The government’s announcement on changes to Personal Independence Payments, support for people living with disabilities – ‘welfare reform’, changes to the social security system.

The Government published its Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper consultation on March 18th.

The government hopes to save £5 billion with these changes.

The following is a summary of the headline proposed social security benefit reforms:

Work Capability Assessment.

The Work Capability Assessment (WCA) will be scrapped in 2028: “This will end the state categorising people into binary groups and labelling them as either ‘can or can’t work’.” 

Instead, extra financial support for health conditions in Universal Credit (UC) will be assessed via a single assessment – the Personal Independence Payment (PIP) – and be based on the impact of disability on daily living, not on capacity to work.

 The Government says that “This change will be non-negotiable … We will implement this change via primary legislation. Further details will be published in the forthcoming White Paper. We are not consulting on this measure.”

Under this new system, financial support from PIP (non-means tested) and the health element of UC (means-tested) will both be non-work related.

However, the Government will also be legislating to guarantee that work in and of itself will not lead to someone being called for a reassessment or award review, this is to say, their PIP being re-assessed.

Universal Credit (UC).

The Health Element top-up will be denied to under-22s to prevent a direct path from education to benefits.

The top-up will also be cut for new claimants – from £97 to £50 per week by 2026/27 – a cut of more than £2,000 a year – and frozen for existing ones – 

The top rate of Universal Credit for the most disabled will be cut (details to follow in Chancellor’s 26 March Spring Statement), but the standard rate will rise above inflation for the first time, reaching a £775 annual increase by 2029-30

Personal Independence Payment (PIP).

PIP is paid to people in England and Wales who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition.

It is not means tested and is available to people who are working.

The payments will go up in line with inflation this year.

But the eligibility criteria will be tightened up from November 2026, potentially resulting in reduced payments for many.

It will become harder to qualify for the daily living component of PIP, which starts at £72.65 a week. There will be no change to the mobility component.

There will also be a review of the PIP assessment process.

The Green Paper proposes that PIP be more “focussed more on those with higher needs” but will remain non-means tested.

However, there will be a shift face to face assessment “while ensuring we continue to meet the needs of our people who are claiming, who may require a different method of assessment (e.g., due to the need for a reasonable adjustment).”

A new PIP eligibility requirement is proposed to ensure that only those who score a minimum of 4 points in at least one daily living activity will be eligible for the daily living component of PIP. This requirement would need to be met in addition to the existing PIP eligibility criteria.

This means that people judged to have lower needs only in the daily living activities (scoring 3 or less for each activity) will no longer be eligible for the daily living component of PIP. People with a higher level of functional need in at least one activity will still receive PIP.

This change will be introduced through primary legislation. It will apply to new claims and for existing people who claim, future eligibility will be decided at their next award review. This change means that people could lose entitlement to the daily living element of PIP and potentially other entitlements linked to this award.

The Green Paper is consulting on whether those who lose entitlement need any support and what this support could look like – for example transitional protection.

The Government will also launch a process to review the PIP assessment: “This is a major undertaking which will take time and require extensive engagement, so any changes to the PIP assessment would only be introduced following the reforms set out in this Green Paper. 

“To make sure we get this right, we will bring together a range of experts, stakeholders and people with lived experience to consider how best to do this and to start the process as part of preparing for a review.

The government wants more frequent reassessments for many people claiming PIP with more face-to-face assessments.

But those with the most severe, long-term conditions will no longer face any reassessments, under the proposed reforms.

A new contribution-based Unemployment Insurance Benefit. 

The Green Paper asks views on replacing New Style Employment and Support Allowance (ESA) and New Style Jobseeker’s Allowance (JS) with one new Unemployment Insurance benefit. The rate of financial support would be set at the current higher rate of NS ESA. The benefit would not require a health assessment and would be based on an individual’s National Insurance record as is currently the case. Those with long term health conditions, would also be able to claim other relevant benefits where eligible.

Reduced incapacity benefits for under 22s.

Those aged under 22 will no longer be able to claim the incapacity benefit top-up to universal credit under these proposals.

The government says any savings generated from the delay would be reinvested into work support and training opportunities for this age group.

Ministers are also consulting on raising the age at which young people move from Disability Living Allowance for children to Pip from 16 to 18.

The idea is that young people will have work and training “rather than a pathway to economic inactivity”, the DWP says.

More incentives to work.

The government says it wants to ease people’s fears about losing benefits if they take a job and it doesn’t work out.

Ministers say they will introduce legislation “as soon as possible” to guarantee that trying work will not lead to an automatic Pip or work capability reassessment.

It’s hoped a newly-designed “support conversation” will give people who have a health condition or disability help to access work.

Consultations will start on the Access to Work scheme, looking at improvements to help people stay in the workplace, with adjustments like aids or assistive tech.

Overall, Work and Pensions Secretary Liz Kendall announced a £1bn package of support to help disabled people and those with long-term conditions into work.

Citizens Advice’s national response:

Responding to the government’s announcement on welfare cuts, Dame Clare Moriarty, Chief Executive of Citizens Advice, said: 

“This government says it wants to boost living standards and tackle child poverty, but you can’t do that while slashing support for those who need it most. Yes, the benefits system needs fixing, but these plans will just make life harder for those already struggling.

“Our data is clear: disabled people already struggle with financial issues more than others. Many people getting disability benefits are also raising children so these cuts will send even more families to food banks. 

“We need a benefits system that helps people solve their problems, not create new ones.”

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper is available at gov.uk

A number of national charities, including Citizens Advice, wrote to the Chancellor of the Exchequer last week about the costs of living with disabilities.

https://www.scope.org.uk/campaigns/open-letter-to-the-chancellor-the-cost-of-cuts-to-disability-benefits#:~:text=We%20want%20disabled%20people%20to,of%20cuts%20is%20too%20great.

 

Tom Togher

March 19th 2025.