Thousands of Brits could receive around £200 less in Universal Credit each month from today as the Department for Work and Pensions introduces major changes to health-related payments.

Under the new rules, many new claimants applying for the limited capability for work-related activity (LCWRA) element will receive just over £217 a month, down from the current rate of more than £420.

The change comes into effect at the start of the new tax year and is expected to significantly reduce support for many applicants.

The changes affect the limited capability for work-related activity (LCWRA) element of Universal Credit, which is paid to people whose health condition or disability limits their ability to work.

At the moment, this is £423.27 a month. While this will rise to £429.80 a month next week, a lower amount of £217.26 a month will be introduced, and claimants will be assessed to determine which amount they get.

Under the new system, claimants will be assessed to determine which level of support they receive, with only those meeting stricter criteria qualifying for the higher payment.

This includes people with the most severe conditions or those who are terminally ill, while the majority of new applicants are expected to fall into the lower payment group.

Advice groups have warned that the changes could have a significant financial impact.

Citizens Advice says people who apply after the new rules come into force are far more likely to receive the reduced rate, unless they have already started the assessment process or meet the strict eligibility criteria for the higher payment.

Around 1.8 million people currently receive the LCWRA element, according to the latest government figures, although the changes will mainly affect new claimants rather than those already receiving the higher payment.

Existing recipients will typically remain on the current rate, provided their circumstances do not change.

The Department for Work and Pensions will use a work capability assessment to decide how a condition affects a claimant’s ability to carry out everyday activities, which will determine the level of support they receive under the new system.