The proposals, due to be set out in detail on Monday, represent one of Reform UK’s most extensive policy announcements on welfare. According to the BBC, the party says a new Health Security Allowance would replace the existing system, while support for some claimants would shift away from regular cash payments towards locally administered help with disability-related costs.
A New System Would Replace PIP and Health-Related Universal Credit
Under Reform UK’s plan, PIP and the health element of Universal Credit would be removed for working-age adults. Cash support would instead be reserved for people considered to have the most severe, enduring and high-risk conditions through a new Health Security Allowance that would be reviewed regularly.
Robert Jenrick, Reform UK’s Treasury spokesman, said 6.9 million people were receiving disability benefits. He argued that the rise had been particularly marked among claims linked to mental health and behavioural conditions. According to The Telegraph, psychiatric disorders accounted for 1,503,508 PIP cases with entitlement in 2025, while musculoskeletal conditions accounted for 1,197,871.
Existing claimants would be reassessed over a period of three to four years. Jenrick said 2.16 million people would retain their current cash entitlement in full, while 2.89 million would have payments modified or withdrawn.
For people no longer receiving cash payments, Reform proposes disability support accounts managed by councils and mayors. These would cover what the party describes as verifiable additional costs associated with disability, including equipment, home adaptations, transport and personal assistance.
The BBC also reports that Reform would spend an additional £1.85 billion a year on support including cognitive behavioural therapy, physiotherapy and employment assistance. Changes to children’s disability benefits for anxiety, depression and ADHD would apply only to new claims.
Employers Would Take on More Responsibility for Long-Term Sickness
A second part of the plan would shift some responsibility for long-term sickness from the state to employers. Businesses with more than five employees would be required to take out “Return to Work Cover”, an insurance scheme designed to meet the cost of the first two years after an employee is signed off sick.
Reform says the proposal is modelled on the Dutch system. According to The Telegraph, the party argues that disability benefit applications fell by 40 per cent under that approach. Employers would receive an initial 0.2 percentage point reduction in National Insurance contributions, which Reform says would make the change cost-neutral for businesses.
Jenrick said the arrangement would give employers a financial incentive to help staff return to work and keep workers connected to their workplace. After two years, people who had not returned would undergo a single in-person assessment conducted by clinicians.
Reform estimates that £22 billion of the proposed £50 billion in annual savings would come from changes to disability benefits. Labour has rejected the overall figure as “fantasy economics”, saying the policy would remove support from disabled people and shift costs to employers. Conservatives have also criticised the proposal while promoting their own plans for welfare reform, including face-to-face assessments and tighter eligibility rules for some claims.
