UK Government Announces Overhaul of Disability and Sickness Benefits
Significant changes targeted at personal independence payments and new measures for disabled individuals seeking employment.
The Secretary of State for Work and Pensions has unveiled substantial revisions to the United Kingdom's disability and sickness benefits system, including deep cuts to payments for many beneficiaries, while introducing protective measures for the most severely disabled individuals.
Liz Kendall emphasized that the current benefits framework was 'failing the very people it is supposed to help' and contributing to rising disability claims, with statistics indicating that one in ten working-age individuals claim sickness or disability benefits, and approximately 2.8 million people are out of work due to long-term illnesses.
Despite government assertions that the reforms are necessary, charities have voiced concerns that these changes could exacerbate poverty among disabled populations.
Key changes detailed in the announcement include:
Reform of Personal Independence Payments (PIPs): The government will implement stricter eligibility criteria for PIPs, which are benefits aimed at individuals with disabilities regardless of income or employment status.
Effective from November 2026, applicants will now need to achieve a minimum of four points in at least one monitored activity to qualify for the 'daily living element.' This scoring threshold is perceived as a high hurdle, with many common needs, such as assistance in personal care, scoring below the required minimum.
Kendall noted that other proposed measures, including the issuance of vouchers instead of cash and means testing for PIPs, had been rejected.
Adjustments to Health Top-Up Rates: The health top-up within the universal credit framework will be frozen for current claimants, while new claimants will face a reduction of £47 per week, translating to an annual loss of £2,444.
In light of these cuts, a permanent above-inflation increase to the standard rate of universal credit will be introduced, amounting to approximately £64 a month by 2029-30.
Introduction of a 'Right to Try' Work Program: This initiative allows disabled individuals the opportunity to attempt employment without fear of losing their benefit entitlements due to a reassessment of their benefits.
This program aims to encourage job-seeking behaviour among disabled people by eliminating the risk of reassessment that may accompany attempts to re-enter the workforce.
Abolishment of Work Capability Assessments (WCA): Set to be phased out by 2028, WCAs are often viewed as complex and stressful by claimants.
The reforms will instead direct extra financial support through the PIP assessment, focusing on health impacts rather than work capacity.
Increased Face-to-Face Assessments: The government intends to restore face-to-face assessments for high-benefit claimants, reversing a previous decline from 70% to only 10%.
These assessments will now be recorded to ensure transparency in the process.
Exemption from Reassessment for Severe Disabilities: Individuals with the most severe disabilities will not undergo reassessment, aimed at reducing the stress associated with the current system.
This recognizes that many such individuals experience stable, unchanging conditions.
Consultation on Unemployment Insurance Rates: The government plans to explore merging jobseeker's allowance with employment and support allowance, potentially offering higher benefit payments for those who have contributed to the system.
This change seeks to enhance income protection for eligible individuals during periods of unemployment.
Investment in Employment Programs: An investment of £1 billion will be funneled into new work programmes designed to facilitate job retention and reintegration into the workforce.
This investment includes improvements to jobcentre operations and the role of work coaches, promoting measures such as remote work options and direct referrals from GPs to employment advisors.
The initiative will feature a review led by a notable business leader to identify strategies for employers to better support disabled individuals in the workplace.
Liz Kendall emphasized that the current benefits framework was 'failing the very people it is supposed to help' and contributing to rising disability claims, with statistics indicating that one in ten working-age individuals claim sickness or disability benefits, and approximately 2.8 million people are out of work due to long-term illnesses.
Despite government assertions that the reforms are necessary, charities have voiced concerns that these changes could exacerbate poverty among disabled populations.
Key changes detailed in the announcement include:
Reform of Personal Independence Payments (PIPs): The government will implement stricter eligibility criteria for PIPs, which are benefits aimed at individuals with disabilities regardless of income or employment status.
Effective from November 2026, applicants will now need to achieve a minimum of four points in at least one monitored activity to qualify for the 'daily living element.' This scoring threshold is perceived as a high hurdle, with many common needs, such as assistance in personal care, scoring below the required minimum.
Kendall noted that other proposed measures, including the issuance of vouchers instead of cash and means testing for PIPs, had been rejected.
Adjustments to Health Top-Up Rates: The health top-up within the universal credit framework will be frozen for current claimants, while new claimants will face a reduction of £47 per week, translating to an annual loss of £2,444.
In light of these cuts, a permanent above-inflation increase to the standard rate of universal credit will be introduced, amounting to approximately £64 a month by 2029-30.
Introduction of a 'Right to Try' Work Program: This initiative allows disabled individuals the opportunity to attempt employment without fear of losing their benefit entitlements due to a reassessment of their benefits.
This program aims to encourage job-seeking behaviour among disabled people by eliminating the risk of reassessment that may accompany attempts to re-enter the workforce.
Abolishment of Work Capability Assessments (WCA): Set to be phased out by 2028, WCAs are often viewed as complex and stressful by claimants.
The reforms will instead direct extra financial support through the PIP assessment, focusing on health impacts rather than work capacity.
Increased Face-to-Face Assessments: The government intends to restore face-to-face assessments for high-benefit claimants, reversing a previous decline from 70% to only 10%.
These assessments will now be recorded to ensure transparency in the process.
Exemption from Reassessment for Severe Disabilities: Individuals with the most severe disabilities will not undergo reassessment, aimed at reducing the stress associated with the current system.
This recognizes that many such individuals experience stable, unchanging conditions.
Consultation on Unemployment Insurance Rates: The government plans to explore merging jobseeker's allowance with employment and support allowance, potentially offering higher benefit payments for those who have contributed to the system.
This change seeks to enhance income protection for eligible individuals during periods of unemployment.
Investment in Employment Programs: An investment of £1 billion will be funneled into new work programmes designed to facilitate job retention and reintegration into the workforce.
This investment includes improvements to jobcentre operations and the role of work coaches, promoting measures such as remote work options and direct referrals from GPs to employment advisors.
The initiative will feature a review led by a notable business leader to identify strategies for employers to better support disabled individuals in the workplace.
