Tag: Universal Credit and Personal Independence Payment Bill

New details on the Government’s welfare reforms will be published today ahead of Second Reading of the Universal Credit and Personal Independence Payment Bill on Tuesday.

• Terms of reference for the first comprehensive review of the Personal Independence Payment (PIP) assessment in a decade to be published today.
• Comes alongside draft regulations for the new Right to Try Guarantee – enshrining protections in law for disabled people and people with health conditions who want to try work.
• Reforms to deliver greater certainty, independence, and dignity for disabled people, while ensuring the system is fair, sustainable, and fit for the future as part of the Plan for Change.

New details on the government’s welfare reforms will be published today (Monday 30 June 2025) ahead of Second Reading of the Universal Credit (UC) and PIP Bill on Tuesday.

The terms of reference for the first ever comprehensive review of the PIP assessment in over a decade will be published today. The review – led by Minister for Social Security and Disability Sir Stephen Timms – will ensure the system is fair, supportive and reflects the realities of modern life.

It will be co-produced with disabled people, the organisations that represent them, and MPs with the core objective of delivering better experiences and better outcomes for disabled people and people with health conditions.

The review aims to respond to the changing picture of population health over the last decade including the rising prevalence of long-term health conditions and disability in the working-age population.

Monthly PIP awards have more than doubled since the pandemic, rising from 13,000 to 34,000 – a rate of around 1,000 new claims per day, or the population of Leicester every year. Much of this increase is driven by mental health conditions with awards for anxiety and depression having tripled from 2,500 per month in 2019 to 8,200 in 2023.

To better help those with mental ill health, the government has recruited more than 6,700 extra mental health workers since July while rolling out more access to occupational health services and developing digital resources, so employers better support their staff’s mental wellbeing.

Many people have also reported poor experiences with the assessment process. The current system often fails to reflect the real-world impact of disability on daily life and is no longer fit for purpose – making reform urgent and essential.

Alongside the review, draft regulations for the new Right to Try Guarantee will be laid in Parliament. This will, for the first time, enshrine in law the right for people receiving health and disability benefits to try work without fear of reassessment. This includes disabled people and people with health conditions – such as those recovering from illness – who want to return to work now their health has improved.

This responds directly to concerns raised by disabled people and people with health conditions – 37% of whom say they want to work but are held back by fear of losing their benefits according to a DWP survey.

Fixing the broken welfare system this government inherited is central to breaking down barriers to opportunity and driving up living standards – delivering on the government’s Plan for Change.

The government says reforms will ensure disabled people have the support they need to live independently, with dignity, and will unlock opportunities to get into work without facing the prospect of losing the help they need.

Work and Pensions Secretary Liz Kendall said: “We must build a welfare system that provides security for those who cannot work and the right support for those who can. Too often, disabled people feel trapped – worried that if they try to work, they could lose the support they depend on.

“That is why we are taking action to remove those barriers, support disabled people to live with dignity and independence, and open routes into employment for those who want to pursue it.

“This is about delivering a fairer, more compassionate system as part of our Plan for Change which supports people to thrive, whatever their circumstances.”

The Government will also set out details today of the changes they intend to make to the Bill as part of the government’s welfare reforms.

The Government says it has has listened to MPs who support the principle of reform but are worried about the pace of change for those already supported by the social security system.

That’s why ministers have confirmed that as part of the Bill:

• All existing PIP recipients will remain on the current system and the proposed changes to eligibility as part of the bill will only apply to new claims from November 2026.
• 200,000 individuals in the Severe Conditions Criteria group – individuals with the most severe, lifelong conditions who are unlikely to recover – will not be called for a UC reassessment.
• All existing recipients of the UC health element and new customers with 12 months or less to live or who meet the Severe Conditions Criteria will see their standard allowance combined with their Limited Capability for Work Related Activity (LCWRA) rise at least in line with inflation every year from 2026/27 to 2029/30.

Nearly 4 million households will receive an income boost with the main rate of UC set to increase above inflation every year for the next four years – estimated to be worth £725 by 2029/30 for a single household aged 25 or over. This is around £250 higher than an inflation only increases.

The Bill will also rebalance UC rates by reducing the health element for new UC claims to the equivalent of £50 per week from April 2026, fixing a system which incentivises people to define themselves as incapable of work by paying health element recipients more than double the standard amount.

These reforms will be also underpinned by a significant investment in employment support. Funding will be brought forward to accelerate tailored employment, health and skills support to help disabled people and those with health conditions get into work as part of our Pathways to Work guarantee.

£300 million will be brought forward over the next three years, increasing total employment support by £2.2 billion over four years – upholding our commitment to spend £1 billion per year by the end of the decade.

This investment will accelerate the pace of new planned investment in employment support programmes, building on and learning from successes such as the Connect to Work programme, which already provides disabled people and people with health conditions with one-to-one support at the point when they feel ready to work.

And for people whose health challenges make it difficult to find or stay in work, our initiative in partnership with the NHS, WorkWell, will offer personalised support to help individuals manage their health while preparing for or returning to employment. This will build on progress already made to get 384,000 people into work since this government entered office and will come alongside fundamental reforms to patient support as part of the landmark 10 Year Health Plan.

Health professionals will be on hand to connect people with services like physiotherapy, mental health support, and more. They will also be supported by a dedicated employment adviser who understands their specific health needs and guide them every step of the way.

For too long, meaningful reform to our welfare system has been ducked and delayed – stunting productivity, slowing down growth and ultimately holding British people and our country back. The government is taking decisive action and the difficult decisions needed to restore trust and faith in the system, providing opportunities for those who can work, and security for those who cannot.

Further information

• The UC and PIP Bill is scheduled for Second Reading in the House of Commons Parliament on Tuesday 1 July 2025.
• The UC and PIP Bill legislates for:
• A new additional eligibility requirement for the daily living component of PIP so that from November 2026 new claimants must score a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component.
• Rebalancing of UC health and standard elementsincluding reducing the health top-up for new claims to £50 per week from April 2026.
• Ensure that all existing recipients of the UC health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – will receive the higher UC health payment after April 2026.
• Increasing the UC standard allowance above inflation for the next four years – worth an estimated £725 by 2029/30 for a single adult aged 25 or over.
• Exemptions from reassessment for those with the most severe, lifelong conditions.
• The Government has also confirmed that it will amend the Bill at Commons Committee stage to:
• Provide protection for existing PIP claimants—ensuring they remain on the current system and are unaffected by new eligibility rules.
• For all existing recipients of the UC health element – and any new claimant meeting the Severe Conditions Criteria and/or that has their claims considered under the Special Rules for End of Life (SREL) – the LCWRA rate for this group will now be uprated each year this Parliament to ensure their combined rate of the Universal Credit standard allowance and LCWRA is protected in real terms.
• The Bill currently includes a 13-week transitional period for the PIP changes, but this will be superseded by long-term protections for existing claimants.
• The Terms of reference for the PIP review, draft regulations for the Right to Try Guarantee, the draft amendment to the Bill which will enact the change to PIP, and analysis of poverty impacts will be published later today.
• The DWP work aspirations survey can be found here: Work aspirations and support needs of health and disability customers: Interim findings – GOV.UK; PDF, 1.2MB
• Latest data published last week shows almost one-in-four adults in England have common mental health conditions – and that adults with problem debt and those out of work are far more likely to experience mental health conditions.
• To better help those with mental ill health, the government is boosting access to support, with more than 6,700 extra mental health workers since July, marking a significant milestone towards its goal of 8,500 by the end of this Parliament.
• It has also started rolling out more access to occupational health services and developing digital resources so employers can better support their staff’s mental wellbeing as part of its drive to get people back to health and back to work.

More than 100 charities unite to say Scottish MPs must stand against social security cuts

More than 100 charities and civil society organisations have urged Scottish MPs to stand against social security cuts, uniting to tell Scottish MPs that it’s not too late to change course on controversial cuts.

They have written a joint letter to Scottish Secretary Ian Murray and copied it to all of Scotland’s MPs at Westminster.

They point to estimates that 400,000 people will be pushed into poverty if the changes to Personal Independence Payments and Universal Credit go ahead.

They warned that will mean destitution and misery for many sick and disabled people, as well as others in their households – including children and unpaid carers

Peter Kelly, chief executive of The Poverty Alliance said: “People are desperate for the UK Government to deliver a just and compassionate society – but these proposals will deliver the opposite.

“If enacted, these cuts will mean more disabled people living in poverty, relying on foodbanks, and pushed into destitution. That’s not the change people voted for at the last general election.”

In the letter they say: “This is a question of about the kind of society we want to be. Scotland is a country that believes in justice and compassion and people want our governments to make decisions which align with those values.

“We urge Ministers to drop these proposals. We urge Scottish MPs to vote against these cuts, sending a strong, positive message to disabled people and carers in Scotland that this Government will build a country free from poverty, not one that forces people into deeper poverty and destitution.”

MPs are expected to get their first chance to vote on the cuts in the Commons on 1 July. The Government is facing defeat after dozens of Labour MPs signalled their opposition.

Fiona Collie of Carers Scotland said: “We need a government that will reduce the poverty that unpaid carers face. If these cuts go ahead, even more of them will be pushed into crisis – leaving people struggling to afford food, heating, and other essentials.

“We estimate that around 150,000 unpaid carers across the UK stands to lose carers’ benefits as a direct result of these changes. That’s completely wrong – and any MP who votes to inflict that kind of deliberate harm on people in their constituency will have to justify themselves to electors.”

Tressa Burke of the Glasgow Disability Alliance said: “It is shameful to try to balance the nation’s books on the backs of disabled people. We have around 6,000 members who have already suffered the worst impacts of the cost-of-living crisis, and more than a decade of austerity and social security cuts.

“These plans will cause untold harm to many disabled people and push them into destitution. It will undermine their human rights and leave them facing even greater inequality and discrimination. If MPs in Scotland support these heartless cuts, it will be a bleak day indeed. They will absolutely not get people into work, and will act as a reason to fall out of work too, where PIP has been topping up low-paid work.’

In a survey last year, 71% of Glasgow Disability Alliance members said they didn’t have enough money to manage the cost of their needs, 68% couldn’t afford utilities, and 58% couldn’t manage the costs of food and essential groceries.

A substantial number of Labour backbenchers remain resolute and refuse to back the watered-down Bill.

RACHAEL Maskell MP said: “I have spent my life standing up for sick and disabled people, professionally and personally, and while progress is welcome, to introduce a system which leaves sick and disabled people in the future in poverty, those with fluctuating conditions, in uncertainty, including those with MS or a cancer relapse, no security, is unacceptable.

“Taking someone’s independence, does not make them better, more able to work or keep people in work. It creates poverty, dependency and places more pressure on social care and the NHS.

“Most chilling, according to Refuge, 29% of domestic violence survivors are disabled people and are far less likely to flee their home if they lose this crucial support.

“Work by the Women’s Budget Group demonstrates that this policy is highly gendered, impacting women significantly.

“Disabled people have not battled all their lives to then pull the ladder up behind them.

“I cannot support the ableist perception of sick and disabled people, where they have been given no agency in these proposals.

“Instead I draw on the substantial evidence, the voices of those impacted and my conscience which determines that I cannot cross by on the other side and have no choice but to vote against the UC & PIP Bill.”

More than 75,000 people have signed Richard Burgon MPs petition on Change: