DWP benefits crackdown: What changes could be announced to PIP and Universal Credit?

Liz Kendall, the Work and Pensions Secretary will outline the government's plans to reform the health benefits system this afternoon.

The changes could make it harder to qualify for PIP, with around £5bn of the proposed cuts targeting the disability benefit currently claimed by 3.6 million people.

Claimant numbers for PIP and Universal Credit have increased significantly since the pandemic. Total spending on health and disability benefits is forecast to rise from £64.7bn in 2023-24 to £100.7bn in 2029-30.

Ministers had reportedly considered freezing PIP payments to prevent them rising with inflation in 2026. However, this idea has been taken off the table following pressure from backbench MPs.

The government is expected to focus instead on tightening eligibility criteria for those with less severe conditions. Some current recipients will inevitably lose out under the planned overhaul.

The reforms are part of Labour's efforts to cut the growing welfare bill while providing more support for those seeking employment. The government has promised to protect the most vulnerable claimants under the new system.

Those clearly unable to work will not face further reassessments of their condition. These individuals will keep the entirety of their payments.

People with "permanent or degenerative conditions" may never have to be reassessed, according to reports in The Times. However, eligibility criteria will be tightened for those with less severe conditions.

The reforms aim to balance support for those who cannot work with encouraging others into employment. The government has defended the reforms as necessary to put the welfare system "back on a more sustainable path".

Around one million people could lose access to health and disability benefits under welfare reforms. However Downing Street stated there is "both a moral and an economic case for fixing our broken social security system".

It's expected that unemployed Universal Credit recipients actively seeking work will see their benefit levels rise, albeit modestly.

Kendall said the government would not "shy away from the decisions that we believe are right to give opportunities to people who can work".

She added the changes would ensure "trust and fairness in the social security system".

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Disability advocates have expressed serious concerns about the impact of the reforms on vulnerable claimants.

James Taylor, Executive Director of strategy at disability charity Scope, warned: "Ripping PIP away will be catastrophic for disabled people. PIP exists because life costs more if you are disabled. Those costs won't disappear if the government squeezes eligibility.

"Many disabled people use PIP to get to and from work and to pay for essential equipment like mobility aids. Making it harder to get benefits will just push even more disabled people into poverty, not into jobs."

The reforms have faced opposition from within Labour ranks over concerns about the impact on vulnerable claimants.

Labour peer Baroness Shami Chakrabarti told BBC Newsnight it was "wrong in principle" to cut benefits from people suffering from disabilities and illnesses.

The prime minister's policy team met Labour MPs last week to discuss savings in the range of £5bn to £6bn. Kendall acknowledged that speculation ahead of the announcement had caused "anxiety" for claimants.

She insisted the planned changes would be fair while maintaining "security for those who can't" work.

The government is expected to introduce a "right to try" policy allowing disabled benefit claimants to retain their benefits if they attempt employment that doesn't become long-term.

The DWP has announced 1,000 work coaches will be deployed to jobcentres across the UK to help sick and disabled people find employment. Some claimants will face more frequent reassessments under the reforms.

There are also reports that ministers have considered changes to the health-related element of Universal Credit for those with long-term sickness.

The Joseph Rowntree Foundation has warned that the proposed cuts would be "the biggest cut to disability benefits" since the Office for Budget Responsibility was created in 2010.