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Government Announces Welfare Benefit Reforms

Posted in General News on Wednesday, March 19th, 2025

The government has recently proposed changes to welfare benefits, and we have outlined some of the key information in this article.  

Personal Independence Payment 

The government has proposed changes to the eligibility criteria of the daily living component of Personal Independence Payment (PIP). Now, in addition to the existing qualifying criteria for the daily living component of PIP, claimants must also have a score of a least 4 points in one or more of the daily living activities to qualify for this element of the benefit  

These changes will apply to new and existing claimants. For those who are currently claiming the changes will come into effect at their next award review. For those who lose their entitlement to the daily living component the Green Paper mentions the possibility of a transitional support package should be given. The government is also preparing to review the PIP assessment process in the future. However, the criteria for the mobility component of the benefit remains unchanged at this time. 

Work Capability Allowance 

The Government is looking to get rid of the Work Capability Allowance and introduce a new assessment covering both Employment Support Allowance and Universal Credit. This will be based on the PIP assessment in the sense that it will assess the impact that the claimant's disability has on their daily living rather than their ability to work. The ‘Right to Try Guarantee’ will be introduced meaning that someone who is trying work or is on a pathway to employment will not automatically be scheduled for an assessment or award review because of this.  

Through this Green Paper the government pledges to begin reassessing people for incapacity benefits again unless they will never work or are on ‘special rules’ for end-of-life care. It is hoped this will encourage more people to work. 

Universal Credit 

The government plans to increase the Standard Allowance for UC above inflation by 2029/30, adding £775 in cash terms annually. It is hoped this will stop people having to choose between getting employment or adequate financial support.  

The government is also consulting on delaying access to the health element of Universal Credit until someone is aged 22 and reinvesting savings into work support and training opportunities through the ‘Youth Guarantee’. 

Further information on these reforms can be found on the GOV.UK website.  

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