Last Updated on 21/03/2025 by Crip Life
The UK government has announced a radical overhaul of the welfare system, marking the most significant reforms in decades. This ambitious initiative, spearheaded by Work and Pensions Secretary Liz Kendall, aims to tackle economic inactivity and encourage more people – particularly those with long-term health conditions or disabilities – to enter or return to the workforce.
The “Get Britain Working” White Paper outlines a multi-billion-pound investment in employment support while simplifying benefits to create a system that encourages work rather than long-term dependence on state aid.
On Tuesday 18th March, Work and Pensions Secretary Liz Kendall introduced a green paper, which included significant welfare reform proposals aimed at reducing benefit expenditures by £5 billion annually by the end of the decade.
Why welfare reform is needed
The UK has been grappling with rising levels of economic inactivity, especially since the Covid-19 pandemic. More than 2.8 million people are currently classified as economically inactive due to long-term illness, placing the UK among the highest in the G7 for such figures.
Furthermore, the number of individuals claiming Personal Independence Payments (PIP) has surged, with new claims rising from 15,300 per month before the pandemic to 35,100 per month today.
If left unchecked, the government predicts that the number of PIP claimants could more than double, reaching 4.3 million in five years. This would drive the annual cost of health and disability benefits to £70 billion – more than one-third of the NHS budget and triple the amount spent on policing. Such escalating costs have made welfare reform not just a social issue but also an economic necessity.
Key changes in the welfare system:
- Scrapping the Work Capability Assessment (WCA)
- Changes to Personal Independence Payment (PIP)
- Updating the Access to Work Scheme
- Reforming unemployment benefits
- Introducing the “Right to Try” guarantee
- £1 billion investment in tailored employment support
- Ensuring dignity for those unable to work
Scrapping the Work Capability Assessment (WCA)
The Work Capability Assessment (WCA), which determines if a claimant is fit for work, will be abolished. Critics have long argued it is complex, outdated, and discourages employment due to fear of losing benefits.
Instead, financial support for health conditions (including PIP, ESA, or UC health) will be assessed through a single evaluation based on the PIP assessment. This new approach focuses on how disabilities impact daily living rather than work capability.
Changes to Personal Independence Payment (PIP)
From November 2026, the UK government is revising the PIP assessment process:
- More face-to-face assessments to improve accuracy, while keeping alternative methods available.
- Tighter eligibility criteria, requiring a minimum of four points on one daily living activity in addition to existing criteria.
- Support for affected claimants, ensuring those losing eligibility still have their health and care needs met.
- Mandatory reassessments for incapacity benefits will restart, except for those permanently unable to work or under end-of-life care rules. These were paused since 2021 but will resume to help identify individuals who may be able to work with support.
Updating the Access to Work Scheme
The Access to Work scheme is being modernised for the first time since 1994 to better support disabled workers. The reform aims to:
- Expand access to workplace adjustments, including assistive technology.
- Enhance accessibility and efficiency to remove employment barriers.
- Promote an inclusive workforce by ensuring disabled employees receive the necessary support.
Reforming unemployment benefits
The government plans to merge contributory ESA and JSA into a single, non-means-tested, time-limited benefit. This will:
- Ensure those who have contributed to the system receive support while job-seeking.
- Streamline the benefits process to help people transition into suitable employment more effectively.
Introducing the “Right to Try” guarantee
A new “Right to Try” initiative will allow individuals to test employment opportunities without immediate loss of benefits. This aims to encourage workforce participation by providing a safety net for those who struggle to sustain employment.
£1 billion investment in tailored employment support
A £1 billion employment package will provide customised support for disabled individuals and those with long-term health conditions. Key components include:
- Skills training and workplace accommodations to remove employment barriers.
- Support Conversations, offering earlier opportunities to discuss job aspirations and available assistance.
- Youth Guarantee Initiative, delaying UC health element access until age 22. Savings will be reinvested into work support and training programmes for young job seekers. This initiative is expected to be rolled out before Autumn 2026.
Ensuring dignity for those unable to work
The government is committed to safeguarding financial stability for disabled individuals who cannot work:
- Existing UC health claimants will retain their increased standard allowance and remain unaffected by future benefit reductions.
- A new financial premium will be introduced for individuals with severe, life-long conditions who will never be able to work.
- Eliminating repeated reassessments for those with permanent disabilities to reduce stress and administrative burden.
- Stronger safeguarding measures will be developed in collaboration with stakeholders to ensure fair and dignified welfare experiences.
Disability benefits reform consultation
The UK government will launch a **disability benefits consultation in Spring 2025**, focusing on PIP eligibility, potential integration with Universal Credit, and the Youth Guarantee Initiative.
It aims to refine financial support, simplify assessments, and redirect savings into employment schemes for young people. Feedback from stakeholders will shape the final policies.
Disability organisations raise concerns on welfare reforms
Despite the government’s assurances, the proposed reforms have sparked debate. Critics argue that while the focus on employment support is positive, the reforms could also lead to cuts in financial assistance for those who genuinely cannot work. Disability rights advocates fear that removing the WCA might lead to some claimants losing out on support they depend on.
James Taylor, Executive Director of Strategy at disability equality charity Scope, said:
“The biggest cuts to disability benefits on record should shame the government to its core. They are choosing to penalise some of the poorest people in our society. Almost half of families in poverty include someone who is disabled.
“Life costs more if you are disabled. Ripping £5bn out of the system by 2030 will be a catastrophe for disabled peoples’ living standards and independence.
“The government will be picking up the pieces in other parts of the system with pressure on an already overwhelmed NHS and social care, as more disabled people are pushed into poverty.
“We expect the consultation will see an overwhelming response. We urge the government to listen to disabled people and think again.”
Jon Sparkes OBE, Chief Executive at learning disability charity Mencap said:
“While it is welcome that the Government is trying to break down barriers to work and improve employment support, today’s unprecedented proposals to cut disability benefits risk pushing thousands of people with a learning disability into poverty.
“Nearly, 200,000 people with a learning disability rely on PIP to support them with the unavoidable price of being disabled. These aren’t optional costs, and they won’t simply disappear because of cuts to PIP.
“A learning disability is usually identified on or around birth and lasts someone’s whole life. With the right support, people can live brilliant independent lives, but a learning disability is not a condition that can be ‘cured’ and the number of people with a learning disability claiming benefits has not increased significantly in recent years. If this hasn’t changed, why should people be penalised?
“This is coming at a time when anxieties are already high, bills are rising, and social care budget are stretched.
“Before these changes come into force in Autumn 2026, the Government still has time to listen to people with a learning disability to understand the very serious impact these proposals would have on their lives.”
Additionally, some economists warn that forcing people into work without addressing broader issues – such as the availability of flexible jobs and workplace accommodations – could result in increased stress and mental health problems.
The government insists, however, that these concerns are being taken into account and that the reforms are designed to support rather than penalise those in need.
Petitions to stop proposed welfare changes
Since the announcement of these proposed welfare changes, a petition has been set up by Scope to try and stop them. In almost 72 hours, it has already gained 45,000 signatures.
There is also an additional petition set up by an anonymous group, which has reached 5,900 signatures so far.
What do you think of these welfare changes? Are you in favour of the government supporting more disabled people into work or do you have concerns about losing your benefits? Let us know in the comments box, on social media or contact us to share your personal story.
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