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Universal Credit: Health

Asked by Neil Duncan-JordanLabourDepartment for Work and PensionsTabled Answered 7 April 2025UIN 42954

The question

To ask the Secretary of State for Work and Pensions, what estimate she has made of the level of saving from reducing the health element of Universal Credit in cash terms to £50 per week in 2026-27 for new claimants.

Answered by Sir Stephen Timms

The table below breaks down the overall savings into the static savings of the two policies and the impact of the expected behavioural changes. The behavioural changes are the expected impact of both policies on claimant behaviour.

DWP costings are produced at a GB level. The final line aligns the DWP estimates to the Spring Statement 2025 policy costing document which includes the impact of the Scotland Block Grant Adjustment and Northern Ireland.

Savings, £, m

2026/27

2027/28

2028/29

2029/30

Static impact: Pre-April 2026 stock freeze

490

700

900

1,090

Static impact: Post April 2026 flow reduced rate

430

1,070

1,690

2,280

Behavioural impact (of both policies combined)

-210

-300

-400

-500

Scotland Block Grant Adjustment and Northern Ireland

30

70

100

130

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