Fewer people to receive PIP under government welfare reforms

Work and Pensions Secretary Liz Kendall has proposed a raft of reforms to the health and disability benefits system and employment support, which include changes to Personal Independence Payment (PIP), Work Capability Assessment (WCA), and Universal Credit (UC).

According to the Department for Work and Pensions (DWP), the welfare reforms will help sick and disabled people who can and have the potential to work into jobs, open up employment opportunities, boost economic growth, and tackle the “spiralling benefits bill”.

The proposed reforms apply in England and the UK Government’s areas of responsibility in Wales and Scotland.

One of the headline announcements from the welfare reforms are the changes to PIP, which will see fewer people receiving the health benefit.

The government says that the number of people receiving PIP has risen rapidly and is becoming “unsustainable”.

As part of a major reform, the government is changing the PIP eligibility requirement to a minimum score of four on at least one of the daily living activities to receive the daily living element of the benefit, in addition to the existing eligibility criteria.

DWP has stated that it will work with DHSC to ensure that existing people who claim PIP who may no longer be entitled to the benefit following an award review under new eligibility rules have their health and eligible care needs met.

The WCA will also be scrapped. DWP says that this “dysfunctional” process “drives people into dependency”.

The Work and Pensions Secretary added that face-to-face assessments for PIP and the WCA will be increased to “improve the quality of assessment decision while ensuring we continue to meet the needs of those with who may require a different method of assessment”.

In the long term, the DWP will set out broader reforms to the PIP assessment process and intends to first carry out a review involving experts and stakeholders to adapt and improve it.

Under the new benefits system, any extra financial support for health conditions (including PIP, ESA, or UC health) will be assessed via a new single assessment which will be based on the PIP assessment – considering on the impact of disability on daily living, not on capacity to work.

Despite these major changes to PIP and WCA, Liz Kendall said that the government will end reassessments for disabled people who will never be able to work and people with lifelong conditions to ensure they can live with dignity and security.

Work and Pensions Secretary Liz Kendall said: “Our social security system must be there for all of us when we need it, now and into the future. That means helping people who can work to do so, protecting those most in need, and delivering respect and dignity for all.

“Millions of people have been locked out of work, and we can do better for them. Disabled people and those with health conditions who can work deserve the same choices and chances as everyone else.

“That’s why we’re introducing the most far-reaching reforms in a generation, with £1 billion a year being invested in tailored support that can be adapted to meet their changing circumstances – including their changing health – while also scrapping the failed Work Capability Assessment.

“This will mean fairness for disabled people and those with long term health conditions, but also for the taxpayers who fund it as these measures bring down the benefits bill.

“At the same time, we will ensure that our welfare system protects people. There will always be some people who cannot work because of their disability or health condition. Protecting people in need is a principle we will never compromise on.”

The government is investing £1 billion into improved employment support, which includes new tailored support conversations for people on health and disability benefits to “break down barriers and unlock work”.

Moreover, the government is reintroducing reassessments for people on incapacity benefits who have the capability to work to ensure they have the right support and are not indefinitely written off.

The government also proposes rebalancing payment levels in UC to improve the Standard Allowance, raising it above inflation by 2029/30, adding £775 annually in cash terms. DWP is further consulting on delaying access to the health element of UC until someone is aged 22 and reinvesting savings into work support and training opportunities through the Youth Guarantee.

Beyond this, those currently in receipt of UC health will not be affected by plans to reduce UC health in future.

For people who receive the new rate of UC health in the future system, the government is proposing a new premium for individuals with severe, life-long health conditions who will never be able to work. The details, eligibility criteria, and rate of this premium will be set out in the future.

Liz added that the government is legislating to protect those on health and disability benefits from reassessment or losing their payments if they take a chance on work. A new ‘Right to Try Guarantee’ will ensure someone trying work or on a pathway towards employment will never lead to an immediate reassessment or award review, under the reforms.

The DWP is also consulting on improvements to the Access to Work scheme to help people start stay in work with reasonable adjustments including aids, appliances, and assistive technology.

The government is running an open consultation on all of its proposed reforms. It is aimed at disabled people and people with health conditions and disability organisations in England, Wales, and Scotland. This consultation closes at 11.59pm on 30 June 2025. Respond online here.