Money matters – April 2025
April 2nd 2025, by SamM
Government changes to welfare benefits
There has been much media coverage about ‘changes to benefits’ since the government published its Green Paper.
This has understandably made a lot of benefit claimants, including ccha residents and their families, feel very anxious. Note that several of these changes are still in the proposal stages, meaning they are still to be discussed and can, and likely will be, challenged.
Changes to Universal Credit (UC)
Limited Capability for Work and Work-Related Activity (LCWRA)
From April 2026, the government plans to increase the rate of the standard allowance part of UC above inflation. However, the rate of LCW/LCWRA will be frozen for existing claimants and then reduced for claimants found to have LCWRA after April 2026. People with severe and lifelong conditions will be protected.
Restricting the Daily Living Component of Personal Independence Payment (PIP)
The proposed changes would apply to new and existing claimants who have a review after November 2026. There will be no changes to the Mobility component. To receive the daily living part of PIP, claimants will need to score 4 points or more for at least one activity.
Scrapping the Work Capability Assessment (WCA)
This will be the case starting in 2028 to decide eligibility for UC and ESA’s sickness/health elements. Instead, the PIP assessment will be used.
Claimants with severe, life-long conditions will not be affected and will be paid an additional top-up element.
The government is also looking to remove the need for reassessments for people with life-long conditions that will not improve.
For more information about any of the government’s reforms to benefits, please get in touch with our Welfare Benefit Advisors on 0800 054 6710 or emailing income@ccha.biz.