Universal Credit Act 2025

Commons bill Government Bill 2025-26 Act of Parliament

Passed โ€” Royal Assent 3 September 2025
Sponsor
Liz Kendall (Labour)
+ 1 co-sponsor
  • Baroness Sherlock (Labour)
Introduced
18 June 2025
Royal Assent
3 September 2025
About this bill

Make provision to alter the rates of the standard allowance, limited capability for work element and limited capability for work and work-related activity element of universal credit and the rates of income-related employment and support allowance.

Parliamentary stages

Stages shown in blue link to the debate transcript. Not sure what these stages mean? How Parliament makes laws โ†’

Commons
โœ“ First reading 18 Jun 2025
โœ“ Second reading 1 Jul 2025
โœ“ Programme motion 1 Jul 2025
โœ“ Money resolution 1 Jul 2025
โœ“ Committee of the Whole House 9 Jul 2025
โœ“ Third reading 9 Jul 2025
Lords
โœ“ First reading 10 Jul 2025
โœ“ Second reading 22 Jul 2025
โœ“ Committee Negatived 22 Jul 2025
โœ“ Third reading 22 Jul 2025
Final stages
โœ“ Royal Assent 3 Sep 2025

Parliamentary information from bills.parliament.uk โ†—, licensed under the Open Parliament Licence v3.0. Explanatory Notes extracts are verbatim from Parliament's published documents.

What this bill is about

From the Explanatory Notes (July 2025):

1 The Universal Credit Bill ("the Bill") makes provisions to alter or freeze the rates of universal credit ("UC") and income-related employment and support allowance ("ESA-IR"), a related legacy benefit. These changes will increase the rate of the UC standard allowance, above the rate of inflation, as measured by the consumer prices index (CPI), in each of the next four years from 6 April 2026. The Bill will also reduce and freeze the rate of the Limited Capability for Work and Work-related Activity (LCWRA) for new LCWRA claimants from 6 April 2026 and introduce financial protections for all eโ€ฆ
Read the full Explanatory Notes โ†—