The Department for Work and Pensions (DWP) is set to introduce major changes to health and disability benefits in the coming weeks. These reforms will be outlined in a Green Paper, which will include a public consultation before Chancellor Rachel Reeves’ Spring Statement on March 26. The proposed adjustments are expected to affect recipients of Personal Independence Payment (PIP), Employment and Support Allowance (ESA), and Universal Credit.
Planned Reforms and Public Consultation
According to Sir Stephen Timms, Minister for Social Security and Disabilities, the DWP aims to restructure the health and disability benefit system to better support individuals with long-term health conditions while also facilitating employment.
To ensure the reforms reflect the needs of those affected, the government will initiate a public consultation, engaging with disabled individuals, advocacy groups, and other stakeholders. The Health Transformation Programme, which is designed to modernize the PIP service, will be central to these changes. The program aims to improve:
- Eligibility assessments – Simplifying the process for claimants.
- Decision-making procedures – Reducing delays and inconsistencies.
- Payment processing – Enhancing efficiency and reducing backlogs.
Additionally, stakeholder roundtables and public visits have already started to gather feedback ahead of the formal consultation process.
Addressing the Rising Cost of Disability Benefits
The government has cited rising welfare costs as a key factor behind these proposed reforms. Work and Pensions Secretary Liz Kendall stated that the welfare budget must be placed on a more sustainable path, particularly as spending on disability benefits has increased significantly.
According to Kendall, one of the government’s priorities is to increase employment rates among individuals with long-term health conditions. She outlined several challenges contributing to high welfare spending:
- A record number of people out of work due to long-term health problems.
- The impact on public finances, with disability benefit spending exceeding initial estimates.
- Difficulty for employers in recruiting workers, as many individuals remain outside the workforce.
To address these concerns, the DWP is expected to introduce Jobcentre reforms alongside the benefit system overhaul, aiming to help more people transition back into employment.
The Government’s Position on Financial Sustainability
The welfare cap for 2024/25 was originally set at £137.4 billion, but the government now projects that it will exceed this limit by £8.6 billion. Liz Kendall attributed this increase to previous Conservative governments’ policies, which she claimed failed to control spending and encourage employment.
Chancellor Rachel Reeves emphasized in her recent economic growth speech that the government is committed to “fundamental reform of our welfare system”, particularly in areas that have long been overlooked, such as the growing cost of health and disability benefits.
Next steps and public involvement
The DWP’s Green Paper will formally introduce the public consultation phase, allowing affected individuals, advocacy groups, and policymakers to review and provide input on the proposed changes.
Key next steps include:
- Publication of the Green Paper before March 26.
- Engagement with stakeholders through consultations, meetings, and public forums.
- Evaluation of feedback before implementing policy adjustments.
While the specifics of the reforms have yet to be confirmed, benefit claimants will have the opportunity to participate in discussions and influence the final decisions before any changes take effect.
