Last Updated on July 11, 2025

The Universal Credit Bill has passed through the House of Commons, with 336 votes for to 242 votes against, giving an overall majority of 94. The Bill, which had its name changed from The Universal Credit and Personal Independence Payment Bill after Government was forced by Disabled campaigners to make concessions on the Personal Independence Payment (PIP) clauses, will now go through the House of Lords.

The Bill will see the Universal Credit (UC) standard allowance set to be around £250 higher than inflation-only increases, but will cut the UC health element for new claimants by up to 50%. Critics have argued that this measure will create a loss of up to £3,000 of support per year for those affected.

The UC Bill legislates:

• Increasing the UC standard allowance above inflation for the next four years - worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
• Reducing the UC health element for new claims to £50 per week from April 2026.
• Ensuring that all existing recipients of the UC health element - and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) - will receive the higher UC health element after April 2026.
• Exemptions from reassessment for those with the most severe, lifelong conditions.

In addition, a ministerial review of the PIP assessment will led by Disability Minister Stephen Timms and co-produced with disabled people, along with the organisations that represent them, experts, MPs and other stakeholders. This is expected to conclude in Autumn 2026.

Responding to the passing of the UC Bill and on Government's commitment to co-produce future reforms, Disability Rights UK Campaigner, Mikey Erhardt, said, 'By no means does all the tireless campaigning of Disabled people to overturn the Government's reckless cuts mean that the PIP system is beyond criticism. The UN last year highlighted that over the last three years, over 600 people have died as a result of our cruel system.

'It is difficult to trust the Government's promise to co-produce a new PIP system, especially with their focus on cost-cutting, as opposed to genuine support for Disabled people. We are very concerned that PIP cuts have been postponed, not abandoned. In terms of the review process, the Government must ensure that it takes an intersectional approach, recognising and valuing our diverse Disabled community. The review process must treat us as equal partners, with equal decision-making power.

'The Government must recognise that if it wants to reform the PIP system, it must resource the co-production process, providing time, capacity, and funding to enable [Deaf and Disabled People's Organisations] DDPOs to participate. Co-production is about a shift in power dynamics - if the Government wants to co-produce with us, it must be willing to hand over some of its power to us as well.

'Any future involvement in the process will not automatically lead to our endorsement or support for any proposal the Government makes. We believe that a good future system would allow people to live dignified lives, rather than punishing them with the meagre support currently provided. At a basic level, a new PIP system would turn its back on the failed policies of the present: removing sanctions, the two-child limit, the benefit cap, and rejecting lower rates of support for those under 25. PIP support must help with the estimated £1,095 more it costs to be Disabled in the UK.

'A functioning system would not only provide material support to meet these costs for every Disabled person who calls on it but also find routes to eliminate those extra costs arising in the first place.'

Dr Sarah Hughes, Chief Executive at Mind, said, 'The Bill’s passing is a brutal blow for disabled people and a major downgrade of our social security system. Despite the removal of cuts to PIP, the Bill cements distress and hardship for any one of us who becomes unwell in the future and finds they need a safety net. It has been rushed through parliament without proper consultation or meaningful scrutiny. This is not how policies affecting hundreds of thousands of disabled people should be made.

'Cuts to Universal Credit for new recipients will push many further into poverty and isolation, forcing impossible choices between essentials like food and heating when people are at their most vulnerable. Reducing what little income UC provides will only make it harder for people with mental health problems to meet their most basic needs, connect with others and take steps towards recovery.

'We urge the UK Government to learn from this process when it undertakes its review of PIP. It is essential that disabled people, including those with mental health problems, are able to shape it, so that reforms resulting from the review are truly coproduced. We must work toward a fair, compassionate social security system that protects people’s health, dignity and independence.'

For more information about the Universal Credit Bill, visit the UK Parliament website.

In other news, the Equality and Human Rights Commission (EHRC) has launched new guidance to tackle inequality in Welsh social care.