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Resource Updated:
August 4, 2025
Quick overview
Universal Credit:
-The health top-up will be denied to under
-22s to prevent a direct path from education to benefits
- The top-up will also be cut for new claimants
- from £97 to £50 per week by 2026/27
- a cut of more than £2,000 a year
- and frozen for existing ones
- The top rate of Universal Credit for the most disabled will be cut (details in Spring Statement), but the standard rate will rise above inflation for the first time, reaching a £775 annual increase by 2029-30
- The Work Capability Assessment will be scrapped in 2028, replaced by the PIP assessment instead
- Claimants with severe, lifelong disabilities will no longer face reassessments to give them the "dignity" they deserve
PIP:
- PIP assessment process will be reviewed
- Minimum age to claim PIP raised to 18
- PIP will not be frozen or means-tested, but eligibility will be tightened
- From November 2026, only the most severely disabled will qualify, requiring four points in at least one activity for the daily living allowance (this will not affect the mobility component of PIP)
- An example of this change is that individuals who require assistance with cooking a meal may qualify, while those who can use a microwave will not. Similarly, those who need reminders to engage socially won’t qualify, but those who need direct help will
Support into work:
- Will merge Jobseekers' Allowance (JSA) and Employment and Support Allowance (ESA) into a new unemployment benefit that pays more but lasts for a limited time, without needing to prove you can't work
- A "right to try" work for the disabled, allowing benefit claimants to try working without the fear of losing their financial support due to immediate reassessments
- DWP will spend an extra £1bn helping people find jobs
The Government will not release the impact assessment of these cuts, detailing how many people will be affected and to what extent, until the Spring Statement next week
Please note that this green paper will also undergo consultation and may be revised accordingly
The PIP reform also requires a Parliamentary vote to change the assessment criteria, which may face strong resistance from some Labour MPs
Work and Pensions Secretary Liz Kendall: "Every day there are more than1,000 new PIP awards. That’s the equivalent of adding a population the size of Leicester every single year. That is not sustainable long term, above all, for the people who depend on this support"
- Overall benefit cuts aim to save £5bn by 2030
Additional Categories:
Resource Updated:
August 4, 2025
Quick overview
Universal Credit:
-The health top-up will be denied to under
-22s to prevent a direct path from education to benefits
- The top-up will also be cut for new claimants
- from £97 to £50 per week by 2026/27
- a cut of more than £2,000 a year
- and frozen for existing ones
- The top rate of Universal Credit for the most disabled will be cut (details in Spring Statement), but the standard rate will rise above inflation for the first time, reaching a £775 annual increase by 2029-30
- The Work Capability Assessment will be scrapped in 2028, replaced by the PIP assessment instead
- Claimants with severe, lifelong disabilities will no longer face reassessments to give them the "dignity" they deserve
PIP:
- PIP assessment process will be reviewed
- Minimum age to claim PIP raised to 18
- PIP will not be frozen or means-tested, but eligibility will be tightened
- From November 2026, only the most severely disabled will qualify, requiring four points in at least one activity for the daily living allowance (this will not affect the mobility component of PIP)
- An example of this change is that individuals who require assistance with cooking a meal may qualify, while those who can use a microwave will not. Similarly, those who need reminders to engage socially won’t qualify, but those who need direct help will
Support into work:
- Will merge Jobseekers' Allowance (JSA) and Employment and Support Allowance (ESA) into a new unemployment benefit that pays more but lasts for a limited time, without needing to prove you can't work
- A "right to try" work for the disabled, allowing benefit claimants to try working without the fear of losing their financial support due to immediate reassessments
- DWP will spend an extra £1bn helping people find jobs
The Government will not release the impact assessment of these cuts, detailing how many people will be affected and to what extent, until the Spring Statement next week
Please note that this green paper will also undergo consultation and may be revised accordingly
The PIP reform also requires a Parliamentary vote to change the assessment criteria, which may face strong resistance from some Labour MPs
Work and Pensions Secretary Liz Kendall: "Every day there are more than1,000 new PIP awards. That’s the equivalent of adding a population the size of Leicester every single year. That is not sustainable long term, above all, for the people who depend on this support"
- Overall benefit cuts aim to save £5bn by 2030
Additional Categories:
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