In a significant overhaul of the welfare system, UK Chancellor Rachel Reeves has announced sweeping changes to the Personal Independence Payment (PIP) and Universal Credit, aiming to save the government £5 billion by 2029-30. The announcement, made during the Spring Statement on March 26, 2025, has sparked widespread concern among disability advocates and claimants who fear losing vital support.
Sam Brown, a 43-year-old woman from Pontypridd, is one of over 3.6 million people in the UK who rely on PIP, a benefit designed to assist those with disabilities. With severe sight loss, Brown expressed her distress over the proposed changes, stating, "The more I'm worrying 'is this going to happen to me?' the more it's having a knock-on effect at night with my sleep because my brain just won't switch off." She relies on PIP for essential support, including help with cleaning her home and participating in social activities.
The government claims that the reforms will help get more people into work while saving money. Chancellor Reeves emphasized that it is unacceptable for individuals to misuse PIP, stating, "It can't be right that some people were improperly using PIPs." However, the proposed changes are set to restrict eligibility, potentially leaving many vulnerable individuals without necessary financial support.
According to government analysis, more than 3 million families will face financial losses due to welfare cuts by 2030, averaging £1,720 per year. In Wales alone, over 14% of working-age individuals, approximately 275,000 people, claim PIP. Additionally, the health element of Universal Credit, claimed by about 150,000 in Wales, will also be affected by these sweeping changes.
Dr. Chloe Morgan, a 30-year-old advocate for disability rights, participated in a protest against the cuts in Swansea. Morgan, who has osteogenesis imperfecta and uses a wheelchair, voiced her concerns, saying, "There must be better ways of making cuts. Cutting PIP is just not right. We cannot keep punishing disabled people. It would cut back on my independence." Her comments reflect a broader sentiment among disability advocates who argue that the changes will exacerbate poverty among disabled individuals.
The Department for Work and Pensions (DWP) has projected that by 2029-30, approximately 3.2 million families will be financially impacted by the proposed changes, with an average annual loss of £1,720 once inflation is accounted for. In contrast, the DWP also indicated that 3.8 million families would benefit financially, with an average gain of £420 per year after factoring in inflation. However, critics argue that these statistics fail to account for the real-life implications of losing vital support.
Reeves defended the reforms, stating that the government inherited a "broken system" and that urgent changes were necessary to prevent an entire generation from being "written off." She noted that more than 1,000 people qualify for PIP every day, and one in eight young people are not engaged in employment, education, or training.
Among the changes set to take effect, from November 2026, applicants for PIP will need to score a minimum of four points in at least one activity to qualify for the daily living component. This marks a shift from the current requirement of scoring between eight and 11 points to receive the standard rate. Critics argue that this change will make it significantly harder for individuals with disabilities to qualify for necessary support, as they will need to demonstrate greater difficulty in completing daily tasks.
The DWP has also stated that individuals with permanent or worsening health conditions will not need to undergo reassessment, while others may face more frequent evaluations. Most PIP assessments will now be conducted in person, with the DWP assuring that reasonable adjustments will be made for those unable to attend.
In addition to changes to PIP, the Universal Credit health element will see a 50% cut and be frozen for new claimants. The standard allowance for Universal Credit is scheduled to rise from £92 per week in 2025-26 to £106 per week by 2029-30. However, existing claimants of the incapacity payment will see their current rate of £416.19 frozen until 2030, while new claims will receive only £208.10 per month.
Business owners are also feeling the pinch from these changes. Martin Astley, founder of Bike Park Wales, expressed his concern about rising costs due to tax and wage increases. He noted that while the increase in the National Living Wage to £12.21 per hour is beneficial for workers, it poses a significant challenge for employers like him, who are already struggling with low consumer confidence.
As the government pushes forward with these reforms, the implications for vulnerable individuals and families remain unclear. Many are left wondering how they will cope with potential reductions in their income, especially as the cost of living continues to rise. Despite the government's assurances that the changes aim to support those who can work, critics argue that the measures disproportionately affect those who are already struggling.
In light of these developments, it is crucial for the government to engage in meaningful dialogue with disability advocates and affected individuals to ensure that the reforms do not further marginalize those who rely on these essential benefits. The upcoming months will be critical as the DWP releases more details on the implementation of these changes and their anticipated impacts.
