A(5)(a) gives the first definition as being the definition contained in section 2(1) of the Health and Social Care (Reform) Act (Northern Ireland) 2009.
  • k. New regulation 41A(5)(b(i)) gives the second definition as being the definition contained in section 1(1) of the National Health Service Act 2006.
  • l. New regulation 41A(5)(b(ii)) gives the third definition as being the definition contained in section 1(1) of the National Health Service (Wales) Act 2006.
  • m. New regulation 41A(5)(b(iii)) gives the fourth definition as being the definition contained in section 1(1) of the National Health Service (Scotland) Act 1978.

122. Sub-paragraph (7) amends regulation 42 to limit when the Secretary of State may carry out an assessment.

123. Sub-paragraph (7)(a) inserts “or is a severe conditions criteria claimant" into regulation 42 to give the Secretary of State the ability to carry out an assessment of whether the claimant is a SCC claimant for the first time. It also adds a reference to new paragraphs (5) and (6) to regulation 42(1) to apply new limitations on whether the Secretary of State can reassess a claimant who has previously been determined to be a SCC claimant.

124. Sub-paragraph (7)(b) amends regulation 42(2)(b) so that the Secretary of State can review a previous determination that a claimant is a SCC claimant when their monthly earnings are equal to or exceeding the relevant threshold.

125. Sub-paragraph (7)(c) makes a consequential change to regulation 42(2) to maintain the existing position that where the Secretary of State may not make an assessment of whether a claimant has LCWRA they should be viewed as not having LCWRA.

126. Sub-paragraph 7(d) replaces regulation 42(4) with new paragraphs (4) to (6) to limit the ability of the Secretary of State to reassess a claimant. In certain circumstances, no further assessment may be carried out unless there is relevant evidence to suggest that the previous determination was made in ignorance of, or based on a mistake as to, some material fact, or there has been a relevant change of circumstances. These limitations apply where the claimant has previously been found not to have LCWRA or has been found to be a SCC claimant. They also apply to a further assessment of whether someone is a SCC claimant where they have previously been determined to have LCWRA but not to be a SCC claimant.

127. Sub-paragraphs (8) and (9) amend regulations 44 and 45 respectively to include the assessment of whether someone is a SCC claimant so that the same regulations on assessments and medical examinations apply to the assessment of whether someone is a SCC claimant as apply to the assessment of whether someone has LCWRA.

128. Sub-paragraph (10) specifies that paragraph 2 will come into force on 6 April 2026 and will affect claimants whose assessment period begins on or after this date. An 'assessment period' is defined with respect to Part 2 of the Welfare Reform (Northern Ireland) Order 2015.

129. Paragraph 3 (Legacy employment and support allowance) corresponds to clause 4.

130. Sub-paragraph (1) applies the provisions of paragraph 1 to ESA-IR, setting out the requirement for the Department for Communities to use the powers under 4(2)(a) of the Welfare Reform Act (Northern Ireland) 2007 to increase the personal allowance above inflation and for all claimants in tax years 2026-27 to 2029-30 by at least the amounts as calculated according to the method in paragraph 1 subsection (2)-(4).

131. Sub-paragraph (2) defines various terms used in the paragraph.

132. Sub-paragraph (2)(a) defines an “amount of the ESA-IR personal allowance” using a two-stage cumulative definition as being (i) an amount specified under section 4(2)(a) of the Welfare Reform Act (Northern Ireland) 2007 for the purposes of the calculation of the amount of an income-related allowance and (ii) that is not an amount of an ESA-IR premium as specified in Part 3 of Schedule 4 to the Employment and Support Allowance Regulations (Northern Ireland) 2008, or an amount in respect of housing costs.

133. Sub-paragraph (2)(b) defines the references to an amount or component “for” a tax year with reference to a benefit week. A benefit week is defined with reference to Employment and Support Allowance Regulations (Northern Ireland) 2008.

134. Paragraph 4 (PIP eligibility) corresponds to clause 5.

135. Sub-paragraph (1) specifies the wording that will be substituted for paragraph (3) of regulation 5 of the Personal Independence Payment Regulations (Northern Ireland) 2016 (scoring for daily living activities).

  • a. New paragraph (3) states that a claimant has limited ability to carry out daily living activities if they meet the criteria set out in New Paragraphs (3)(a) and (3)(b).
  • b. New paragraph (3)(a) states that a claimant must score 8 points or more but less than 12 points in relation to daily living activities, to meet the eligibility criteria for this category.
  • c. New paragraph (3)(b) states that a claimant must score at least four points in a single daily living activity, to meet the eligibility criteria for this category
  • d. New paragraph (4) states that a claimant has severely limited capability to carry out daily living activities if they meet the criteria set out in new paragraphs (4)(a) and (4)(b).
  • e. New paragraph (4)(a) states that a claimant must score 12 points or more in relation to daily living activities to meet the eligibility criteria for this category.
  • f. New paragraph (4)(b) states that a claimant must score at least four points in a single daily living activity, to meet the eligibility criteria for this category
  • g. New paragraph (5) states that a claimant who has PIP at the coming into force date of the regulations will continue to be eligible for PIP at the same rate as previously if they satisfy all three of the conditions set out in new paragraphs (5)(a), (b) and (c).
  • h. New paragraph (5)(a) states that a claimant must have been entitled to the standard or enhanced rate of PIP immediately before the coming into force date of paragraph 4 of the schedule.
  • i. New paragraph (5)(b) states that they must continue to be so entitled until the next occasion that they are assessed on their ability.
  • j. New paragraph (5)(c) states that this determination is that they cease to meet the criteria for limited or severely limited ability to carry out daily living activities because of the criteria set out in new paragraph (3)(b) or (4)(b).
  • k. New paragraph (6) stipulates that the continued entitlement set out in new paragraph (5) will end when a customer meets any of the criteria set out in new paragraphs (6)(a), (b) or (c).
  • l. New paragraph (6)(a) states that the entitlement set out in new paragraph (5) will end when the claimant ceases to meet residence and presence rules under Part 4 of the Social Security (Personal Independence Payment) Regulations 2013.
  • m. New paragraph (6)(b) states that the entitlement set out in new paragraph (5) will end when claimant becomes entitled to the daily living component of PIP as a result of a subsequent determination.
  • n. New paragraph (6)(c) states that the entitlement set out in new paragraph (5) will end after a period of 13 weeks. This period starts on the day that the determination that they cease to meet the criteria for PIP daily living mentioned in paragraph (5)(b) is made.

136. Sub-paragraph (2) stipulates that this additional requirement will come into effect on a date chosen by the Department for Communities. This change will be made by statutory rule and is intended to be implemented in November 2026 to align with the corresponding change in England and Wales.

137. Sub-paragraph (3) provides for a power to make transitional or savings provision in connection with the coming into force of sub-paragraph 1. This enables the Department for Communities in Northern Ireland to make any specific provision needed to determine the changeover from the state of the law prior to the coming into force of the Bill and following this.

138. Sub-paragraph (4) specifies non exhaustive arrangements that can be made under the power in sub-paragraph (3) including making different provision for different cases or purposes or to provide for a discretion.

Northern Ireland: corresponding provision

 

Standard allowance for tax years 2026-27 to 2029-30

 
 
1
(1)
The Department for Communities in Northern Ireland must exercise a
 
 
relevant power in order to secure that the amounts of the standard
30
 
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) .
 
 
(2)
The minimum amounts of the standard allowance for a tax year are
 
 
calculated as follows—
 
 
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.
 
 
Increase the amounts identified in Step 1 by the relevant CPI percentage
 
 
for the tax year.
 
 
Increase the amounts resulting from Step 2 by the relevant uplift percentage
5
 
for the relevant tax year.
 
 
(3)
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).
 
 
(4)
The table below sets out the relevant uplift percentage for tax years 2026-27
10
 
to 2029-30—
 
 
Tax year
 
 
Relevant uplift percentage
 
 
2026-27
 
 
2.3%
 
 
2027-28
 
 
3.1%
 
 
2028-29
15
 
4.0%
15
 
2029-30
 
 
4.8%
 
 
(5)
In this paragraph —
 
 
(a)
“consumer prices index” means the all items consumer prices index
 
 
published by the Statistics Board;
 
 
(b)
a “relevant power” means—
20
 
(i)
the power in Article 14 (2) of the Welfare Reform (Northern
 
 
Ireland) Order 2015 (S.I. 2015/2006 (N.I. 1));
 
 
(ii)
the power in section 132 of the Social Security Administration
 
 
(Northern Ireland) Act 1992 ;
 
 
(c)
“the standard allowance” means the allowance to be included in an
25
 
award of universal credit under Article 14 (1) of the Welfare Reform
 
 
(Northern Ireland) Order 2015 ;
 
 
(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
30
 
of the following tax year, and for this purpose “assessment period”
 
 
has the same meaning as in Part 2 of that Order .
 
 
(6)
In this paragraph and paragraph 3 —
 
 
(a)
“tax year” means the 12 months beginning with 6 April in any year;
 
 
(b)
“tax year 2025-26” means the tax year beginning on 6 April 2025
35
 
(and any corresponding expression in which two years are similarly
 
 
mentioned is to be read in the same way).
 

Page 11

LCWRA element for tax year 2026-27

 
 
2
(1)
The Universal Credit Regulations (Northern Ireland) 2016 (S.R. (N.I.) 2016
 
 
No. 216) are amended as follows.
 
 
(2)
In regulation 2 (interpretation), at the appropriate places insert—
 
 
““pre-2026 claimant” has the meaning in regulation 28A (1) ;”;
5
 
““severe conditions criteria claimant” has the meaning in regulation
 
 
41A (2) ;”.
 
 
(3)
In regulation 28 (award to include LCWRA element)—
 
 
(a)
in paragraph (2) , at the end insert “by reference to whether the
 
 
claimant is—
10
 
“(a)
a pre-2026 claimant,
 
 
(b)
a severe conditions criteria claimant,
 
 
(c)
terminally ill, or
 
 
(d)
any other claimant.”;
 
 
(b)
in paragraph (3) after “activity” insert “or is a severe conditions
15
 
criteria claimant”;
 
 
(c)
in paragraph (4) —
 
 
(i)
the words from “the award” to the end become
 
 
sub-paragraph (a) of that paragraph , and
 
 
(ii)
at the end of that sub-paragraph insert “, and
20
 
“(b)
where the LCWRA element for each of them is a
 
 
different amount, the LCWRA element to be
 
 
included is the higher amount.”
 
 
(4)
After regulation 28 insert—
 

“Meaning of “pre-2026 claimant”

25
 
28A.
(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
30
 
(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—
35
 
(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.”
 

Page 12

 
(5)
In regulation 38 (amounts of elements), in the table, for the row showing
 
 
the amount for limited capability for work and work-related activity
 
 
substitute—
 
 
£423.27
 
 
“pre-2026 claimant
 
 
severe conditions criteria claimant
5
 
£423.27
5
 
claimant who is terminally ill
 
 
£423.27
 
 
any other claimant with limited capability for work and
 
 
£217.26”.
 
 
work-related activity
 
 
(6)
After regulation 41 (limited capability for work and work-related activity)
 
 
insert—
10

“Severe conditions criteria claimant

 
 
41A.
(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
15
 
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
20
 
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—
25
 
(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
30
 
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
35
 
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
 

Page 13

 
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
5
 
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 ;
10
 
(iii)
section 1 (1) of the National Health Service (Scotland) Act 1978 .”
 
 
(7)
In regulation 42 (when an assessment may be carried out)—
 
 
(a)
in paragraph (1) —
 
 
(i)
in sub-paragraph (a) , after “activity” insert “or is a severe
 
 
conditions criteria claimant”;
15
 
(ii)
in the closing words, for “(4)” substitute “ (6) ”;
 
 
(b)
in paragraph (2) (b) —
 
 
(i)
the words from “that a claimant” to the end become
 
 
paragraph (i) of that sub-paragraph ;
 
 
(ii)
at the end of that paragraph insert “, or
20
 
“(ii)
that a claimant is a severe conditions criteria
 
 
claimant made on the basis of an assessment
 
 
under this Part,”;
 
 
(c)
in paragraph (2) , in the words after sub- paragraph (b) , for “no
 
 
assessment may” substitute “an assessment for the purposes of
25
 
determining whether a claimant has limited capability for work and
 
 
work-related activity may not”;
 
 
(d)
for paragraph (4) substitute—
 
 
“(4)
If it has been previously determined—
 
 
(a)
on the basis of an assessment under this Part or under Part
30
 
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
35
 
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
40
 
(b)
on the basis of an assessment under this Part that the
 
 
claimant is not a severe conditions criteria claimant,
 

Page 14

 
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—
5
 
(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.”
 
 
(8)
In regulation 44 (information requirement)—
10
 
(a)
in paragraph (1) , in the opening words, after “activity” insert “or is
 
 
a severe conditions criteria claimant”;
 
 
(b)
in paragraph (3) , 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
15
 
may be)”.
 
 
(9)
In regulation 45 (medical examination)—
 
 
(a)
in paragraph (1) , after “activity” insert “or is a severe conditions
 
 
criteria claimant”;
 
 
(b)
in paragraph (2) , for “, as the case may be, for work and
20
 
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 comes into force on 6 April 2026 and has effect in relation
 
 
to assessment periods commencing on or after that date, and for this
25
 
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)).
 

Legacy employment and support allowance

 
 
3
(1)
Paragraph 1 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
30
 
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 were to the power in section 4 (2) (a) of the Welfare Reform Act
 
 
(Northern Ireland) 2007 (c. 2 (N.I.)).
 
 
(2)
In this paragraph —
35
 
(a)
an “amount of the ESA IR personal allowance” means an amount—
 
 
(i)
that is prescribed under section 4 (2) (a) of the Welfare Reform
 
 
Act (Northern Ireland) 2007 (amount of income-related
 
 
allowance), and
 
 
(ii)
that is not an amount of a premium specified in Part 3 of
40
 
Schedule 4 to the Employment and Support Allowance
 
 
Regulations (Northern Ireland) 2008 (S.R. (N.I.) 2008 No. 280)
 
 
or an amount in respect of housing costs;
 

Page 15

 
(b)
a reference to an amount “for” a tax year means the amount
 
 
applicable for any benefit week 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 “benefit week” has the same meaning
 
 
as in the Employment and Support Allowance Regulations (Northern
5
 
Ireland) 2008 .
 

Personal independence payment eligibility

 
 
4
(1)
In regulation 5 of the Personal Independence Payment Regulations
 
 
(Northern Ireland) 2016 (S.R. (N.I.) 2016 No. 217) (scoring for daily living
 
 
activities) for paragraph (3) substitute—
10
 
“(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
15
 
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
20
 
(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
25
 
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
30
 
(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.
35
 
(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),
40

Page 16

 
(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.”
5
 
(2)
Sub-paragraph (1) comes into force on such day as the Department for
 
 
Communities in Northern Ireland may by order made by statutory rule
 
 
for the purposes of the Statutory Rules (Northern Ireland) Order 1979
 
 
(S.I. 1979/1573 (N.I. 12)) appoint.
 
 
(3)
The Department for Communities in Northern Ireland may by order made
10
 
by statutory rule for the purposes of the Statutory Rules (Northern Ireland)
 
 
Order 1979 (S.I. 1979/1573 (N.I. 12)) make transitional or saving provision
 
 
in connection with the coming into force of sub-paragraph (1) .
 
 
(4)
The power to make an order under sub-paragraph (3) includes power—
 
 
(a)
to make different provision for different cases or purposes (including
15
 
different provision for persons of different ages);
 
 
(b)
to provide for a person to exercise a discretion in dealing with any
 
 
matter.
 
Amendments

No amendments available.