The claim "Welfare reform is balancing universal credit" refers to the government's policy of "rebalancing" Universal Credit rates — increasing the standard allowance while reducing the health element for new claimants — to address perverse work incentives. **Key evidence:** 1. **Legislation passed:** The Universal Credit Bill (originally the Universal Credit and Personal Independence Payment Bill) was passed by Parliament on 9 July 2025, with a third reading vote of 336 to 242. It received Royal Assent and became the Universal Credit Act 2025. The Conservatives voted against it. 2. **Official "rebalancing" policy:** The government published an official impact assessment literally titled "Universal Credit Rebalancing impact assessment," which states the policy objective is "To tackle perverse work incentives by rebalancing UC." The specific measures include: - Increasing the UC Standard Allowance above inflation each year until 2029/30 (a 4.5% real-terms increase by 2029/30) - Reducing the LCWRA health element by approximately 50% for new claimants from April 2026 - Freezing the LCW element at 2025/26 rates - Protecting existing claimants (their combined standard allowance and health element rises at least in line with inflation) 3. **In effect as of the speech date:** The changes commenced from April 2026, meaning they were live by the time of Starmer's 3 June 2026 speech. 4. **The stated rationale matches Starmer's claim:** The impact assessment explains that the health top-up in UC is worth more than the standard allowance, creating a "perverse incentive for people to claim the health element" and trapping people out of the labour market. The rebalancing is explicitly designed to address this, aligning with Starmer's assertion that it ensures UC "no longer pushes people away from work." 5. **Important caveat — significant watering down:** The original proposals were far more aggressive (freezing the health element for existing claimants, tightening PIP eligibility, targeting £5bn in savings). After a major Labour backbench rebellion in June 2025, the government conceded: PIP changes were dropped entirely, existing UC claimants were protected from freezes, and projected savings fell to roughly £1.5–2bn. However, the core rebalancing mechanism — raising the standard allowance while cutting the health element for new claimants — remained in the final legislation. **Assessment:** The claim accurately describes a real, legislated policy action. The government did pass and implement a "rebalancing" of Universal Credit, as described in official documents. The characterization that this is designed so UC "no longer pushes people away from work" matches the stated policy objective. While the reform was significantly scaled back from original plans and its effectiveness is debatable, the core factual assertion — that the government is balancing/rebalancing Universal Credit as part of welfare reform — is accurate. The Conservatives did vote against the bill. Sources: - UK Parliament, Universal Credit and Personal Independence Payment Bill: https://bills.parliament.uk/bills/3988 - UK Government, Universal Credit Rebalancing impact assessment: https://assets.publishing.service.gov.uk/media/689ca49e1c63de6de5bb1298/withdrawn-universal-credit-bill-uc-rebalancing-impact-assessment.pdf - BBC News, "Badenoch accuses Starmer of 'giving up' on welfare reform": https://www.bbc.com/news/articles/cgep3r9yg34o - BBC News, "We've got the right balance says Keir Starmer, after benefits U-turn": https://www.bbc.co.uk/news/articles/cd78vyl3yvlo - Scope UK, "The Universal Credit Bill becomes law": https://www.scope.org.uk/news-and-stories/the-universal-credit-bill-becomes-law-here-are-the-changes-to-disability-benefits-you-need-to-know-about - Benefits and Work, "Latest on UC and PIP bill as Labour gets through third reading": https://www.benefitsandwork.co.uk/news/latest-on-uc-and-pip-bill-as-labour-gets-through-third-reading - Hansard, Prime Minister — 3 June 2026: https://hansard.parliament.uk/Commons/2026-06-03/debates/0258B9EB-0744-4475-9B89-486CC9238A26/PrimeMinister