Transforming Welfare: Major Reforms to Benefits and Payments in the UK

The UK government has unveiled significant reforms to the welfare benefits system, aimed at reducing the financial burden of welfare spending. Key changes include:

Changes to Personal Independence Payment 30. New claimants will receive a reduced amount of £50 per week after 2026.

Protection for Severely Ill: New beneficiaries with lifelong severe conditions will have income protections and will not undergo future reassessments.

Universal Credit Increases: An above-inflation rise of up to £775 per year will be introduced for the standard rate for working-age claimants.

Youth Support Changes

  • Young individuals under 22 will be ineligible for incapacity benefit top-ups to universal credit. The aim is to reinvest savings into work support and training for younger populations. Discussions are underway to delay the transition from Disability Living Allowance for children to PIP from age 16 to 18.

  • Employment Support Initiatives

  • - The government seeks to reassure individuals with health issues that attempting work will not trigger automatic reassessments for PIP or incapacity benefits. Proposed legislation aims to facilitate this assurance.

  • A new “support conversation” framework will assist people with disabilities in accessing employment opportunities. Additionally, consultations regarding improvements to the Access to Work scheme will be conducted, focusing on support adaptations, such as assistive technology.

  • Funding Concerns for Scotland and Northern Ireland

  • - Any cuts to the PIP budget will proportionally affect funding to Scotland, affecting local government decisions. Northern Ireland’s benefits system, while devolved, generally mirrors changes in England and Wales, with local ministers facing similar funding dilemmas if they opt out of proposed reforms.

  • Overall, these sweeping reforms represent the government’s strategy to reshape economic support systems for health-related benefits while encouraging workforce participation. A £1 billion support initiative has also been announced to aid disabled individuals and those with chronic conditions in securing employment. (PIP)

  • Eligibility Tightening: Beginning November 2026, the eligibility criteria for PIP will become stricter, particularly affecting the daily living component, which currently starts at £72.65 per week.

  • Reassessment Frequency: More frequent reassessments for many PIP claimants will be mandated, with increased face-to-face assessments. However, individuals with profound and chronic conditions will be exempt from further reassessments.

Work Capability Assessment Scrapped

  • The work capability assessment for incapacity benefits is set to be eliminated by 2028, streamlining assessments by relying solely on the PIP framework.

Changes to Universal Credit

  • Cash Freeze: Existing incapacity benefits under Universal Credit will be frozen at £97 per week starting April next year, with no inflation adjustments until 2029

Samuel wycliffe