The government is planning adjustments to Personal Independence Payment (PIP) and Universal Credit, with a focus on reducing costs and reshaping welfare support.
According to DevonLive, the reforms set for November 2026 could lead to stricter eligibility rules, altering financial aid for many recipients. While officials emphasize the need for sustainability, concerns are rising over the potential impact on those relying on these benefits.
The changes are expected to reshape access to support, particularly for individuals with disabilities or long-term health conditions.
Stricter Eligibility for Personal Independence Payment (PIP)
PIP, a financial support program for individuals with long-term physical or mental health conditions, is currently received by 3.7 million people. It consists of two components: the daily living element, which provides assistance for routine tasks such as eating, dressing, and bathing, and the mobility element, which supports those with movement and transportation needs.
The government has confirmed that the mobility component will remain unchanged, and there will be no freeze on PIP payments or a shift to voucher-based support instead of cash benefits.
Under the proposed changes, new and existing claimants will need to meet a higher threshold to qualify for the daily living component.
Currently, individuals can accumulate low scores across multiple activities to qualify, but from November 2026, they must score at least four points in one specific activity rather than relying on lower scores spread across multiple criteria.
For instance, under the current system, needing help to wash hair or body below the waist grants two points, which could contribute to an overall qualifying score. Under the new requirement, needing help to wash between the shoulders and waist would qualify for four points, ensuring eligibility. Individuals who do not meet this threshold will lose entitlement to PIP.
The current PIP payment rates are as follows :
- Daily Living Component
- Standard rate: £72.65 per week (rising to £73.90 in April 2025)
- Enhanced rate: £108.55 per week (rising to £110.40 in April 2025)
- Mobility Component (unchanged)
- Standard rate: £28.70 per week (rising to £29.20 in April 2025)
- Enhanced rate: £75.75 per week (rising to £77.05 in April 2025)
Changes to Universal Credit and Incapacity Benefits
The reforms also impact Universal Credit, which currently supports 7.5 million people. A key shift will be the removal of incapacity benefits for individuals under 22, meaning younger claimants will no longer receive a top-up for having limited work capability due to a disability or health condition.
Currently, those assessed as having limited capacity to work receive an additional £416.19 per month. However, this top-up will be gradually reduced, dropping from £97 extra per week in 2025 to £50 per week by 2026. In contrast, the base level of Universal Credit will increase, amounting to an additional £775 per year for claimants by 2029-30.
The Work Capability Assessment (WCA)—which currently determines eligibility for the Universal Credit health-related top-up—will be abolished by 2028. Instead, health-related eligibility will be assessed through the PIP system rather than a separate evaluation.
Government’s Strategy to Encourage Employment
The government has pledged £1 billion in support for disabled individuals and those with long-term conditions to find and retain employment. As part of this plan, a “right to try” policy will be introduced, ensuring that individuals who attempt to work but cannot sustain employment will not face financial penalties.
Additionally, the Work Capability Assessment (WCA) will be eliminated by 2028, shifting health-related eligibility assessments to the PIP system instead.
The government is also considering a merger of Jobseeker’s Allowance and Employment and Support Allowance, creating a single, more generous but time-limited benefit aimed at streamlining support for job seekers with health conditions.
Motivation Behind Welfare Spending Cuts
Government spending on health and disability-related benefits has risen significantly in recent years. Currently, the UK allocates £65 billion annually to these programs, a figure projected to increase to £100 billion by 2029.
Spending on PIP alone is expected to nearly double to £34 billion within the same period.
The government justifies these reforms by pointing to the rising number of claimants receiving disability benefits for mental health or behavioral conditions.
According to the Institute for Fiscal Studies (IFS), 44% of all working-age disability claimants now cite mental health or behavioral conditions as their primary reason for receiving support.
Impact on Claimants and Future Outlook
The changes could impact up to 1.2 million claimants, particularly those who currently qualify with lower individual scores spread across multiple activities. However, the Institute for Fiscal Studies (IFS) warns that the actual impact is difficult to predict, as claimants may adapt their responses to meet the new assessment standards.
Past government efforts to cut disability-related spending have often resulted in lower-than-expected savings.
A government-led consultation on these welfare changes is ongoing, with policymakers seeking feedback from disabled individuals, advocacy organizations, and experts before finalizing the policy.
The review will be led by Sir Stephen Timms MP, Minister for Social Security and Disability. The final costings for these changes will be announced by Chancellor Rachel Reeves in the Spring Statement on March 26, 2025.
