The Universal Credit Bill was introduced in the House of Lords on 10 July 2025. It is due to receive its second reading and remaining stages on 22 July 2025. It is a government bill that was originally introduced in the House of Commons with the title Universal Credit and Personal Independence Payment Bill. The speaker of the House of Commons has designated the bill as a money bill. Baroness Bennett of Manor Castle (Green Party) has tabled a non-fatal amendment to regret the motion to give the bill a second reading in the House of Lords.
Universal Credit Bill: Research briefing (361KB PDF)
Approximate read time: 30 minutes
The bill would increase the universal credit (UC) standard allowance above the rate of consumer price index (CPI) inflation each year from 2026/27 to 2029/30. The bill would reduce the UC health element for new claimants from 6 April 2026 and then freeze the rate from 2027/28 to 2029/30. The bill would also introduce financial protections for all existing UC claimants and some new claimants with the most severe or terminal health conditions. The bill would make similar changes to the rates of income-related employment and support allowance.
The bill as originally introduced in the House of Commons would have implemented two changes to the benefits system announced in the government’s ‘Pathways to work’ green paper (March 2025). The government said it would increase the UC standard allowance and decrease and then freeze the additional health element for existing and new claimants. The green paper also included proposals to tighten the eligibility criteria for the personal independence payment (PIP), which is paid to disabled people to help with the extra costs of living with a disability.
After the bill’s introduction in the House of Commons, the bill faced significant opposition from backbench Labour MPs. In response, the government announced the UC health element for existing claimants would continue to be increased in line with inflation. It then committed to remove the clause in the bill related to PIP following opposition to the policy from Labour backbench MPs and other parties during second reading. These changes were made to the bill during committee stage on 9 July 2025. The bill passed third reading in the Commons by 336 votes to 242. 47 Labour MPs voted against third reading, along with all opposition parties.
Universal Credit Bill: Research briefing (361KB PDF)
The Sovereign Grant Bill is a government bill which would amend how the sovereign grant is set. This is a grant paid to the King to support the work of the sovereign. The bill would enable the size of the sovereign grant to be reduced following the completion of a 10-year works project on Buckingham Palace. The bill received cross-party support and was not amended in the House of Commons.
The Commercial Payments Bill [HL] seeks to tackle late payments to small businesses. It would impose minimum payment periods for invoices, prohibit the use of retentions in construction contracts and provide the small business commissioner with greater powers. The bill received an unopposed second reading in the House of Lords on 9 June 2026. 30 government amendments were made to the bill at committee stage.
![Commercial Payments Bill [HL]: Progress in the Lords](https://lordslibrary-parliament.studio24.dev/content/uploads/sites/2/2020/01/Business-VIGs-568x426.jpg)
The Financial Services and Markets Bill [HL] is a wide-ranging bill that aims to reform the way the UK financial services sector is regulated. This briefing provides a summary of the bill’s second reading and committee stage in the House of Lords ahead of its further consideration at report.
![Financial Services and Markets Bill [HL]: Progress in the Lords](https://lordslibrary-parliament.studio24.dev/content/uploads/sites/2/2020/09/Economy-568x426.png)