The Department for Work and Pensions has announced important changes that will affect thousands of people
A DWP programme for tens of thousands of people has been changed in an important update. The scheme will now be offered to two extra groups of Universal Credit claimants. Thousands of young disabled people and those living with long-term health conditions are set to be offered potentially “life-changing” access to a major bid to provide them with a ‘foot in the door’ through paid work.
The new Department for Work and Pensions change will affect people receiving the health element of Universal Credit, which can entitle claimants to additional money on top of the standard allowance if they are unable to work due to a health condition or disability. Universal Credit recipients in the LCW (Limited Capability for Work) and LCWRA (Limited Capability for Work and Work-Related Activity) categories are now eligible as the scheme expands.
Government statistics from this year reveal that around 430,000 receiving the health element of Universal Credit were assessed as limited capability for work (LCW), while 2.8 million were assessed as limited capability for work and work-related activity (LCWRA).
The government is now pledging to take further steps to help them enter the jobs market. Through the programme, eligible young people on health benefits will be offered a guaranteed job on a voluntary basis from week 13 following their Work Capability Assessment.
Officials say they will receive mentoring and tailored support with their mental health, finances and housing to prepare them for employment, while employers will be supported with the costs of recruiting new staff. The government will also cover 100% of wage costs up to 25 hours per week for six months. Officials say the move marks a significant expansion of the Jobs Guarantee, a government scheme launched earlier this year for long-term unemployed young people aged 18 to 24 who have been claiming Universal Credit for 18 months.
The extension to young people on health benefits will begin from April 2027 and forms part of the government’s £3.5 billion investment aimed at addressing the UK’s persistently high disability employment gap. The reforms incorporate the ‘right to try’ guarantee announced earlier this year, which will allow those receiving sickness benefits to attempt to enter the workforce without the immediate fear of losing their entitlements.
Broadening eligibility for the scheme to young disabled people means thousands will have the opportunity to participate, with the initiative intended to help up to 90,000 young people into employment by the end of the Parliament. Tesco, business leaders and charity chiefs have all welcomed the changes.
It follows the launch of the Opening Shift programme, a new national retail work experience initiative run in partnership with the DWP, offering more than 11,000 work experience placements to young people who are furthest from the jobs market.
James Taylor, Executive Director at disability equality charity Scope, said: “This scheme could give many young disabled people a much-needed foot in the door. For too long, disabled young people have been locked out of work by barriers beyond their control. They have been overlooked when they apply for jobs, denied the support they need at work, and too often left without the opportunities they deserve.
“Young disabled people have a wealth of talent and skills, and it’s positive to see the government putting money behind them to unlock their potential. That means the right adjustments, tailored support and opportunities to move into accessible, secure, and lasting jobs.”
Laura Davis, Chief Executive of British Association for Supported Employment/Inclusive Trading, said: “It is hugely encouraging to see the government recognising the significant barriers that many young disabled, neurodivergent people and those with long-term health conditions face in accessing good careers, by extending the Jobs Guarantee to include young people on health benefits. We hope to see strong alignment with evidence-based programmes, with the right join-up, young people with the most complex support needs will not have to choose between receiving the support they need and accessing opportunities to build a meaningful career.”
Harriet Edwards, Director of Influencing at the national disability charity Sense, said: “We welcome investment that gives more young disabled people the opportunity to get into work. Too many who want to work are still locked out by barriers, including a lack of appropriate support, inaccessible workplaces and negative attitudes.
“These jobs must be accessible, work for the individual and lead to lasting opportunities. Young disabled people need tailored support and inclusive workplaces, and success should be measured not just by how many start a job, but whether they have the support and opportunities to build the future they choose.”
Dr Sarah Hughes, CEO of Mind, said: “Many young people with mental health problems tell us that they’d love to work but can’t find the right support or opportunities in order to do so. If delivered in a genuinely supportive way, this offer could be life changing for a young person struggling with their mental health.
“For far too long young people have been let down, with less opportunities and support than previous generations. Focussing on providing genuine opportunity to harness their motivations and ambitions is a really positive step forward, and we look forward to seeing the full detail.”
Emma Taylor, Chief People Officer at Tesco, said: “We welcome the Government’s expansion of the Jobs Guarantee, which will help more young people with disabilities and long-term health conditions access the opportunities, experience and support they need to get started in the world of work.”
What is Universal Credit and the work capability assessment?
Universal Credit is a monthly payment designed to assist with living costs. You may get an additional sum if you have a health condition or disability that restricts how much work you are able to do.
The Department for Work and Pensions (DWP) refers to this as your ‘capability to work’. Your monthly payment is determined by your individual circumstances, such as your health condition or disability, income and housing costs.
After you have reported your health condition or disability or a change in circumstances, you may be required to undergo a Work Capability Assessment. However, you might not be asked to complete a Work Capability Assessment if you earn more than £881 per month. Find out more on the dedicated gov.uk web page.
What are LCW and LCWRA – and what has changed in 2026?
The government says you may receive additional money on top of your standard allowance if you are unable to work due to a health condition or disability. This extra payment is intended for those who have limited capability for work and work-related activity (LCWRA). This is sometimes referred to as the ‘health element’ or the ‘LCWRA element’.
The Universal Credit Act 2025 altered how this additional amount operates from 6 April 2026. These changes will not affect you if you are currently receiving LCWRA and have been doing so since before 6 April 2026.
The LCWRA extra amount is now paid at 2 rates instead of one: a higher rate and a lower rate. The rate you receive depends on when you declared your health condition or disability, whether you have a severe, lifelong health condition or disability, and whether you are nearing the end of your life.
For further details on eligibility criteria and how the different rates are calculated, visit the dedicated government web page.
The Benefits and Work website says claimants placed in the limited capability for work (LCW) group are those whom the DWP considers are not presently capable of working, but who may become capable of work at some point in the future.
A claimant with a health condition or disability who makes a claim for UC on or after 3 April 2017, and is subsequently placed in the LCW group following a Work Capability Assessment (WCA), will not receive any additional UC payment. If you were placed in the ‘work-related activity group’ for ESA prior to 3 April 2017 and have since transferred to UC, you would be entitled to an additional UC payment for being in the LCW group.
However, you will not be subject to the same level of conditionality as claimants on JSA or those receiving UC while actively seeking employment. You are required to attend work-focused interviews and undertake work-focused activity, but you cannot be forced to apply for jobs or remain available for work.
For further information regarding the work capability assessment, visit the gov.uk web page on the subject.
