UK Government Confirms Scaled-Back Disability Benefit Reforms, Spares Existing Claimants
UK Government Confirms Scaled-Back Disability Benefit Reforms, Spares Existing Claimants
The UK government has officially confirmed its revised plan for health and disability benefit reforms, significantly scaling back initial proposals following pressure from Labour MPs. Work and Pensions Secretary Liz Kendall announced that changes to Personal Independence Payment (PIP) will now only affect new claimants, providing a reprieve for current recipients.
In a further concession, Kendall confirmed that payments to existing recipients of the health-related element of Universal Credit (formerly incapacity benefit) will no longer be frozen. Despite these adjustments, government analysis projects that an additional 150,000 people could still fall into ‘relative poverty’ as a direct consequence of the remaining welfare reforms.
The announcement comes as the number of working-age adults claiming disability benefits continues to surge, reaching approximately 4 million by March 2025 – up from three million in 2019. This increase is largely attributed to a rise in claims citing mental health conditions, which accounted for 44% of all claims in 2024. While the exact causes of this upward trend remain under review, factors such as the rising state pension age and improved public awareness of benefit entitlements are considered contributors.
The government’s initial reform package aimed to save £5.5 billion annually by 2030, but the confirmed concessions reduce the expected savings to £2.5 billion. A broader review into PIP, led by Work and Pensions Minister Stephen Timms, is slated to report by next Autumn.
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