Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential impact of raising the standard rate of Universal Credit on the number of people claiming incapacity benefits.

Universal Credit awards include a standard allowance, which is the core component of any award and is paid according to age and household unit. The purpose of the standard allowance is to provide towards basic living costs. Additional amounts are added to provide for individual needs such as housing, children, disability, and childcare costs.

On 18 March 2025 we announced the first permanent above-inflation rise in the Standard Allowance, benefitting millions of people. That is an increase of up to £775 annually in cash terms by 2029/30 for single households on UC aged over 25. This avoids people having to choose between employment or adequate financial support, and addresses the current issue where people on the health element receive over double the rate of the standard allowance, creating an incentive for people to prove they are unfit to work to claim the health element and access greater financial support.

The government will publish the OBR-certified costings of individual measures on the day of the Spring Statement on 26 March and we will be publishing estimated impacts on claimants, including for changes to the Standard Rate of Universal Credit, on the same day.