Liz Kendall has today unveiled a huge overhaul of sickness and disability benefits – with plans to slash around £5billion from the welfare bill. Here The Mirror looks at the details
Work and Pensions Secretary sets out overhaul of benefits system
Liz Kendall has today unveiled a huge overhaul of sickness and disability benefits – with plans to slash around £5billion from the welfare bill.
The Work and Pensions Secretary confirmed an overhaul of Personal Independent Payments (PIP) and Universal Credit as she warned the social security system is “failing the very people it is supposed to help and holding our country back”.
But she faced an immediate backlash over the plans, which were branded “cruel and devastating cuts” by disability charities. One Labour MP even warned ministers against seeking to balance the public finances on the backs of some of the poorest people in society. Labour MP Debbie Abrahams, who chairs the Work and Pensions Committee, told MPs the reforms represented the biggest cut to social security in a decade.
Many of the grim details – including the number of people impacted and the consequences on poverty levels – have been delayed. A promised impact assessment of the changes will instead be published next week alongside the Chancellor Rachel Reeves’s Spring Statement.
But here The Mirror looks at some of the key changes outlined in the Department for Work and Pensions (DWP) 84-page green paper published today.
PIP eligibility tightened
The most controversial change announced today is the tightening of eligibility for Personal Independence Payments – or PIP – which is paid regardless of employment status.
It is also where the government aims to make the bulk of savings (cuts) to the welfare bill.
The support works in two parts with claimants scored with points by the DWP. The first element is used to help with everyday tasks such as eating and drinking, using the toilet and bathing. A second element is used to help those with mobility problems and have issues with physically moving around and leaving their home.
READ MORE: Liz Kendall confronted by furious Labour MPs over DWP cuts – ‘show more compassion’
Under changes unveiled today the DWP says a new requirement will be introduced to “ensure only those who score a a minimum of four points in at least one daily living activity will be eligible for the daily living component of PIP”.
The green paper says: “This means that people who have lower needs only in the daily living activities (scoring three or less for each activity) will no longer be eligible for the daily living component of PIP.” It adds: “This change means that people could lose entitlement to the daily living element of PIP and potentially other entitlements linked to this award.”
The Resolution Foundation think-tank believes the tighter restrictions on PIP benefits could mean around one million people potentially at risk of losing support.
PIP freeze and vouchers ruled out
A leak of the government’s plans to reform sickness and disability benefits also contained proposals to freeze PIP.
This would have essentially meant a real-terms cut to the benefit next year – with the most severly disabled people potentially impacted. But after a massive backlash from Labour MPs, the government appears to have dropped any plans to freeze the key disability benefit. Instead, it will rise with inflation next year.
In the Commons, Ms Kendall also dismissed controversial Tory-era proposals to replace PIP payments with vouchers. She also said PIP will not be means-tested because disabled people “disabled people deserve extra support”.
Work Capability Assessments to be scrapped
The DWP Secretary announced plans to abolish the controversial Work Capability Assessment for Universal Credit by 2028-2029.
This test determines whether or not someone is deemed eligible for benefit payments for those with ilnesses or disability, who have limited ability to find a job.
Instead, the green paper says the PIP application process will become “the single assessment” to recieve both support in PIP and any extra support related to health and disability through Universal Credit. It adds: “This places additional importance on the PIP assessment and making sure it remains fit for the future.”
Hike in Universal Credit – but cut to health top-up for new claimants
In a move that was welcomed by Labour MPs, Ms Kendall announced the Universal Credit standard allowance will increase. From April 2026 it will mean a single person over the age of 26 will see their benefit increase by around £7-per-week, the DWP said. Ms Kendal said this would equate to a £775 annual increase in cash terms by 2029.
But in a move that is causing deep concern, new claims for the health element of UC will be almost halved. They will receive £50-per-week from 2026/27 compared with the current rate of £97-per-week – a cut of £47-per-week.
For those already in receipt of the benefit, it will be frozen at £97-per-week. An “additional premium” will, however, protect the incomes of those who have no prospect of returning to work, the government insisted.
Under 22s could be stopped from claiming UC health top-up
A surprise detail in the DWP’s green paper is a proposal to stop young people under 22 from claiming the health element of Universal Credit. The DWP said it will consult on the change, with resources instead diverted to improve work and training opportunities for 18-21 year-olds.
The government’s green paper states: “Whilst for a small minority of young people work may never be a realistic goal, for most disabled young people and young people with a health condition, working at some point in the near future must be a credible ambition.”
More support to help people into work
One change that will be welcomed by Labour MPs is the government’s commitment to plough £1billion of savings back into the system. Ms Kendall said this will be used to help sick and disabled people back into the workforce.
The DWP said it is “one of the biggest packages of employment for support for sick and disabled people ever” and will include tailored support for claimants.
And there will also be a new “Unemployment Insurance” scheme for those who have made NI contributions, the DWP said. The green paper states: “This would mean people receive the income they need alongside the right employment support to get back into work. The welfare system was founded upon the contributory principle – the idea of ‘something-for-something.”
… including ‘Right to Try’ work scheme
Work and Pensions Secretary announced a new scheme that will enable people on health and disability benefits the “right to try” work.
This will essentially mean those on health and disability benefits will not face a reassessment or losing their payments if they take a chance on work.
The DWP said the change will require new legislation and “will ensure someone trying work or on a pathway towards employment will never lead to an immediate reassessment or award review”. This reform – unlike the major cuts to PIP – is likely to be welcomed by Labour MPs and disability charities.
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