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Home » DWP explains work options for PIP claimants who lose benefits in major reforms
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DWP explains work options for PIP claimants who lose benefits in major reforms

By staff17 June 2025No Comments3 Mins Read

The Department for Work and Pension has published its response to the Labour Party’s Pathways to Work Green Paper – which sets out plans to reform disability and incapacity benefits

Woman shocked reading a letter
Changes are being made to the benefits system [stock image](Image: GETTY)

The Department for Work and Pensions (DWP) has outlined the work support available to disabled individuals in light of impending major cuts to Personal Independence Payment (PIP), Universal Credit and Carer’s Allowance. Labour’s Pathways to Work Green Paper is targeting a reform of disability and incapacity benefits, with an aim to encourage more people back into employment, thus reducing economic inactivity and bolstering Britain’s employment rate.

These alterations are anticipated to lead to approximately 370,000 PIP claimants losing their daily living element, while around 430,000 new applicants won’t be eligible for it from the outset.

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Furthermore, 150,000 individuals will lose their entitlement to Carer’s Allowance if the person they care for is no longer eligible for the daily living component of PIP.

Universal Credit claimants who receive the incapacity top-up for having limited capability for work and work-related activity (LCWRA) will see this payment frozen for five years, while new recipients will receive half the amount, which will also be frozen.

Some households will be impacted by changes to all three of these benefits, reports Birmingham Live. Sir Stephen Timms, DWP Minister for Social Security and Disability, has detailed the support that’s on offer to disabled individuals who are encouraged to transition into work.

He was responding to a query from Graham Leadbitter (SNP MP for Moray West, Nairn and Strathspey) regarding the effectiveness of the Disability Confident Employer Scheme and Access to Work.

The Disability Confident Employer Scheme encourages employers to foster inclusive workplaces and support disabled individuals “to get work and get on in work.”

If an employer fails to adhere to the scheme, a complaints process is in place. The DWP has the authority to suspend a business from participating if it does not meet the criteria. Sir Stephen has been exploring ways to strengthen the rules and will present proposals “in due course.”

He also mentioned that assistance is available through Access to Work, which can provide personalised discretionary grants to support disabled individuals who wish to work. In 2023/2024, the scheme assisted 67,720 people either to secure a job or maintain employment.

These grants can cover travel assistance, support workers, specialist aids and equipment, as well as mental health support for up to nine months.

Sir Stephen further stated: “All employers have a duty under the Equality Act 2010 to make reasonable adjustments in the workplace where a disabled person would otherwise be put at a substantial disadvantage compared with their colleagues.

“The Equality and Human Rights Commission (EHRC) is responsible for enforcing the Equality Act and providing guidance on reasonable adjustments.”

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