The UK government has unveiled significant reforms to its welfare system, spearheaded by Work and Pensions Secretary Liz Kendall, aiming to save £5 billion by 2030. The changes include tightening eligibility for the Personal Independence Payment (PIP), which assists individuals with long-term health conditions, along with abolishing the Work Capability Assessments (WCA) by 2028. These reforms mark the government’s attempt to address rising welfare costs and encourage more people to return to the workplace.
During her address to the House of Commons on March 18, 2025, Kendall outlined these sweeping changes, emphasizing the urgency of reform as the government seeks to manage high spending on welfare. Noting the current fiscal pressures, including skyrocketing costs associated with health-related benefits, she stated, “The system we inherited is failing the very people it is supposed to help.”
Among the most notable changes, the government plans to require individuals applying for the daily living element of PIP to achieve a minimum score, meaning many who previously qualified may find themselves excluded from receiving benefits. Starting November 2026, claimants must score at least four points from defined activities, effectively narrowing access to these benefits.
“Our reforms will focus support on those with the greatest needs,” Kendall affirmed. The government asserts this will lead to a more sustainable welfare system, which aims to alleviate financial burdens on taxpayers. Currently, approximately 4 million individuals aged 16 to 64 receive health-related benefits, reflecting the increasingly prevalent challenges related to mental health among the working-age population.
The Work Capability Assessment, which has been critiqued for its complexity and inefficiency, will be eliminated. From 2028, evaluations to determine work capability will instead be incorporated within the PIP framework, which the government believes will streamline the process.
A “right to try” scheme was also introduced, allowing individuals to attempt employment without immediately jeopardizing their entitlements. “This will give people confidence to take the plunge and try work without the fear this will put their benefits at risk,” Kendall added.
On another front, the Universal Credit system will see significant investment, with Kendall announcing plans for a permanent above-inflation increase to the standard allowance, set to provide individuals with £775 additional funding by 2029/30. This is intended to address what the government refers to as “perverse incentives” within the existing welfare structure.
Criticism of the reforms has been vocal and varied. Advocacy organizations, including the Mental Health Foundation, have challenged the changes, stating they may disproportionately harm vulnerable groups. Mark Rowland, chief executive of the Foundation, noted, “While parts of today’s announcements make strides, packaging these alongside cuts to support is disjointed and counterproductive.” This sentiment has been echoed by other charity leaders who contend the measures could drive millions of people already struggling with financial hardships toward greater distress.
There are also concerns about the impact on young people; the government plans to consult on preventing individuals under 22 from claiming incapacity benefits under Universal Credit. Critics argue this demographic requires additional protections, especially when many young people face high unemployment rates.
The political response has been similarly charged. The Liberal Democrats condemned what they termed as inadequate changes, urging the government to focus on comprehensive solutions to repair health and social care systems. “If the government was serious about cutting welfare spending, it would get serious about fixing the broken Department of Work and Pensions,” said Steve Darling, the party’s work and pensions spokesperson.
Conversely, the Conservative Party has labeled the plan as “too little, too late,” with Shadow Work and Pensions Secretary Helen Whately arguing for the importance of getting people back to work. Meanwhile, trade union RMT criticized these cuts, describing them as targeting society's most vulnerable, including disabled individuals and caregivers.
With upcoming economic forecasts, including Chancellor Rachel Reeves’s Spring Statement on March 26, the government is under immense scrutiny to justify these drastic reforms. With the specter of rising welfare bills looming over economic evaluations, Kendall’s proposals aim to re-establish fiscal viability within the welfare sector.
Yet, questions remain about the practicality and broader social impacts of such stringent reforms. For many, the anxiety about how these changes will translate to tangible job opportunities lingers, particularly among those with disabilities and long-term health issues.
The reforms’ potential to affect hundreds of thousands of claimants highlights the delicate balance policymakers must maintain between fiscal responsibility and compassionate support for those most at risk. With substantial evidence indicating the rising mental health issues among the working-age population, observers are left wondering whether these measures can succeed without inflicting undue hardship on the very individuals they aim to uplift.
The government argues its approach will lead to stronger labor market participation and reduce dependency on welfare. Still, the experience and insights from various advocacy groups spotlight the significant gaps and challenges inherent within this new welfare paradigm.
For now, the announcements have paved the way for intense public debate about the future of welfare support systems, challenging the government to walk the fine line between reform and recklessness as it embarks on this substantial overhaul.
Moving forward, the real test lies in the ability of these reforms to create the intended effects—to roll back the welfare budget without disenfranchising those who are already struggling to find their place within the workforce.
