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The UK government has proposed changes to disability benefits. Our Money Matters team is here to break down what it all means for you.
On 19 March, the UK government published proposals to change disability benefits across the UK. They published a Green Paper, which is a document that suggests ideas and asks for public feedback before any decisions are made.
There will be a 12-week consultation on some of the proposals, therefore nothing is changing just yet.
However, some of the key proposals will be brought forward without consultation as part of a White Paper this autumn. White Papers are policy documents produced by the government that sets out their proposals for future laws.
What are the government’s key proposals?
The government has proposed making several changes to disability benefits. These include:
Changing the Personal Independence Payment (PIP) assessment criteria
People will still need to score at least 8 points in total in the ‘daily living’ activities to qualify for the daily living section of a PIP assessment.
However, under the new plans, 4 out of these 8 points will need to come from a single daily living activity. This could mean that people who need support to wash and dress themselves, use aids to prepare food or to go to the bathroom could find it harder to qualify for PIP.
The criteria for the mobility component will not be changed. This change will happen next year. It would apply to all new claimants and existing claimants if reassessed.
This PIP assessment criteria change won’t be consulted on.
Scrapping the Work Capability Assessment (WCA)
The WCA currently decides whether people get additional disability-related support on Universal Credit (UC). It also decides if they can get Employment and Support Allowance (ESA) The government will scrap the WCA in 2028.
UC claimants who also get the daily living component of PIP would get extra disability support on UC under the new approach. But the tighter criteria for PIP mean it’s possible some people would get less support on UC.
This change won’t be consulted on.
Merging Employment and Support Allowance (ESA) and Jobseeker’s Allowance (JSA)
The government is proposing to merge ESA with JSA to make a new benefit called ‘unemployment insurance.’
Disabled people who are out of work could get this new benefit without having to go through an assessment if they’ve paid enough National Insurance over the past two to three years. It would be paid at the same rate as ESA and would be time limited.
This change is part of a consultation, so the government is asking for feedback on how it should work.
Changing the rate of Universal Credit (UC) and additional allowances
From April 2026, the standard allowance of UC will increase by £7 a week. Disabled people who make a new claim to UC will only receive £50 additional disability-related support a week, on top of the standard allowance of this benefit. That’s £47 a week less than under the previous system.
Current claimants will see their additional disability allowance frozen at £97 a week until 2029.
The government is also proposing that people with the most severe, life-long conditions, who receive additional disability-related support on UC, will receive an additional premium and will never be reassessed.
These changes also won’t be consulted on.
Changing how people’s work requirements on UC and ESA are set
Right now, decisions about whether someone on Universal Credit (UC) or Employment and Support Allowance (ESA) has to look for work are based on the Work Capability Assessment (WCA). Most people with Multiple Sclerosis don’t have to look for work under this system.
But under the government’s new plans, the WCA would be removed, so they’ll need to create a new way to decide what work requirements people have.
Other areas of impact:
- Loss of income for carers who are getting Carers Allowance
- Fewer people being entitled to PIP are exempt from the Benefit Cap
- Fewer people are entitled to an extra bedroom for an overnight carer
If you’re thinking of applying for PIP, we recommend it. You’re more likely to get PIP if you apply before the rules change!
Please find below some useful videos from the Department for Work and Pensions (DWP) and further links.
- PIP video 1 – An overview
- PIP video 2 – How you can claim PIP
- PIP video 2 – How you can claim PIP
- PIP video 4 – How PIP is awarded
- Personal Independence Payment – Citizens Advice
- How do you prepare for your Personal Independence Payment Pip form
Help and support
If you’d like to chat about applying for PIP or your finances, our Money Matters team are here to help. You can email the team at moneymatters@lfha.co.uk or call on 0113 386 1000.
