Written by: Ellie Johnson
Political commentator
In a significant announcement, the government has introduced a series of extensive modifications to the UK’s benefits system with the goal of achieving substantial cost savings annually. Liz Kendall, the Work and Pensions Secretary, highlighted that these changes aim to establish a more “pro-work system” that motivates individuals to seek employment, while also safeguarding those who are unable to work. The revised system will raise the threshold for individuals with less severe conditions to access disability payments. Additionally, benefit payments for health conditions will be frozen for current recipients and nearly halved for new applicants.
It has been revealed that individuals under the age of 22 may face restrictions on receiving top-up payments for health conditions through universal credit. The government anticipates that these measures will result in reducing benefits expenditure by over £5 billion annually by 2029/30. While the overall benefits expenditure is projected to increase, Kendall emphasized that these changes are essential for putting welfare on a more sustainable path by emphasizing employment opportunities.
However, concerns have been raised by several charities and Labour MPs regarding the potential adverse effects of benefit reductions on disabled individuals, potentially leading them into poverty. In response to these apprehensions, the government decided to cancel the proposed freeze on personal independence payments (Pips), which provide additional financial aid to individuals with long-term health conditions. Despite this, eligibility criteria for Pips will become stricter starting November 2026, potentially affecting a significant number of claimants.
Furthermore, Kendall announced plans to abolish work capability assessments by 2028 to simplify the process of determining eligibility for additional benefits due to health conditions or disabilities. Assessments will be replaced by an evaluation based on the impact of an individual’s health condition rather than their capacity to work. Reassessments for benefit eligibility will be more frequent, except for those with severe and permanent health conditions
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