The UK government has unveiled a sweeping reform of the benefits system aimed at reducing welfare spending and encouraging more people into work. The proposed changes include stricter eligibility rules for Personal Independence Payments (PIP), the abolition of the Work Capability Assessment, and a freeze on incapacity benefits.
Stricter PIP Assessments from 2026
Personal Independence Payments (PIP), which support individuals with long-term physical or mental health conditions, will see tighter eligibility criteria from November 2026. Currently, PIP is not means-tested and is available to people in employment. The government has confirmed that payments will rise in line with inflation this year, but qualifying for the daily living component—starting at £72.65 per week—will become more difficult under the revised system.
Additionally, while the government plans to increase the frequency of face-to-face reassessments for many claimants, those with the most severe, long-term conditions will be exempt from future reassessments.
Work Capability Assessment to Be Abolished
The government plans to scrap the Work Capability Assessment in 2028. Instead, individuals applying for health-related financial support and disability benefits will undergo a single assessment based on the PIP system. This move aims to simplify the process and reduce the number of assessments claimants must undergo.
Incapacity Benefits Frozen and Reduced
Significant changes are also being introduced to incapacity benefits under Universal Credit. From April 2025, payments will be frozen at £97 per week for existing claimants, meaning they will not rise with inflation until at least 2029/30. For new claimants, the amount will be reduced to £50 per week from 2026/27.
However, individuals with severe, lifelong health conditions who are deemed unable to work will receive an additional premium to protect their income. This group will also be exempt from future reassessments.
Meanwhile, the standard rate of Universal Credit for job seekers will see an above-inflation increase, totaling an additional £775 per year by 2029/30. The government argues this adjustment will help tackle “perverse incentives” that discourage people from seeking work.
Restrictions for Young Claimants
Under the proposals, individuals under the age of 22 will no longer be eligible for the incapacity benefit top-up under Universal Credit. The government says the savings generated from this measure will be reinvested into job training and work support programs for young people.
Additionally, ministers are considering raising the age at which young people transition from Disability Living Allowance for children to PIP from 16 to 18. The Department for Work and Pensions (DWP) says the move aims to encourage work and training opportunities rather than early economic inactivity.
Encouraging Employment Through Reforms
The government is introducing measures to ease concerns among benefit recipients about losing support if they attempt to work. Legislation will be introduced to ensure that taking a job will not automatically trigger a reassessment for PIP or the new work-related benefits system.
A new “support conversation” initiative will be introduced to assist those with disabilities or long-term conditions in accessing employment opportunities. Consultations will also take place on reforms to the Access to Work scheme, which provides workplace adjustments such as assistive technology to help people remain employed.
Work and Pensions Secretary Liz Kendall has announced a £1 billion package aimed at supporting disabled people and individuals with long-term conditions in securing and maintaining jobs.
Impact in Scotland and Northern Ireland
While most of the proposed changes apply to England and Wales, Scotland and Northern Ireland have devolved control over certain aspects of the benefits system.
PIP applies only to England and Wales, but if the UK government reduces its budget, the Scottish government will face a proportional funding cut. Ministers in Scotland will have the choice of applying similar reductions or offsetting the shortfall through alternative funding sources, such as tax increases or budget reallocations.
In Northern Ireland, the benefits system is largely modeled on policies in England and Wales. If local ministers choose not to implement the cuts, they will need to fund the difference by reallocating resources or raising additional revenue.
Next Steps
The proposed reforms signal a major shift in the UK’s approach to welfare, with a focus on reducing long-term benefit dependency while encouraging employment. Consultations and legislative processes are expected to follow, as the government moves toward implementing these changes over the coming years.
