The DWP is making changes to Personal Independence Payments (PIP) and Universal Credit in a bid to save billions of pounds a year – here is how the changes could impact you
This week brought significant proposed changes to both Personal Independence Payments (PIP) and Universal Credit. But what does this major revamp mean for you?
The initiatives are projected to save over £5billion annually by 2029/30, with the majority of these savings anticipated to stem from alterations to PIP and Universal Credit.
Liz Kendall, Secretary of State for Work and Pensions, announced the changes in the Commons earlier this week, but has faced significant backlash from backbench MPs and charities.
The Resolution Foundation think tank predicts that the tightening of PIP eligibility could result in between 800,000 and 1.2 million individuals losing between £4,200 and £6,300 annually by the decade’s end.
Here’s how the changes might affect you.
Alterations to the points system.
Under existing regulations, you need between eight and 11 points to qualify for the standard rate of the daily living component of PIP. For the higher rate, you require 12 points or more.
However, from November 2026, you would need a minimum of four points in at least one activity to receive the daily living part of PIP. The eligibility criteria for the mobility component of PIP will remain unchanged.
No reassessments for most severe conditions.
PIP claimants, brace yourselves for more frequent check-ins!
The benefit is usually dished out for a set span, ranging from nine months to a decade. But under new plans, many PIP recipients will face more regular reassessments, though those with the most serious conditions can wave goodbye to these evaluations.
Get ready for more up-close-and-personal appointments, as the bulk of PIP assessments will shift to in-person encounters rather than phone or video chats. However, if you can’t make it to a face-to-face meeting, “reasonable adjustments” will be on offer.
Work Capability Assesment scrapped
In other news, the Work Capability Assessment (WCA) tied to Universal Credit is getting the boot in 2028. This assessment currently figures out if someone’s fit to work when they’re applying for Universal Credit. Instead, any health-related support within a Universal Credit claim will be judged during the PIP assessment process.
Universal Credit standard allowance set to increase.
A “permanent, above-inflation rise” to the standard allowance of Universal Credit is on the cards. According to the Government, this translates to an annual increase of £775 in cash terms by 2029/30.
The standard allowance is the fundamental amount received in Universal Credit before any additional elements or deductions are applied.
No means-testing for PIP.
There are no plans to introduce means-testing for PIP. As a result, it will continue to be assessed based on how a health condition affects daily life, rather than income, employment status, or savings.
PIP can be claimed while working and in conjunction with other benefits.
No freeze on PIP payments.
Additionally, PIP payments will not be frozen at their current rates. Despite initial reports suggesting the Government was considering a one-year freeze on PIP payment rates, it appears to have backtracked on this plan following strong opposition from some Labour MPs.
No voucher system for PIP payments.
Furthermore, PIP payments will not be replaced by vouchers. The former Government had hinted that PIP payments might be swapped for vouchers down the line.
However, it’s now been officially announced that Labour won’t be pursuing this concept. The proposal to substitute cash payments with vouchers redeemable for equipment, aids or services was initially tabled by the previous Government in a consultation paper last year.
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