Universal Credit and PIP Act 2025
The Universal Credit and Personal Independence Payment Act 2025 received Royal Assent on 22 July 2025. Despite the title, the Act made no changes to PIP rates or descriptors. The main change was to Universal Credit, splitting the health element into a legacy rate (~£97/week) and a lower new-claim rate (~£50/week).
Policy change · 22 July 2025Royal Assent
The Act passed both Houses and received Royal Assent on 22 July 2025, three weeks after the 4-point rule was removed from the Bill at Commons Report Stage.
What the Act DID do
- Split the UC health element into a higher legacy rate (about £97/week) for existing LCWRA claimants and a lower rate (about £50/week) for new claims after commencement.
- Introduced a "severe lifelong conditions" exemption that preserves the legacy rate for some new claimants.
- Set out the framework for a later review of award durations.
What the Act did NOT do
- Did NOT change the 2026/27 PIP rates (these are set by the Up-rating Order, not the Act).
- Did NOT introduce the proposed 4-point rule; it was removed from the Bill at Commons Report Stage on 1 July 2025 after a 49-strong Labour rebellion.
- Did NOT change PIP descriptors (these remain as set in Schedule 1 of the PIP Regulations 2013).
- Did NOT alter the PIP assessment process or evidence requirements.
What is now under review
Many of the changes originally proposed in the green paper are now sitting inside the Timms Review of PIP, due to report through 2026/27. No changes have been enacted from the Timms Review yet.