Welfare reform: health-related and disability benefits

What's happening?

The government plans to undertake a review of the PIP assessment, to consider ‘how it needs to adapt for the future’.

The terms of reference for the review were published on 30 June 2025.

On 21 July 2025 the government stated these will be updated ‘shortly’ and that it ‘will engage widely over the summer to design the process for the work of the review'.

When?

The review is expected to be concluded in autumn 2026.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, para 159

Written ministerial statement: Welfare Reform, 30 June 2025

Timms Review of the PIP Assessment: Terms of Reference, 30 June 2025 (pdf)

Answer to Parliamentary question, 21 July 2025

What's happening?

The government initially proposed to make it an additional condition of entitlement to the daily living component of PIP that a claimant score at least 4 points for one of the daily living activities. This was included in the Universal Credit and Personal Independence Payment Bill and was to apply to new claimants from November 2026 and to existing claimants when their award was reviewed after that date.  

On 30 June 2025, at second reading of the Bill in the Commons, the government announced it would introduce amendments so that the 4-point rule would only apply to new PIP claimants and not existing claimants.

On 1 July 2025 the government announced it would remove this provision from the Bill entirely (which was renamed as the Universal Credit Bill - and is now the Universal Credit Act) and will only make changes to PIP eligibility activities and descriptors following the Timms review.

When?

Changes to be considered after the Timms review is completed in autumn 2026

More information

Hansard, 1 July 2025, column 219

What's happening?

The government is considering changes to ‘improve communication’ with those claimants who have ongoing awards of PIP who are currently intended to have a ‘light touch’ review every 10 years.    

For claimants whose condition is not likely to change in the long-term or, if they get the maximum amount of PIP, whose condition is only likely to get worse, these include:

• improving the information it provides when it writes to people about ongoing PIP award decisions
• looking at the support offered to people receiving ongoing awards between ‘light touch’ reviews, and
• reviewing the length of time between ‘light touch’ reviews.

The government has stated it's not consulting on this measure.

When?

Estimated date given as 2026/27

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 171-3

What's happening?

The government says it's considering what more it can do to get people to provide the right supporting evidence at the earliest opportunity without placing additional burdens on any part of the NHS. 

It also plans to explore how the process of transferring supporting medical evidence from the NHS to the DWP could be digitalised, where people have consented to the NHS sharing information with the DWP.

When?

Estimated date given as 2027/28

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, para 175-6

What's happening?

The government says it's exploring ways it could use evidence from eligibility for other services to reduce the need for some people with very severe health conditions and disabilities to undergo a full PIP assessment. 

When?

Estimated date given as 2026/27

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, para 169

What's happening?

The government plans to increase the UC standard allowance for new and existing claims above the consumer price index in the years 2026/27 to 2029/30. It's stated the rate of the UC standard allowance for a single person aged 25 or over would increase by £7 per week (from £91 per week in 2024/2025 to £98 per week in 2026/2027). 

Section 1 of the UC Act provides for an increase in the standard allowance over years 2026/27 to 2029/30 by rate of CPI plus defined ‘uplift percentage’. 

When?

April 2026 

More information

s1 Universal Credit Act 2025

What's happening?

The limited capability for work-related activity (LCWRA) element (which is referred to in the proposals as the ‘health element') will be reduced to £217.26 per calendar month, unless the claimant:

• is a ‘pre-2026 claimant’
• is a ‘severe conditions criteria claimant’, or
• counts as terminally ill

A 'pre-2026 claimant' is defined as someone who has been continuously entitled to an award of UC that included a LCWRA element since before 6 April 2026. In determining whether a claimant has been continuously entitled to UC, the DWP will ignore periods when they stop being entitled to UC because their (and/or their partner's) income increases, if they become entitled to UC again within six months of the date their UC entitlement ended.

A 'severe conditions criteria claimant' is defined as someone who has been assessed as having LCWRA, if at least one of the LCWRA descriptors constantly applies to them because of a specific bodily disease or disablement, or a specific mental illness, that they will have for the rest of their life which has been diagnosed by an appropriately qualified health care professional in the course of providing NHS services.

To constantly apply, a descriptor must apply to them at all times or on all occasions on which they undertake or attempt to undertake the activity.

When?

Will apply to UC assessment periods starting on or after 6 April 2026

More information

s2 Universal Credit Act 2025

What's happening?

The amount of the limited capability for work (LCW) and limited capability for work-related activity (LCWRA) elements are to be frozen at the 2025/26 rate in the years from 2026/27 to 2029/30. 

However, in those years, the amount of either the LCWRA element or the standard allowance must be increased for 'pre-2026 claimants',  'severe conditions criteria claimants' or claimants who count as terminally ill, if otherwise the sum of those amounts would not increase by the rate of the consumer price index when compared to the preceding year.

For definitions of 'pre-2026 claimants' and 'severe conditions claimants', see under Change to the amount of the LCWRA element. 

When?

April 2026

More information

s4 Universal Credit Act 2025

What's happening?

The government plans that entitlement to extra financial support for health conditions in UC (ie, the limited capability for work-related activity (LCWRA) element) will be assessed via the PIP assessment rather than a work capability assessment and will be based on the impact of disability on daily living, not on capacity to work.

It states it's considering how individuals who currently meet LCWRA criteria due to 'non-functional special circumstances', (for example, those affected by cancer treatment, people with short-term conditions that get better, women with a high-risk pregnancy and those currently classed as having substantial risk) would be affected as they may not be eligible for PIP.

This requires a change to primary legislation. The government has stated that it's not consulting on this measure and further details will be published in a White Paper.

When?

Estimated date given as 2028/29

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 37 and 114-5

What's happening?

While the work capability assessment (WCA) is still in effect, the government says reassessments will be restarted.  

Initially, it says it will prioritise reassessments for people who are most likely to have had a change in their circumstances, including those who have short-term prognoses for which ‘we can reasonably anticipate a change in health condition has occurred (e.g., those with risks from pregnancy complications or those who have recovered following cancer treatment)'.

The government states that over time, it will then 'prioritise available reassessment capacity for other cohorts who are likely to change award.’

When?

The government states the implementation date is to be confirmed.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 161-2

What's happening?

The government has said it wants to focus on doing more face-to-face PIP and work capability assessments, while still using 'alternative assessment channels' to meet the specific needs of people who require them, for example as a reasonable adjustment.

Planned date

The government has stated the implementation date is to be confirmed.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, para 164

What's happening?

The government states it's looking at recording PIP and work capability assessments as standard following a recommendation from the Work and Pensions Select Committee. 

The stated aims of this change are to improve people’s trust in the health assessment process through greater transparency, using recordings as a learning opportunity to consider potential improvements to the quality of the assessment process, and to be available to people who are appealing the initial award given.

When?

The government has stated the implementation date is to be confirmed.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 166-7

What's happening?

The government plans to introduce a new non-means tested, contributory benefit, ‘unemployment insurance’, to replace both contributory/new-style ESA and contribution-based/new style JSA. It says this will:

• be paid at a rate equivalent to the 'current higher rate of new style ESA' (and the figure quoted indicates this is the rate for those aged 25 or over plus the support component)
• be paid for a limited time (the government gave the example of 6 to 12 months)
• not involve a health assessment
• have national insurance (NI) contribution conditions. As now, these will relate to a claimant's contribution record in the last two complete tax years prior to the benefit year in which the claim is made.
• be available to self-employed as well as employed people (presumably as additional classes of NI contribution would count towards the contribution condition)

The government states claimants would be expected to actively seek work, ‘with easements for those with work-limiting health conditions’ and that almost all disabled people and people with long-term health conditions receiving the new contributory benefit would be required, as a minimum, to participate in conversations as part of a new offer of tailored employment support with appropriate exemptions'.   

The government has consulted on this proposal. The consultation period ended on 30 June 2025.
 

When?

Estimated date given as 2028/29

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 53 and 151-156 

What's happening?

The income-related ESA personal allowance will increase in line with the changes to the UC standard allowance. For details, see Increase of UC standard allowance.

The rates of the severe disability premium, enhanced disability premium, work-related activity component and support component will not be uprated in the usual way in the years from 2026/27 to 2029/30.  However, in those years, the amounts of those premiums or components or the personal allowance must be increased if the sum of any combination of them would not increase by the rate of the consumer price index when compared to the preceding year.

When?

April 2026

More information

s5 Universal Credit Act 2025

What's happening?

The government has consulted on raising the minimum age at which young people in England and Wales can claim PIP from 16 to 18, including on raising the age at which young people in England and Wales on disability living allowance (DLA) are invited to claim PIP to 18. The consultation period ended on 30 June 2025.

It states the impact and interactions of any changes to DLA will need to be fully considered with the devolved governments, particularly Scotland where PIP has been replaced by adult disability payment and DLA has been replaced by child disability payment. 

When?

The government has stated the implementation date is to be confirmed.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 260-265

What's happening?

The government has consulted on introducing a minimum age of 22 for entitlement to the limited capability for work-related activity (LCWRA) element (the 'health element') within UC. The consultation period ended on 30 June 2025. 

The government states that this change, and the change to the minimum age for claiming PIP, would underpin the Youth Guarantee which involves expecting virtually all young people covered by the guarantee (aged 18 to 21) to be engaging with work or training-related activity. The government also states that the savings generated from this change would be reinvested into work support and training opportunities for this age group.

When?

Estimated date given as 2027/28

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 62 and 252-259

What's happening?

The government is introducing legislation to ensure that doing work for payment or in expectation of payment isn't a relevant change of circumstances that would trigger a PIP award review or a WCA reassessment for UC or new-style ESA. 

The government has confirmed that current UC linking rules mean people will be able to return to their previous benefit rate if their earnings mean they are no longer entitled to UC but then it doesn’t work out and they restart their claim within six months of their previous entitlement ending.

It has also consulted on other steps it could take to encourage people to try work. 

When?

Planned implementation date is 2026/27

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 39, 42, 125-129 and 163

Written ministerial statement: Welfare Reform, 30 June 2025

Draft regulations: The Universal Credit, Personal Independence Payment and Employment Support Allowance (Amendment) Regulations 2025 (pdf)

What's happening?

In the Spring Statement in March 2025, the government announced Pathways to Work funding of: 

• £200m in 26/27
• £300m in 27/28
• £400m in 28/29
• £1bn in 29/30 

On 30 June 2025 the government stated that the funding announced for Pathways to Work support towards employment would increase to:

• £200m in 2026/27
• £400m in 2027/28 (up from £300m)
• £600m in 2028/29 (up from £400m)
• £1bn in 29/30

The government states that this is in addition to the funding of the schemes: Connect to Work, WorkWell, local inactivity Trailblazers and the 1,000 new Pathways to Work advisers to support disabled people. 

When?

From 2026/27

More information

Written ministerial statement: Welfare Reform, 30 June 2025

What's happening?

Under government plans, people who are claiming work-related benefits and who are disabled or who have a work-limiting health condition will have a support conversation which 'focuses on their goals and acts as a gateway to a range of personalised support to help achieve them, for anyone who wants it'. 

The government states that this support conversation will centre on employment, but in the context of someone’s wider health and independent living aspirations and it's considering making the support conversation compulsory.

The government's proposals also include options for additional support, as well as an expectation that even those on the health element would be expected, as a minimum, to participate in periodic conversations about work and support (with exceptions where this would not be appropriate). It states: 'there will be the ultimate backstop of sanctions to underpin the expectations of engagement' but also says it 'will seek to understand the reasons before benefits are affected'.    

It has consulted on these proposals, including on how to 'determine who is subject to a requirement only to participate in conversations, or work preparation activity rather than the stronger requirements placed on people in the Intensive Work Search regime', noting that once the work capability assessment is abolished, there will be no limited capability for work group. 

The consultation ended on 30 June 2025.

When?

In March 2025 the government said it will be testing elements of the support conversation and 'Pathways to Work support offer' on a voluntary basis over the next year.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 42, 190-247

What's happening?

The government has consulted on the future of Access to Work and specifically on 3 potential possibilities:

• supporting employers directly to make workplaces accessible and inclusive, consistent with their legal responsibilities
• providing targeted funds to individuals to pay for workplace adaptations, beyond what could be considered reasonable adjustments
• shaping the market for aids, appliances and assistive technology, to reduce their cost and spread their adoption 

The government is also considering the potential for greater support for assistive technology to help people access employment and wider society. 

It has also consulted on future delivery models which it states could range from the continuation of a DWP-administered programme through to alternative organisational forms that could more directly involve disabled people and employers.

The government states as part of this it wants to consider:

• the existing legal duties on reasonable adjustments in the Equality Act 2010
• the support government currently provides to both employers and individuals
• advice and guidance available to both workers and employers

The consultation closed on 30 June 2025. The government has said it's considering the consultation responses and will set out its plans ‘in due course’.
 

When?

The government has stated the implementation date is to be confirmed.

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 59 and 281-5

Answer to the House of Commons, Hansard, written question, UIN 67724, 17 July 2025

What's happening?

The government plans to remove the three-day waiting period for SSP, so that entitlement can start on the first day of incapacity for work.

This change is in the Employment Rights Bill which is going through Parliament.

When?

April 2026

More information

Clause 10 Employment Rights Bill (pdf) 

Implementing the Employment Rights Bill: roadmap on gov.uk

What's happening?

The government intends to remove the requirement for SSP that, to qualify, a person's normal weekly earnings must be at or above the lower earnings limit.

This change is in the Employment Rights Bill that is going through Parliament.

When?

April 2026 

More information

Clause 11(3) Employment Rights Bill (pdf)

Implementing the Employment Rights Bill: roadmap on gov.uk

What's happening?

Under government plans the rate of SSP will be changed to the lower of either 80% of normal weekly earnings or the flat weekly rate of SSP. The flat weekly rate is currently £116.75 per week, but will increase to £118.75 per week in April 2025 subject to parliamentary approval.

This change is in the Employment Rights Bill which is going through Parliament.

When?

April 2026

More information

Clause 11(2) Employment Rights Bill (pdf) 

Implementing the Employment Rights Bill: roadmap on gov.uk

What's happening?

The government has consulted on a new DWP safeguarding approach, to make it clear what the department and its staff are expected to do to safeguard the public.

It states it will conduct a thorough review of its current processes, work with stakeholders to identify areas for improvement, and will then develop, implement and publish a new departmental wide approach to safeguarding. 

The government says it wants 'to build trust through being more transparent' and will:

• provide further information on the support available to help vulnerable people who use DWP services
• continue to publish additional support activities in the DWP's annual report and accounts
• publish learning the DWP takes from cases and other evidence
• consider publishing, in more detail, the minutes from the Serious Case Panel, ensuring it maintains the confidentiality of cases discussed
• develop an annual clinical governance progress report which will include clinical safeguarding referral data and departmental learning

When?

Estimated date given as 2025/26

More information

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper, paras 56, 180 and 184