Universal Credit changes will boost millions of households by £725 | Personal Finance | Finance

In a landmark move, the Government has declared that countless households are poised for an annual income surge estimated at £725 as sweeping welfare changes make their way through Parliament, heralding the most significant reform to out-of-work support since 1980. This comes under the Government’s ambitious Plan to Change initiative, designed to bolster living standards nationwide.

The incoming legislative changes will form the largest permanent uplift in benefits for those out of work in over four decades, eradicating existing dis-incentives to employment embedded within the current welfare architecture, while simultaneously offering protection to 200,000 individuals facing severe, life-long health issues who are not anticipated to join the workforce.

The official Gov.uk website elucidates: “Alongside the Bill, disabled people and those with health conditions will have legal protections to try work without fear of reassessment.” According to the Department for Work and Pensions, there will be a substantial boost to the Universal Credit standard allowance, which is set to soar above inflation rates, projecting to a rise of £725 by the fiscal year 2029-30 for single adults aged 25 and above.

The Institute for Fiscal Studies (IFS) recognises this enhancement as the most considerable permanent escalation in real terms of the fundamental rate of out-of-work benefits witnessed since the 1980s, reports the Liverpool Echo.

This pivotal Bill, having triumphantly navigated through the Commons, is ready to embark on the next phase of its legislative journey in the Lords before advancing towards obtaining Royal Assent. Work and Pensions Secretary Liz Kendall explained: “Our reforms are built on the principle of fairness, fixing a system that for too long has left people trapped in a cycle of dependence.

“We are giving extra support to millions of households across the country, while offering disabled people the chance to work without fear of the repercussions if things don’t work out. These reforms will change the lives of people across the country, so they have a real chance for a better future.” According to official statements on Gov.uk, under the Labour government’s agenda to shield those who are most vulnerable and suffer from severe disabilities, they affirm: “individuals with the most severe, lifelong conditions who are unlikely to recover – will not be called for a UC reassessment.”

Additional details include: “We are also putting disabled people at the centre of a ministerial review of the Personal Independence Payment (PIP) assessment driven by Disability Minister Stephen Timms and co-produced with disabled people.”

The Government is also committed to ensuring that all existing Universal Credit recipients dealing with serious health issues and newcomers with less than a year to live will receive an increase in their payments that at least keeps pace with inflation annually until 2029.

Furthermore, this Parliament will see the injection of £3.8bn into employment support. The funding is earmarked for bespoke job, health, and skills initiatives designed to assist disabled individuals and those with health conditions to reintegrate into the workforce at their own pace.