The Universal Credit Act has received royal assent, formalising welfare reforms the government says will help sick and disabled people into work. Work and Pensions Secretary Liz Kendall acknowledged the passage faced a challenging process, after wider reform plans were diluted following Labour opposition. Earlier this summer, proposed changes to eligibility for the PIP element were scrapped and will be reviewed under work led by disability minister Sir Stephen Timms.

The Department for Work and Pensions announced a £338 million investment in the Connect to Work programme, which it says will provide localised, tailored support to about 85,000 sick, disabled or otherwise work‑challenged people in 15 areas across England. People can be referred by healthcare professionals, local authorities, voluntary organisations, or by themselves, to receive personalised help including coaching, job matching and ongoing support when in work. Areas include London, South Yorkshire and Greater Essex. The department estimates around 300,000 people across England and Wales will benefit over the next five years. The investment totals £338 million, equivalent to €381.9 million at current rates.

The measures will raise the standard universal credit allowance in line with inflation at least through 2029/30. For new claimants, the health element will be reduced from April 2026 unless they have a severe or terminal condition, and the rate will be frozen through 2030.