The latest on the Universal Credit Bill10 July 2025 The Labour government successfully passed its revised Universal Credit Bill through its third reading in the House of Commons (336 votes to 242), with 47 Labour MPs voting against. This followed earlier major concessions, particularly during the second reading, where PIP reforms were dropped to avoid defeat. Key points: PIP is no longer part of the bill. The controversial 4-point rule has been scrapped, and no changes to PIP will occur until after the Timms review, expected in Autumn 2026. The Timms review on disability benefits will proceed outside the bill, with a commitment to co-produce it with disabled people. From April 2026, new people claiming the Universal Credit (UC) health element will face a halved and frozen benefit, though existing people claiming Limited Capability for Work-related Activity (LCWRA) and those with severe conditions or terminal illness are exempt. The standard rate of UC is set to rise 4.5% above inflation by 2029/30. The severe conditions criteria—used to assess eligibility for higher support—remain unchanged and will be embedded in law, despite concerns from disability groups. All other welfare reforms, including changes to the Work Capability Assessment (WCA) and contributory benefits, are not part of this bill and will require separate legislation. The bill may still face scrutiny in the House of Lords, but if it is certified as a money bill, its passage will be largely procedural, meaning that there is no vote and the bill cannot be discussed or amended in any way. The changes take effect in April 2026. For a full overview of the latest on the Universal Credit Bill, visit the GOV.UK website. Rest assured that NRAS will maintain focus on representing the voice of people with RA throughout the on-going changes to the Benefits Bill. If you have any questions please contact us at campaigns@nras.org.uk.