09-03-2025
What DWP changes to PIP and Universal Credit mean for you
THE UK Government is reportedly set to introduce a sweeping range of social security reforms in a bid to slash £6 billion off the benefits bill.
The Department for Work and Pensions has drawn up a raft of measures to force people into work – even if they have extreme disabilities, ITV News reported.
The headline measures are changes to Personal Independence Payments (PIP). The Government wants to make it harder for people to claim this benefit, which is not linked to work.
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PIP helps with extra living costs for people with disabilities and comes in two parts: a daily living part, for people who struggle with everyday tasks and a mobility part, for people who have difficulty getting around.
People in Scotland currently claiming PIP will be transferred to the Scottish Government's Adult Disability Payment this spring.
PIP payments will be cut in real terms next year by freezing them so they do not rise in line with inflation. In total, the Government expects that changes to PIP will save around £5bn.
There are also changes to Universal Credit, which is paid both to people in work and out of work.
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The basic rate of Universal Credit (between £311.68 and £617.60 a month) will be increased – but only for those searching for work or in work. People who have been judged unfit for work through a Work Capability Assessment will have their payments cut.
There are a number of factors motivating the Government to cut benefits.
(Image: Wire)
Their stated priority is to cut the number of people who claim benefits and are not required to work. According to the latest figures from the DWP this is 42% of Universal Credit claimants, a rising proportion, though 37% of people who claim the benefit are in work.
Secondly, the Government will put around £1bn of the money saved through cuts into employment services for people claiming benefits to find work, ITV News reports.
Finally, there is mounting expectation that ministers across the Government will be required to find cuts in their departments to fund increased defence spending in light of the war in Ukraine.
