Sharon Cyrus
The upcoming Second Reading of a significant government bill aimed at reforming Universal Credit (UC) and Personal Independence Payment (PIP) is scheduled for Tuesday.
With growing dissent among the government’s backbenchers, several adjustments have been introduced to appease the critics ahead of the crucial vote.
While these changes are designed to address internal tensions within the party, it remains uncertain whether they will secure sufficient backing for a majority in the House of Commons.
Work and Pensions Secretary Liz Kendall has expressed that the proposed reforms are a step toward creating a “fairer, more compassionate system.”
Government’s Position on the Reforms
Secretary Kendall highlighted that disabled individuals often feel trapped, fearing that any attempt to work may result in losing the support they depend on.
The government is thus introducing these changes to eliminate these barriers and provide accessible employment opportunities for those wishing to pursue work.
Key Reforms to Universal Credit and PIP
The government is aiming to implement several key measures to adjust the pace and scope of the Universal Credit and Personal Independence Payment overhaul. Below is a breakdown of the eight primary measures proposed by ministers:
Comprehensive PIP Assessment Review
In response to mounting concerns, the government has approved the first major review of the PIP assessment process in over a decade.
The review, led by Sir Stephen Timms, Minister for Social Security and Disability, will involve collaboration with disabled individuals and relevant charities.
The review’s goal is to better align the system with modern-day realities while addressing the notable rise in mental health claims, which have tripled recently.
Right to Try Guarantee for Employment
To address concerns about potential job loss, the government has introduced a Right to Try Guarantee. This new guarantee will allow people receiving health and disability benefits to explore employment opportunities “without the fear of reassessment,” according to the Department for Work and Pensions (DWP).
Changes to PIP Eligibility
The government has proposed changes to PIP eligibility regulations that will primarily impact new claimants from November 2026. The current claimants will remain under the existing system.
However, future claimants will be required to score a minimum of 4 points on a daily living activity to qualify for PIP benefits. This adjustment delays the most controversial part of the bill, safeguarding those who are already receiving support.
Exempting Individuals with Lifelong Conditions from Evaluations
Approximately 200,000 people with severe and irreversible conditions, often referred to as those with Severe Conditions, will be exempted from Universal Credit evaluations.
This decision follows criticism for imposing unnecessary bureaucratic hurdles on vulnerable groups.
Increases in UC Payments for Households
To address concerns about fairness, ministers have announced that nearly 4 million households will see above-inflation increases in Universal Credit over the next four years.
A single person aged 25+ could see their support increase by £725 by 2029/30, which is expected to be £250 higher than if the payments had only tracked inflation.
Protection for Existing Health Claimants
Those already receiving the Universal Credit health element, along with new claimants who meet the Severe Conditions Criteria or the End-of-Life rules, will have their combined payment rate protected. Additionally, these payments will be increased annually with inflation until 2029/30.
Rebalancing the Universal Credit System for New Claimants
The government intends to rebalance the Universal Credit system by reducing the health element to £50 per week for new claimants from April 2026.
Ministers argue that this adjustment is necessary to correct a system that incentivizes people to categorize themselves as incapable of work by paying health element recipients more than double the standard amount.
£2.2 Billion Employment Support Package
To aid individuals in transitioning back into the workforce, the government has fast-tracked a £2.2 billion employment support initiative.
Over the next three years, £300 million will be allocated, with the full £2.2 billion earmarked for job support and skills assistance by 2029.
Additionally, a new WorkWell programme, in collaboration with the NHS, will offer tailored health and employment advice.
The government’s proposed reforms to Universal Credit and PIP represent a significant shift in how support will be provided to those facing health and disability challenges.
While changes like the Right to Try Guarantee and PIP eligibility alterations are designed to create more opportunities for employment and fairness, the success of the reforms will depend on securing the necessary support in the House of Commons.
FAQs
Will the Right to Try Guarantee apply to all benefit recipients?
No, it will specifically apply to individuals on health and disability benefits who are interested in trying out employment without the fear of reassessment.
How will the Universal Credit system be rebalanced for new claimants?
From April 2026, the health element of Universal Credit will be reduced to £50 per week for new claimants, aiming to create a fairer system.
When will the changes to PIP eligibility take effect?
The new eligibility criteria for PIP will only affect new claimants from November 2026, with current claimants protected under the existing system.