Plans to overhaul parts of the UK’s benefits system have changed significantly, after the Government stepped back from some of its most controversial proposals following pressure from MPs and campaigners.
In a major climbdown, Prime Minister Keir Starmer’s government has dropped immediate plans to restrict access to Personal Independence Payment (PIP), which is a benefit that provides support to people living with a long-term illness or disability. Proposed changes to Universal Credit have also been softened.
Disability advocate Amelia Peckham said: “The concern is that there is now not going to be a saving as a result of the concessions, which undermines the entire purpose of this in the first place.
“Sadly, it does look like the chancellor made a miscalculation and now the rest of the Labour Party are having to clean up a mess by making concessions. The cost saving has bounced from £5 billion to £3.5 billion to £2.5 billion to today, where it looks like there might not be any cost saving at all.”
So, where does all this leave people currently receiving these benefits, or those who may need to apply in the future? Here’s what you need to know.
What is happening to Personal Independence Payments (PIP)?
The Government had originally planned to make it harder to qualify for PIP by raising the threshold of support needed. This would have involved introducing stricter assessment criteria, particularly when looking at which daily tasks claimants could perform independently.
For now, nothing is changing with PIP. The Government has backed away from plans to make it harder to qualify for the benefit, at least until a full review is carried out.
This review will be led by Disabilities Minister Sir Stephen Timms, who will invite input from disabled people and advocacy groups. It will be published by the end of next year at the earliest, and any recommendations will need to go through Parliament before becoming law.
This means that for the foreseeable future, eligibility criteria for PIP remain the same. If you already receive PIP, or are planning to apply, there are no immediate changes to your benefit.
People will continue to be assessed based on how well they can carry out everyday activities such as washing, dressing, preparing food, or managing money. Points are awarded for each activity, and applicants need to score eight points for the standard rate or 12 points for the enhanced rate.
You can find out more about how PIP works in our article Personal Independence Payment (PIP) explained: what is it and who’s eligible?
How is Universal Credit changing?
There are a few more immediate changes to Universal Credit – particularly for people claiming it due to illness or disability.
At the moment, people assessed as having limited capability for work and work-related activity (LCWRA) due to having a health condition or disability receive an extra £423.27 a month on top of their basic Universal Credit. The Government has reversed its plan to freeze this health-related top-up so it will now increase in line with inflation, or rising living costs.
However, from 2026, the health top-up will be reduced from £97 a week to £50 a week for new claimants. Existing claimants will continue under the current system.
The basic rate of Universal Credit is expected to rise from £92 to £106 a week by 2030, but this may not fully offset the cut in the top-up for everyone. Learn more about Universal Credit and who’s eligible in our guide Everything you need to know about Universal Credit.
What support is available to help people back into work?
As part of its wider welfare reform plans, the Government is bringing forward £1 billion in funding to help people get back into employment. This support was originally due to be released later in the Parliament, but it’s now being made available this year.
The funding may be spent on schemes for retraining, skills development, and targeted support for people with health conditions who want to return to work, but further details are yet to be confirmed.
A final thought…
Changes to the benefit system can be deeply disconcerting, especially if you’re reliant on them to make ends meet. However, if you’re currently receiving PIP or Universal Credit, the key message is: nothing is changing right now, and your current payments and entitlements remain in place.
If you’re planning to apply for either benefit in the coming months, the existing rules still apply.
While future changes are likely, especially once the review of PIP has been carried out in 2026 – any new rules would need to go through the usual consultation and legislative process, which can take time. There will be opportunities for campaigners, experts, and the public to have their say.
Need help with benefits?
If you need help or advice with a Universal Credit claim, you can call the Universal Credit helpline from Monday to Friday, 8am to 6pm on:
- Telephone: 0800 328 5644
- Textphone: 0800 328 1344
- Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 328 5644
- Video relay service for British Sign Language (BSL) users – check if you can use this service
- Welsh language: 0800 328 1744
If you’re applying for PIP and want to complete the form over the phone, you’ll need to call the PIP new claims phone line through one of the following lines. These lines are open Monday to Friday, 8am to 5pm:
- Telephone: 0800 917 2222
- Textphone: 0800 917 7777
- Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 917 2222
- British Sign Language (BSL) video relay service if you’re on a computer
- Calling from abroad: +44 191 218 7766
Applying for PIP by post
If you want to complete it by post, you’ll need to send a letter to the address below:
Personal Independence Payment New Claims
Post Handling Site B
Wolverhampton
WV99 1AH
Applying for PIP online
If you want to fill out the form online, this is a new service that’s only available to people in certain postcodes. You can see if the option is available to you here.
There are several charities and organisations which can advise you about any benefits you might be entitled to and can help you submit a claim.
These include Turn2us, which can assess your eligibility for benefits through its Turn2us benefits calculator or by phone on 0808 802 2000. The site Entitledto.co.uk also has a free benefits calculator, which you can use to see what you qualify for.
Alternatively, you can get help from Citizens Advice. You can search for your local Citizens Advice here or you can telephone their customer service helpline on 0344 411 1444. Find out more about these organisations and other sources of help in our guide Five free sources of help if you’re making a benefits claim.
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