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There have been big changes to government plans to overhaul health and disability benefits, after pressure from MPs, charities, and the public.
The most severe planned cuts to personal independence payments (PIP), which were expected to remove support from hundreds of thousands of people, are on the back burner while a review is carried out.
But there will still be big cuts to the health element of universal credit for new claimants. And the changes means that the government won’t be able to make the savings it had previously planned.
We’ll explain the latest developments and what they mean for you.
What’s on this page?
Following a series of concessions, the government’s welfare reform bill has been substantially changed. The key updates are:
1. No changes to PIP for now: In a last-minute change, the government has dropped its plan to tighten PIP eligibility rules (this was known as the ‘four-point rule’). This applies to both new and existing claimants.
2. The Timms Review will decide the future of PIP: No changes will be made to PIP until a wide-ranging review is completed, led by the minister for social security and disability, Stephen Timms. This review is not expected to report its findings until autumn 2026 at the earliest.
3. Universal credit (UC) changes still going ahead: While existing claimants are protected, new applicants for the health element of UC from April 2026 will receive a reduced rate, almost halving the payment from around £97 to £50 per week.
4. Protection for existing universal credit claimants: In a key concession, people already receiving the health element of UC will be protected from both the cut and a previously planned freeze. Their benefit will now continue to rise with inflation.
5. Work capability assessment (WCA) is still set to be scrapped: Plans to abolish the WCA from 2028 and use the PIP assessment as the single gateway for the health element of UC remain, though this will require separate legislation.
PIP is a benefit paid in England and Wales to people under state pension age who have a long-term health condition or disability that affects their ability to carry out daily tasks or get around. It is not means-tested, and the amount you get depends on how much help you need.
It has two parts:
Current weekly rates are:
For most adults, PIP has replaced disability living allowance (DLA).
If you’re already receiving PIP when you reach state pension age, your claim can continue for as long as you meet the eligibility criteria.
You may also be able to make a new claim for PIP after reaching state pension age if you were eligible for it in the year before you reached that age.
If you don’t meet these conditions and need help due to a disability after reaching state pension age, you should apply for attendance allowance instead.
The government’s U-turn on PIP means that the immediate threat that hundreds of thousands of existing claimants would lose their entitlement has been removed.
For those claiming universal credit, the impact depends on your circumstances:
The change of plan on PIP will affect carers too. Carer’s allowance is only paid if certain conditions are met, including that the person being cared for receives a benefit based on health or disability.
So tightening who is eligible for PIP would also reduce the number of people who can get carer’s allowance. The immediate threat to this benefit for many has also been lifted.
The longer-term plan to scrap the work capability assessment (WCA) in 2028 is still in place. This proposal means that eligibility for the health element of universal credit would be decided by a person’s PIP award, a plan that remains controversial.
The Institute for Fiscal Studies says that when it comes to this autumn’s Budget, predicted spending on social security will be higher than the chancellor had been planning back in March, which will increase pressure to raise taxes.
Helen Miller, IFS deputy director, said: “Since departmental spending plans are now effectively locked in, and the government has already had to row back on planned cuts to pensioner benefits and working-age benefits, tax rises would look increasingly likely.
“This will doubtless intensify the speculation over the summer about which taxes may rise and by how much.”The Resolution Foundation, a think-tank which focuses on improving living standards for people on low-to-middle incomes, says that the system will create a 'two-tier' system between people already claiming universal credit and new claimants.
It says that while the changes are welcome, the cost of them will make it even more difficult for the chancellor to meet her self-imposed fiscal rules in the autumn Budget.
Chief executive Ruth Curtice said: “The government originally hoped to save £4.8 billion from its welfare reforms in the crucial year of 2029-30.
“The upshot of all the concessions in the Welfare Bill is it will now not make any net savings in that year.
“The changes to universal credit are nonetheless important for recipients and their work incentives, and are expected to save money in the longer term.”
The welfare changes apply to England and Wales, but they have knock-on effects for the devolved nations too. Universal credit follows the same guidelines around the UK (with the minor difference that you can choose to be paid twice a month in Scotland).
Scotland has its own adult disability payment (ADP) instead of PIP, but its funding from the UK government is linked to spending on PIP. With the planned cuts to PIP now scrapped, the immediate pressure on Scotland’s budget has been eased.
However, any future changes resulting from the Timms Review could still affect funding.
In Northern Ireland, benefits policy is devolved but largely mirrors the system in England and Wales and is funded by the UK government.
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