Changes to Benefits

The government has proposed major changes to Personal Independence Payment (PIP) and the health element of Universal Credit (UC), originally aiming to cut £5bn from welfare spending.

But after public and political pressure, many of the planned reforms have been scaled back.

What's Changing – PIP

Original Plan: Tighten rules for the daily living component, requiring higher scores in individual activities (e.g., preparing food, washing) to qualify.

Now: Only new applicants will be affected by the new criteria - and only after a formal review concludes.

Existing claimants and those reassessed will not face any changes for now.

What's Changing – Universal Credit

Original Plan: Cut the monthly health-related top-up for new claimants from £416.19 to £216 starting November 2025.

Now: Some exemptions introduced for those with severe, lifelong conditions.

The standard UC allowance will rise above inflation until 2029/30 - worth around £725 extra for a single adult by then.

Existing claimants will continue to receive the current rate, which will be frozen until 2029/30.

What's Next?

The reforms passed their second reading in Parliament on 1st July, but key changes will depend on the outcome of a review. So, it's possible some or all changes may not go ahead.