Sir Stephen Timms recently responded to a parliamentary question regarding PIP and Universal Credit
The Department for Work and Pensions (DWP) has recently confirmed its intention to complete the transition of claimants on income-related Employment and Support Allowance (ESA) to Universal Credit by March this year. Sir Stephen Timms, Minister for Social Security and Disability, also stated that this migration process will involve ESA claimants moving to the Universal Credit Health Element.
His remarks were made in a written response to Labour MP Amanda Martin, who queried whether claimants with disabilities, receiving the Personal Independence Payment (PIP) and legacy work-related benefits, would be ‘treated as new claimants for the purposes of the proposed changes to the Health Element of Universal Credit when they are migrated’.
The Portsmouth North MP also questioned whether claimants on legacy benefits transitioning to the Universal Credit system would ‘see a reduction in their income as a result of these proposed changes’.
According to the Daily Record, the DWP minister responded: “The Department plans to complete migration of ESA claimants to Universal Credit by March 2026. As part of this ESA claimants will be migrated to the Universal Credit Health Element. To protect any claimants who have not migrated by April 2026 we intend to mirror as closely as possible the changes made in Universal Credit in the ESA rates.
“Changes to the ‘support component’ and the two disability premia (severe and enhanced disability premium rates) will reflect changes to Universal Credit LCWRA ( Limited Capability for Work and Work-Related Activity) rates for existing claimants.”
He added: “Including these commensurate measures aims to give fair treatment for all customers moving onto Universal Credit from income-related ESA, regardless of their point of migration.”
The DWP has previously stated that nearly four million households will receive an annual income boost estimated to be worth £725 under new legislation to overhaul the welfare system. Changes outlined in the Universal Credit Act will seek to rebalance the core payment and health top-up in Universal Credit.
The Act will see the Universal Credit standard allowance permanently increase above inflation, reaching a total of £725 by 2029/30 in cash terms for a single person aged 25 or over.
According to the Institute for Fiscal Studies (IFS), this represents the highest permanent real-term rise in the main rate of out-of-work support since 1980.
The Universal Credit Act
The DWP explained that rebalancing of Universal Credit health and standard elements would tackle the fundamental imbalance in the system which creates perverse incentives that drive people into dependency through:
- Increasing the Universal Credit 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 health top-up for new claims to £50 per week from April 2026.
- Ensuring that all existing recipients of the Universal Credit health element – and any new claimant meeting the Severe Conditions Criteria and/or who has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher Universal Credit health payment after April 2026.
- Exemptions from reassessment for those with the most severe, lifelong conditions.
The DWP said the reforms will address the ‘fundamental imbalance in the system which creates perverse incentives that drive people into dependency’. The Act recently progressed to Royal Assent.
Alongside these alterations, the DWP has unveiled substantial new provisions, granting people on health and disability benefits the opportunity to attempt employment without the fear of reassessment.
The ‘Right to Try Guarantee’ encompasses people with disabilities or health conditions, including those recuperating from illness, who wish to re-enter employment once their well-being has improved.
All existing recipients of the Universal Credit Health Element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will also see their standard allowance combined with their Universal Credit health element rise at least in line with inflation every year from 2026/27 to 2029/30.
DWP said: “This means they can live with dignity and security, knowing the reforms to the welfare system mean it will always be there to support them.”
The DWP is also positioning disabled people at the centre of a ministerial examination of the PIP assessment headed by Disability Minister Sir Stephen Timms and co-created with disabled people, alongside the organisations that represent them, specialists, MPs and other stakeholders – ensuring it remains fair and suitable for the future.
The DWP said: “We will be engaging widely over the summer to design the process for the review and consider how it can best be co-produced to ensure that expertise from a range of different perspectives is drawn upon.
“These reforms are underpinned by a major investment in employment support for sick and disabled people – worth £3.8billion over the Parliament. Funding will be brought forward for tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.”
The department added: “This investment will accelerate the pace of new investments in employment support programmes, building on and learning from successes such as the Connect to Work programme, which are already rolling out to provide disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.”
