DWP PIP benefit changes announced by government ahead of major shake up

Wales Online

19-06-2025

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The government has revealed plans to provide three months' worth of Personal Independent Payment (PIP) benefits to claimants whose subsequent applications are rejected, as outlined in the newly published welfare bill.
As part of proposed changes to PIP, the government has introduced additional safeguards for the most vulnerable benefit recipients, which will be enshrined in law. However, the proposed reforms have been met with criticism, being labelled as "cruel" and "unjust".
The Universal Credit and Personal Independence Payment Bill, set to be presented to Parliament, includes a 13-week financial safety net for claimants impacted by changes to the PIP daily living component, including those who risk losing Carers Allowance and the carer's element of Universal Credit.
According to the government, this temporary protection aims to provide individuals affected by the changes with time to adapt, access tailored employment support, and plan for their future following reassessment and the end of their entitlement.
Furthermore, the Department for Work and Pensions (DWP) has announced that over 200,000 individuals with severe, lifelong conditions will be exempt from future reassessments for Universal Credit entitlement. Those meeting the Severe Conditions Criteria, who are deemed unable to work, will not undergo reassessment and will receive the higher rate of UC health top-up, amounting to £97 per week, reports the Manchester Evening News.
However, as part of the Bill, the government is planning on cutting the health rate of new Universal Credit claims to £50 from April 2026.
It comes after Labour announced its major overhaul to the disability benefit in March, with proposed changes affecting the eligibility criteria of the benefit in a bid to cut down welfare spending. The changes are expected to take effect from November 2026, impacting both new and existing claimants.
It has not yet been confirmed how many will be affected by the cuts - however it is thought the changes to PIP will slash benefits for about 800,000 people.
In the coming weeks, legislation will also be drafted for a Right to Try Guarantee - meaning that trying work will not lead to a reassessment or award review of your benefit claim.
Work and Pensions Secretary Liz Kendall said: "Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.
"This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
"This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot - putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change."
National disability charity Sense has called the Bill "unjust" and "cruel" and has said it is extremely concerned about these proposed changes to disability benefits.
Research from the charity has revealed that half of disabled people with complex needs are already in debt due to benefit payments not going far enough.
Chief Executive James Watson-O'Neill said: "The government's proposed cuts to disability benefits will have devastating consequences for disabled people across the country - pushing thousands further into poverty, hardship, and isolation.
"Many disabled people already find themselves in debt because current benefits don't stretch far enough. Cutting support further at a time when the cost of living remains high is not only unjust - it is cruel.
"We urge MPs to listen to disabled people and reject this legislation. Our welfare system should support those who need it most - not abandon them.
"We're especially alarmed by plans to cut the Universal Credit uplift for those with the greatest barriers to work. Many of the disabled people and families we support have told us they're frightened - uncertain how they'll afford food, heating, or other basic needs without this vital support. This comes on top of worrying changes to PIP, which we've heard from many of our disabled staff and community helps them to stay in work."
James Taylor, Director of Strategy at disability equality charity Scope, called the bill 'catastrophic'. He said: "This bill will be catastrophic for disabled people.
"Cutting benefits will plunge hundreds of thousands into poverty. Over 800,000 will lose at least some financial support from PIP. It will have a devastating effect on disabled people's health, ability to live independently or work.
"A transition period will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end.
"Life costs more if you are disabled, whether or not you are working. The government needs listen to disabled people and change course."
Mark Rowland, Chief Executive at the Mental Health Foundation, added: "This bill is a disaster for disabled people, and we urge MPs to reject this legislation in its current form. It will take vital financial support away from hundreds of thousands of disabled people, many of whom have mental health problems. Previous austerity measures worsened people's living conditions, undermined their mental health and increased the risk of suicide and premature deaths – and that's likely to be the case here too.
"These plans will not help the UK government reduce the number of disabled people out of work. Personal Independence Payment is also granted to disabled people who are in work to help them meet the cost of their disability – and removing this support will make it harder for them to remain in the workforce. The Office for Budget Responsibility has also said there is no robust analysis showing this will encourage anyone to return to the workforce. Given that, our view is that these cuts are counterproductive and cruel.
"A more effective alternative for the government would be to move forward with its progressive policies that encourage people to return to work, such as the Right to Try scheme and improvements to support in job centres, and evaluate how these help people return to the workforce. Cutting support for disabled people without knowing that is a recipe for disaster."
At Prime Minister's Questions earlier today, Angela Rayner said she knows some people are "fearful" of changes to Personal Independence Payments and carer's allowance, but that Labour will support those who need it.
Liberal Democrats deputy leader Daisy Cooper said: "Liberal Democrat analysis of the Government's own data suggests that 1.3 million disabled people are at risk of losing some support. So can the Deputy Prime Minister honestly say, hand on heart, that this is a change that one million disabled people and their carers were promised?"
Ms Rayner responded: "Labour is the party of work, and also the party of fairness and social justice. We've announced a plan to get Britain working again, and we're clear on the principles and I want to be clear on that. Those who want to work should be able to work, and those who can never work should be protected...
"I know how some people are fearful of the changes, but this Labour Government put its values into place and will ensure that people are supported into work where they can and, where they can't, they are supported."
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