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| What are the Pip and universal credit changes and who will be affected? | What are the Pip and universal credit changes and who will be affected? |
| (about 1 hour later) | |
| Changes to the welfare system aimed at saving £5bn a year by 2030 and getting more people into work have been announced by the government. | |
| It will be harder to claim a key disability benefit called Personal Independence Payment (Pip) under the proposals. | It will be harder to claim a key disability benefit called Personal Independence Payment (Pip) under the proposals. |
| The basic level of universal credit - the largest working age benefit - will rise, but those aged under 22 will no longer be able to claim incapacity benefit on top. | |
| Live: Kendall unveils crackdown on benefits aimed at saving £5bn by 2030 | Live: Kendall unveils crackdown on benefits aimed at saving £5bn by 2030 |
| At-a-glance: Key changes to benefits in welfare shake-up | At-a-glance: Key changes to benefits in welfare shake-up |
| What is Pip and how are the rules changing? | What is Pip and how are the rules changing? |
| Pip is paid to more than 3.6 million people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition. | Pip is paid to more than 3.6 million people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition. |
| There are two elements - a daily living component and a mobility component. Claimants may be eligible for one or both. | There are two elements - a daily living component and a mobility component. Claimants may be eligible for one or both. |
| Daily living covers areas such as requiring help with preparing food, washing, reading and managing your money. The mobility element includes physically moving around or getting out of your home. | Daily living covers areas such as requiring help with preparing food, washing, reading and managing your money. The mobility element includes physically moving around or getting out of your home. |
| Applicants are scored on a points system based on their ability to carry out everyday tasks and on their mobility. Those who score 8-11 points in total receive the standard rate of Pip, and those who score 12 points and over are eligible for the enhanced rate. | Applicants are scored on a points system based on their ability to carry out everyday tasks and on their mobility. Those who score 8-11 points in total receive the standard rate of Pip, and those who score 12 points and over are eligible for the enhanced rate. |
| From November 2026, the government says applicants will need to score at least four points in one activity to receive the daily living component of Pip. | From November 2026, the government says applicants will need to score at least four points in one activity to receive the daily living component of Pip. |
| Eligibility for mobility payments will not be affected. | Eligibility for mobility payments will not be affected. |
| The payments for daily living are: | The payments for daily living are: |
| A standard rate of £72.65 per week | A standard rate of £72.65 per week |
| An enhanced rate of £108.55 per week | An enhanced rate of £108.55 per week |
| For mobility the payments are: | For mobility the payments are: |
| A standard rate of £28.70 per week | A standard rate of £28.70 per week |
| An enhanced rate of £75.75 per week | An enhanced rate of £75.75 per week |
| Pip is usually paid every four weeks and is tax-free. It does not change depending on your savings or income and does not count as income affecting other benefits, or the benefit cap. You can get Pip if you are working. | Pip is usually paid every four weeks and is tax-free. It does not change depending on your savings or income and does not count as income affecting other benefits, or the benefit cap. You can get Pip if you are working. |
| At present, the payment is made for a fixed period of time between one and 10 years, after which it is reviewed. A reassessment could come earlier if your circumstances change. | At present, the payment is made for a fixed period of time between one and 10 years, after which it is reviewed. A reassessment could come earlier if your circumstances change. |
| Under the changes announced by the government, there will be more frequent reassessments for many people claiming Pip. Many recipients could be affected. | Under the changes announced by the government, there will be more frequent reassessments for many people claiming Pip. Many recipients could be affected. |
| However, those with the highest levels of a permanent condition or disability will no longer face reassessment. | However, those with the highest levels of a permanent condition or disability will no longer face reassessment. |
| Initially, it was thought Pip payments might not be increased in line with inflation for a year, but the government has said they will not be frozen or means tested. | Initially, it was thought Pip payments might not be increased in line with inflation for a year, but the government has said they will not be frozen or means tested. |
| Pip is paid in England, Wales and Northern Ireland. | Pip is paid in England, Wales and Northern Ireland. |
| There is a similar but separate benefit in Scotland called the Adult Disability Payment. | There is a similar but separate benefit in Scotland called the Adult Disability Payment. |
| How is universal credit changing? | How is universal credit changing? |
| The government has also made changes to universal credit, which is currently paid to 7.5 million people. | The government has also made changes to universal credit, which is currently paid to 7.5 million people. |
| At present, more than three million recipients have no requirement to find work, a number that has risen sharply. | At present, more than three million recipients have no requirement to find work, a number that has risen sharply. |
| The basic level of universal credit is worth £393.45 a month to a single person who is 25 or over. | The basic level of universal credit is worth £393.45 a month to a single person who is 25 or over. |
| But if you have limited capacity to work because of a disability or long term condition, this payment more than doubles, due to a top up of £416.19. | But if you have limited capacity to work because of a disability or long term condition, this payment more than doubles, due to a top up of £416.19. |
| Under the proposals, claimants will not be eligible to get this incapacity top-up until they are aged 22 or over. | Under the proposals, claimants will not be eligible to get this incapacity top-up until they are aged 22 or over. |
| New claimants will also see this top-up fall from £97 extra per week in 2025 to £50 extra per week by next year. | |
| The higher rate for existing health-related claimants will be frozen until 2029-2030. | |
| At the same time, the basic payment level will rise, reaching a £775 annual increase by the year 2029-30. | At the same time, the basic payment level will rise, reaching a £775 annual increase by the year 2029-30. |
| What is being done to get more people into work? | |
| The government says it wants to help those who can work back into employment, while doing more to protect those with severe conditions who are unable to do so. | |
| As part of this it will invest £1bn in "high-quality, tailored and personalised support" to help people find jobs. | |
| A number of changes have been announced which, the government says, break the link between trying to get into work and losing benefits. | |
| The work capability assessment, which analyses eligibility for the health related top-up to universal credit, will be scrapped by 2028. | |
| Instead, claimants will have to go through the Pip system to claim for a health benefit. The government says they will be assessed on how their disability affects their daily life, rather than on their capacity to work. | |
| While you can receive universal credit or Pip while in employment, universal credit is means-tested and tapers off, while Pip is not affected by how much someone works or their level of savings. | |
| Under a new "right to try" system people will not be penalised for trying to get back in to work, the government says. | |
| The government will also merge job seekers allowance and employment seekers allowance into a single time-limited benefit that is not means-tested. | |
| Why is the government aiming to cut welfare spending? | Why is the government aiming to cut welfare spending? |
| Overall, the government currently spends £65bn a year on health and disability-related benefits. This is projected to increase to £100bn by 2029. | Overall, the government currently spends £65bn a year on health and disability-related benefits. This is projected to increase to £100bn by 2029. |
| Pip is now the second-largest element of the working-age welfare bill, with spending expected to almost double to £34bn by 2029-30. | Pip is now the second-largest element of the working-age welfare bill, with spending expected to almost double to £34bn by 2029-30. |
| When Pip was introduced in 2013, the aim was to save £1.4bn a year by reducing the number of people eligible for payments. However, initial savings were modest and the number of claimants has risen. | When Pip was introduced in 2013, the aim was to save £1.4bn a year by reducing the number of people eligible for payments. However, initial savings were modest and the number of claimants has risen. |
| About 1.3m people now claim disability benefits primarily for mental health or behavioural conditions such as ADHD. | About 1.3m people now claim disability benefits primarily for mental health or behavioural conditions such as ADHD. |
| That is 44% of all working age claimants, according to the independent economic think-tank, the Institute for Fiscal Studies (IFS). | That is 44% of all working age claimants, according to the independent economic think-tank, the Institute for Fiscal Studies (IFS). |