Revolutionizing Welfare: Kendall's Vision for a Fairer Benefits System

Liz Kendall, the Work and Pensions Secretary, has unveiled a bold plan to reform the UK’s welfare benefits system, aiming to reduce dependency on benefits while supporting those genuinely in need. Her proposal highlights a shift towards a more proactive, pro-work environment, specifically designed for individuals capable of employment. Key aspects of the reform include stricter eligibility criteria for disability payments, mandating that only those with the greatest needs qualify, with an overhaul of the testing system for health-related Universal Credit. This includes freezing current health-related top-ups for existing claimants and reducing payouts for new applicants, generating projected savings of over £5 billion by the 2029/30 fiscal year.

As spending on health-related benefits continues to rise, concerns have emerged from Labour MPs and charities about the potential negative impacts on vulnerable populations, prompting some adjustments to the initial proposals. Notably, the government will not implement a one-year freeze on Personal Independence Payments (PIPs), which assist individuals with long-term health issues in managing extra living costs. However, from November 2026, the criteria for scoring will become more stringent, requiring new applicants to achieve a minimum of four points in specific tasks to receive the daily living allowance.

Additionally, Kendall announced that the contentious work capability assessments—used to determine a claimant’s fitness for work—will be abolished by 2028, citing their complexity and stressfulness for individuals involved. The new approach will focus financial aid for health conditions on assessments that reflect the true impact of a person’s health issues, rather than a binary assessment of work capability. This strategic shift reflects the government’s aim to balance sustainable welfare spending with genuine support for individuals facing health challenges.