DWP handing millions on Universal Credit born before 2004 free £424

The Department for Work and Pensions (DWP) has announced a significant increase in Universal Credit for single individuals aged 25 and over, potentially boosting weekly payments to approximately £106—or £424 a month—by the end of this parliamentary term. This would apply to anyone born before 2004 and is part of broader welfare reforms aimed at updating Universal Credit and the Personal Independence Payment (PIP) system.

According to the DWP’s newly proposed Bill, this increase in Universal Credit is part of efforts to rebalance the welfare system. The Bill also introduces a new condition for PIP eligibility, requiring individuals to score at least four points on at least one daily living activity to qualify for the daily living component. These changes are set to roll out over the coming years, with most fully in place by 2029 and 2030.

Liz Kendall, the Labour Party MP and Work and Pensions Secretary, outlined the reforms in a recent speech at the Institute for Public Policy Research (IPPR). She emphasized that support for people with severe, lifelong conditions will be safeguarded. Individuals under 22 who are unable to work due to their disabilities will have their Universal Credit protected and will no longer be subject to repeated reassessments—a move aimed at reducing anxiety and stress among claimants.

Kendall also committed to improving trust in the welfare system by enhancing safeguarding procedures and staff training. She stated that the government will focus PIP support on individuals with the most significant needs and will review the PIP assessment process to ensure it is fair, transparent, and appropriate. While she acknowledged public concerns about the proposals, she assured that 90% of people receiving PIP at the time of the changes in November 2026 will not see their benefits affected by the end of the Parliament.

However, the proposed reforms have raised alarm among disability advocacy groups. A spokesperson from Disability Wales expressed deep concern, saying the government's recent proposals, including the “Pathways to Work” Green Paper and measures outlined in the Chancellor’s Spring Statement, amount to a potential £5 billion reduction in disability benefits. This could translate to a loss of up to £4,500 per year for disabled individuals in Wales—jeopardizing their ability to pay heating bills, afford meals, and access necessary care.

Disability Wales warned that these cuts could have a devastating impact on the everyday lives, dignity, and independence of disabled people. They stressed that instead of helping individuals overcome employment barriers, the new measures risk worsening poverty and exclusion. The organization urged policymakers to consider the serious human cost of these proposals and to focus on creating a welfare system that supports, rather than punishes, vulnerable members of society.