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.

The information below was generated through an automated process and is for information purposes only.

This is the latest version of the Bill

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
HL Bill 123 (as brought from the Commons)
Explanatory Note
HL Bill 123 Explanatory Notes
Impact Assessment
The Universal Credit Bill: Universal Credit Rebalancing Impact Assessment 7 July 2025

Amendment Filters

Your selections will update the bill and amendment list to show only amendments matching your chosen criteria.

Amendment Type

Amendment Status

Display Options

Show Latest Version
Amendment Glossary

This glossary explains the colour coding used to indicate the type of amendment.

Type Description
Black center indicates Government or Bill Sponsor amendment
Front Bench Amendment from any Opposition Party indicated by party colour
Back Bench Amendment from any MP - Outline Colour indicates party

Page 1

Universal credit

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

Source HL Bill 123 Explanatory Notes

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

50. 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).

51. 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).

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

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

54. 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.

55. 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

56. 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
5
 
(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
10
 
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
15
 
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
20
 
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).
 

Page 2

 
(4)
The table below sets out the relevant uplift percentage for tax years 2026-27
 
 
to 2029-30—
 
 
Tax year
 
 
Relevant uplift percentage
 
 
2026-27
 
 
2.3%
 
 
2027-28
5
 
3.1%
5
 
2028-29
 
 
4.0%
 
 
2029-30
 
 
4.8%
 
 
(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
10
 
of the standard allowance.
 
 
(6)
In this section —
 
 
(a)
“consumer prices index” means the all items consumer prices index
 
 
published by the Statistics Board;
 
 
(b)
a “relevant power” means—
15
 
(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
 
 
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
20
 
Act 2012 ;
 
 
(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
25
 
meaning as in Part 1 of that Act .
 
 
(7)
In this section and sections 3 to 5 —
 
 
(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
30
 
mentioned is to be read in the same way).
 
"LCWRA element for tax year 2026-27"

Source HL Bill 123 Explanatory Notes

57. Clause 2 amends Regulation 36 of the Universal Credit Regulations 2013 to create two different rates of the LCWRA element of UC. The rate for pre-2026 claimants, terminally ill claimants and claimants who meet SCC is to be calculated using the approach in clause 4. There is a lower rate for all other claimants

58. Subsection (1) amends the table of amounts in regulation 36 of the Universal Credit Regulations 2013 to create two rows for LCWRA, one for those defined as pre-2026, terminally ill or SCC claimants and one for all other claimants. The rate of LCWRA is specified for all claimants except those who are defined as pre-2026, terminally ill or SCC claimants.

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

60. 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
 
 
(1)
In the table in regulation 36 of the Universal Credit Regulations 2013 (amounts
 
 
of elements)—
 
 
(a)
before the row showing the amount for limited capability for work
35
 
and work-related activity (“the existing row”) insert—
 
 
“claimant with limited capability for work and
 
 
£217.26”;
 
 
work-related activity, other than a pre-2026 claimant,
 

Page 3

 
a severe conditions criteria claimant or a claimant who
 
 
is terminally ill
 
 
(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”.
5
 
(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
10
 
Welfare Reform Act 2012 .
 
"Freeze of LCWRA and LCW elements for tax years 2026-27 to 2029-30"

Source HL Bill 123 Explanatory Notes

61. Clause 3 removes the Secretary of State's annual duty to review LCWRA and LCW elements of UC for tax years 2026-27 to 2029-30. This freezes the amount paid through the LCW element and freezes the amount paid through LCWRA for new determinations from 6 April 2026.

62. 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.

63. 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
15
 
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
20
 
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).
 
"Protected LCWRA amount for tax years 2026-27 to 2029-30"

Source HL Bill 123 Explanatory Notes

64. Clause 4 sets out how the financial protections for all existing UC LCWRA claimants, and new claimants who meet the SCC or SREL requirements from 6 April 2026 should be applied in each of the tax years from 2026-27 to 2029-30.

65. Subsection (1) and subsection (2) provide that the Secretary of State must use the power in section 9(2) or 12(3) of the Welfare Reform Act 2012 for each of the tax years 2026-27 to 2029-30 to increase either the protected LCWRA amount or any amount of the standard allowance such that the combined sum of the protected LCWRA amount and the standard allowance for the previous year will be increased by at least the relevant CPI percentage for the current tax year.

66. Subsection (3) defines the terms "the protected LCWRA amount”, “the LCWRA element", "the standard allowance”, “for” a tax year and “assessment period".

67. Subsection (4) provides for the meanings of the "relevant CPI percentage" and the "consumer prices index".
4
Protected LCWRA amount for tax years 2026-27 to 2029-30
25
 
(1)
Where it is necessary in order to achieve the result in subsection (2) 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 to increase—
 
 
(a)
the protected LCWRA amount for that tax year, or
 
 
(b)
any amount of the standard allowance for that tax year.
30
 
(2)
The result to be achieved for a tax year (“the current tax year”) is that for
 
 
each combination of the protected LCWRA amount and an amount of the
 
 
standard allowance, 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
35
 
(b)
the relevant CPI percentage for the current tax year.
 
 
(3)
In this section —
 
 
(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
40
 
the Universal Credit Regulations 2013 );
 

Page 4

 
(b)
“the LCWRA element” has the meaning it has in section 3 ;
 
 
(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)
reference to an amount or allowance “for” a tax year means the amount
5
 
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 .
 
 
(4)
In this section and in section 5 —
10
 
(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);
 
 
(b)
the “consumer prices index” means the all items consumer prices index
15
 
published by the Statistics Board.
 
"Legacy employment and support allowance payments"

Source HL Bill 123 Explanatory Notes

68. Clause 5 applies changes to ESA-IR that mirror the changes made to UC by clauses 1-4. Namely, it applies above inflation increases to the ESA-IR personal allowance over the four years from 2026/27 and removes the work-related activity and support components from the uprating review over the same period. Clause 5 also acts to remove the rates of SDP and EDP from the uprating review for the same period.

69. 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).

70. 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.

71. 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, EDP, and the support and work-related activity components of ESA-IR.

72. Subsection (3) provides that the Secretary of State must use the power in section 4(2)(a) or 6(c) of the Welfare Reform Act 2007 in the tax years 2026-27 to 2029-30 to increase any amount of an ESA-IR disability premium, the ESA-IR support component, or the ESA-IR personal allowance for the previous tax year that a person may be entitled to, in order to achieve the result provided for in subsection (4).

73. Subsection (4) provides that the result that the Secretary of State must achieve each year is that the total sum of any combination of the ESA-IR personal allowance, the ESA-IR support component and any ESA-IR disability premium which a person could be entitled to should increase each tax year by at least the relevant CPI percentage for that tax year.

74. Subsection (5) defines terms used in this clause.

  • a. Subsection (5)(a) defines an "amount of the ESA-IR personal allowance" using a two-stage cumulative definition as being (i) an amount prescribed under section 4(2)(a) of the Welfare Reform Act 2007 (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 (5)(b) defines an “amount of an ESA-IR disability premium” as relating to SDP or EDP only in this context.
  • c. Subsection (5)(c) defines “the ESA-IR support component".
  • d. Subsection (5)(d) defines “the ESA-IR work-related activity component"
  • e. Subsection (5)(e) defines the references to an amount or component "for" a tax year.
5
Legacy employment and support allowance payments
 
 
(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
20
 
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 .
 
 
(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
25
 
sums—
 
 
(a)
any amount of an ESA IR disability premium;
 
 
(b)
the ESA IR support component;
 
 
(c)
the ESA IR work-related activity component.
 
 
(3)
Where it is necessary in order to achieve the result in subsection (4) for any
30
 
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 to increase—
 
 
(a)
any amount of an ESA IR disability premium for that tax year,
 
 
(b)
the ESA IR support component for that tax year, or
 
 
(c)
any amount of the ESA IR personal allowance for that tax year.
35
 
(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) (a) to (c) 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
40
 
(b)
the relevant CPI percentage for the current tax year.
 
 
(5)
In this section —
 
 
(a)
an “amount of the ESA IR personal allowance” means an amount—
 

Page 5

 
(i)
that is prescribed under section 4 (2) (a) of the Welfare Reform
 
 
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;
5
 
(b)
an “amount of an ESA IR disability premium” means an amount of
 
 
the severe disability premium or enhanced disability premium specified
 
 
in Part 3 of Schedule 4 to the Employment and Support Allowance
 
 
Regulations 2008 , so far as prescribed under section 4 (2) (a) of the
 
 
Welfare Reform Act 2007 ;
10
 
(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)
 
 
of the Welfare Reform Act 2007 ;
 
 
(d)
“the ESA IR work-related activity component” means the amount
15
 
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
 
 
cases falling within paragraphs 2 to 7 of Schedule 2 to the Employment
 
 
and Support Allowance and Universal Credit (Miscellaneous
20
 
Amendments and Transitional and Savings Provisions) Regulations
 
 
2017 ;
 
 
(e)
a reference to an amount or component “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
25
 
following tax year, and for this purpose “benefit week” has the same
 
 
meaning as in the Employment and Support Allowance Regulations
 
 
2008 .
 

Corresponding provision for Northern Ireland

 
"Corresponding provision for Northern Ireland"

Source HL Bill 123 Explanatory Notes

75. 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
30
 
Schedule 2 makes provision for Northern Ireland which corresponds to that
 
 
made by the previous provisions of this Act.
 

Short title

 
"Short title"

Source HL Bill 123 Explanatory Notes

76. Clause 7 sets out that this Act may be cited as the Universal Credit Act 2025
7
Short title
 
 
This Act may be cited as the Universal Credit Act 2025.
35

Page 6

Schedules

 
 
Schedule 1
Section 2
 
"Amendments to the"

Source HL Bill 123 Explanatory Notes

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

78. 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).

79. 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.

80. 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 an 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).

81. 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.

82. 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 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.

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

84. 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.

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

86. 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.

87. 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.

88. 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.

89. 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.

90. 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.

91. 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 HL Bill 123 Explanatory Notes

92. 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.

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

94. 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.

95. 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).

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

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

98. 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.

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

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

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

102. 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).

103. 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.

104. 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.

105. 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.

106. 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.

107. Sub-paragraph (5) amends the table of amount of elements in regulation 38 of the Universal Credit Regulations (Northern Ireland) 2016 and creates two rates of LCWRA. One rate is for pre-2026, terminally ill, or severe conditions criteria claimants, and the other rate is for all other claimants.

108. 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 the 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 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.
  • 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 will have the mental illness 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.

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

110. 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.

111. 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.

112. 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.

113. 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.

114. 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.

115. 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.

116. Paragraph 3 (Protected LCWRA amounts for tax years 2026-27 to 2029-30) corresponds to clause 4. It sets out how the financial protections for all existing UC LCWRA claimants, and new claimants who meet the SCC or SREL requirements from 6 April 2026 should be applied in each of the tax years from 2026-27 to 2029-30.

117. Sub-paragraph (1) and (2) sets out the requirement for the Department for Communities to use the powers under Article 14(2) or 17(3) of the Welfare Reform (Northern Ireland) Order 2015 for each of the tax years 2026-27 to 2029-30 to increase either the protected LCWRA amount or any amount of the standard allowance such that the combined sum of the protected LCWRA amount and the standard allowance for the previous year will be increased by at least the relevant CPI percentage for the current tax year.

118. Sub-paragraph (3) defines the terms "the protected LCWRA amount”, “the LCWRA element", "the standard allowance”, “for” a tax year and “assessment period".

119. Sub-paragraph (4) provides for the meanings of the "relevant CPI percentage" and the "consumer price index".

120. Paragraph 4 (Legacy employment and support allowance) corresponds to clause 5.

121. 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 Article 14(2) of the Welfare Reform (Northern Ireland) Order 2015 and 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)

122. Sub-paragraph (2) provides that the Department for Communities use powers in section 4(2)(a) or 6(c) of the Welfare Reform Act 2007 in the tax years 2026-27 to 2029-30 to increase any amount of an ESA-IR disability premium, the ESA-IR support component, or the ESA-IR personal allowance for the previous tax year to achieve the result provided for in sub-paragraph (3).

123. Sub-paragraph (3) provides that the result that the Department of Communities must achieve each year is that any combination of the ESA-IR personal allowance, the ESA-IR support component and any ESA-IR disability premium which a person could be entitled to should increase each tax year by at least the relevant CPI percentage for that tax year.

124. Sub-paragraph (4) defines various terms used in the paragraph.

125. Sub-paragraph (4)(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.

126. Sub-paragraph (4)(b) defines the references to an amount “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.

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 paragraphs 3 and 4 —
 
 
(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 the table in regulation 38 (amounts of elements)—
 
 
(a)
before the row showing the amount for limited capability for work
 
 
and work-related activity (“the existing row”) insert—
 
 
“claimant with limited capability for work and
 
 
£217.26”;
 
 
work-related activity, other than a pre-2026 claimant,
5
 
a severe conditions criteria claimant or a claimant
 
 
who is terminally ill
 
 
(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”.
10
 
(6)
After regulation 41 (limited capability for work and work-related activity)
 
 
insert—
 

“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
15
 
on the basis of an assessment under this Part.
 
 
(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
20
 
41(2)), and
 
 
(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
25
 
listed in Schedule 7, it is a condition that the claimant’s incapability to
 
 
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
30
 
(ii)
that has been diagnosed by an appropriately qualified health
 
 
care professional in the course of the provision of health and
 
 
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—
35
 
(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
 
 
social care services.
 

Page 13

 
(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
 
 
that descriptor.
 
 
(5)
In this regulation “health and social care services” means—
5
 
(a)
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 ;
 
 
(b)
health care services provided for the purposes of the health service
 
 
continued under—
10
 
(i)
section 1 (1) of the National Health Service Act 2006 ;
 
 
(ii)
section 1 (1) of the National Health Service (Wales) Act 2006 ;
 
 
(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) —
15
 
(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) —
 
 
(i)
the words from “that a claimant” to the end become
20
 
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
 
 
under this Part,”;
25
 
(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”;
 
 
(d)
for paragraph (4) substitute—
30
 
“(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
 
 
(b)
on the basis of an assessment under this Part that the
35
 
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—
 
 
(a)
on the basis of an assessment under this Part or under Part
40
 
4 or 5 of the ESA Regulations that the claimant has limited
 
 
capability for work, and
 

Page 14

 
(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.
5
 
(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
10
 
to the claimant’s physical or mental condition.”
 
 
(8)
In regulation 44 (information requirement)—
 
 
(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
15
 
work-related activity” substitute “for work and work-related activity
 
 
or as not being a severe conditions criteria claimant (as the case
 
 
may be)”.
 
 
(9)
In regulation 45 (medical examination)—
 
 
(a)
in paragraph (1) , after “activity” insert “or is a severe conditions
20
 
criteria claimant”;
 
 
(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)”.
25
 
(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)).
 

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

30
 
3
(1)
Where it is necessary in order to achieve the result in sub-paragraph (2)
 
 
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 to increase—
 
 
(a)
the protected LCWRA amount for that tax year, or
35
 
(b)
any amount of the standard allowance for that tax year.
 
 
(2)
The result to be achieved for a tax year (“the current tax year”) is that for
 
 
each combination of the protected LCWRA amount and an amount of the
 
 
standard allowance, the sum of those amounts for the current tax year is
 
 
at least (in each case) the amount given by increasing—
40
 
(a)
the sum of those amounts for the previous tax year, by
 
 
(b)
the relevant CPI percentage for the current tax year.
 

Page 15

 
(3)
In this paragraph —
 
 
(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)
5
 
2016 );
 
 
(b)
“the LCWRA element” has the meaning given by regulation 28 of
 
 
those Regulations ;
 
 
(c)
“the standard allowance” means the allowance to be included in an
 
 
award of universal credit under Article 14 (1) of the Welfare Reform
10
 
(Northern Ireland) Order 2015 ;
 
 
(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
15
 
“assessment period” has the same meaning as in Part 2 of that Order .
 
 
(4)
In this paragraph and in paragraph 4 —
 
 
(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
20
 
(or 0% if it is not higher);
 
 
(b)
the “consumer prices index” means the all items consumer prices
 
 
index published by the Statistics Board.
 

Legacy employment and support allowance

 
 
4
(1)
Paragraph 1 applies in relation to the amounts of the ESA IR personal
25
 
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 were to the power in section 4 (2) (a) of the Welfare Reform Act
 
 
(Northern Ireland) 2007 (c. 2 (N.I.)).
30
 
(2)
Where it is necessary in order to achieve the result in sub-paragraph (3)
 
 
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
35
 
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) for that tax year (so far as prescribed under section
 
 
4(2)(a) of that Act),
 
 
(b)
the amount specified in paragraph 13 of Part 4 of that Schedule for
40
 
that tax year (so far as specified under section 4(6)(c) of that Act),
 
 
or
 
 
(c)
any amount of the ESA IR personal allowance for that tax year.
 

Page 16

 
(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) (a) to (c) 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
5
 
(b)
the relevant CPI percentage for the current tax year.
 
 
(4)
In this paragraph —
 
 
(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
10
 
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 (Northern Ireland) 2008 (S.R. (N.I.) 2008 No. 280)
 
 
or an amount in respect of housing costs;
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
20
 
Ireland) 2008 .
 
Amendments

No amendments available.