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At-a-glance: Key changes to benefits in welfare shake-up | At-a-glance: Key changes to benefits in welfare shake-up |
(32 minutes later) | |
The government has announced plans for major changes to the benefits system aimed at cutting the growing amount the UK spends on welfare. | The government has announced plans for major changes to the benefits system aimed at cutting the growing amount the UK spends on welfare. |
Stricter tests for personal independence payments (Pips) | Stricter tests for personal independence payments (Pips) |
Pip is paid to people in England and Wales 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 people in England and Wales who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition. |
It is not means tested and is available to people who are working. | It is not means tested and is available to people who are working. |
The payments will go up in line with inflation this year. | The payments will go up in line with inflation this year. |
But the eligibility criteria will be tightened up from November 2026, potentially resulting in reduced payments for many. | But the eligibility criteria will be tightened up from November 2026, potentially resulting in reduced payments for many. |
It will become harder to qualify for the daily living component of Pip, which starts at £72.65 a week. | It will become harder to qualify for the daily living component of Pip, which starts at £72.65 a week. |
There will also be a review of the Pip assessment process. | There will also be a review of the Pip assessment process. |
But those with most severe conditions will not face reassessments | But those with most severe conditions will not face reassessments |
The government wants more frequent reassessments for many people claiming Pip, with more face-to-face assessments. | The government wants more frequent reassessments for many people claiming Pip, with more face-to-face assessments. |
But those with the most severe, long-term conditions will no longer face any reassessments, under the proposed reforms. | But those with the most severe, long-term conditions will no longer face any reassessments, under the proposed reforms. |
Work capability assessment to be scrapped | Work capability assessment to be scrapped |
The work capability assessment that determines who is eligible for incapacity benefits will be scrapped in 2028, under the proposals. | The work capability assessment that determines who is eligible for incapacity benefits will be scrapped in 2028, under the proposals. |
Instead, people applying for health-related financial support and disability benefits will only face one assessment, based on the current Pip system. | Instead, people applying for health-related financial support and disability benefits will only face one assessment, based on the current Pip system. |
Incapacity benefits payments frozen next year | Incapacity benefits payments frozen next year |
Incapacity benefits under universal credit will be frozen in cash terms for existing claimants at £97 per week from April next year - this means they will not be increased in line with inflation until 2029/30. | Incapacity benefits under universal credit will be frozen in cash terms for existing claimants at £97 per week from April next year - this means they will not be increased in line with inflation until 2029/30. |
The amount will be reduced to £50 per week in 2026/2027 for new claimants. | The amount will be reduced to £50 per week in 2026/2027 for new claimants. |
But those receiving the new reduced universal credit health element after April 2026, who have the most severe, life-long health conditions, who have no prospect of improvement and will never be able to work, will see their incomes protected through an additional premium. | But those receiving the new reduced universal credit health element after April 2026, who have the most severe, life-long health conditions, who have no prospect of improvement and will never be able to work, will see their incomes protected through an additional premium. |
It also means those in that group will not be reassessed in the future. | It also means those in that group will not be reassessed in the future. |
There will also be an above inflation increase in the standard rate of universal credit for all those seeking work, adding up to £775 a year extra by 2029/30. | There will also be an above inflation increase in the standard rate of universal credit for all those seeking work, adding up to £775 a year extra by 2029/30. |
The government says this will help tackle the "perverse incentives" in the system that keep people on benefits. | The government says this will help tackle the "perverse incentives" in the system that keep people on benefits. |
Reduced incapacity benefits for under 22s | Reduced incapacity benefits for under 22s |
Those aged under 22 will no longer be able to claim the incapacity benefit top-up to universal credit under these proposals. | Those aged under 22 will no longer be able to claim the incapacity benefit top-up to universal credit under these proposals. |
The government says any savings generated from the delay would be reinvested into work support and training opportunities for this age group. | The government says any savings generated from the delay would be reinvested into work support and training opportunities for this age group. |
Ministers are also consulting on raising the age at which young people move from Disability Living Allowance for children to Pip from 16 to 18. | Ministers are also consulting on raising the age at which young people move from Disability Living Allowance for children to Pip from 16 to 18. |
The idea is that young people will have work and training "rather than a pathway to economic inactivity", the DWP says. | The idea is that young people will have work and training "rather than a pathway to economic inactivity", the DWP says. |
More incentives to work | More incentives to work |
The government says it wants to ease people's fears about losing benefits if they take a job and it doesn't work out. | The government says it wants to ease people's fears about losing benefits if they take a job and it doesn't work out. |
Ministers say they will introduce legislation "as soon as possible" to guarantee that trying work will not lead to an automatic Pip or work capability reassessment. | Ministers say they will introduce legislation "as soon as possible" to guarantee that trying work will not lead to an automatic Pip or work capability reassessment. |
It's hoped a newly-designed "support conversation" will give people who have a health condition or disability help to access work. | |
Consultations will start on the Access to Work scheme, looking at improvements to help people stay in the workplace, with adjustments like aids or assistive tech. | |
Overall, Kendall announced a £1bn package of support to help disabled people and those with long-term conditions into work. | |
Differences in Scotland and Northern Ireland | Differences in Scotland and Northern Ireland |
Most of the measures apply to the whole of Great Britain. | Most of the measures apply to the whole of Great Britain. |
Pip applies to England and Wales only. | Pip applies to England and Wales only. |
If there is a cut in the budget for Pip, a proportionate figure will be cut from the amount the Treasury gives to the Scottish government. | If there is a cut in the budget for Pip, a proportionate figure will be cut from the amount the Treasury gives to the Scottish government. |
So Scottish ministers would have the choice of applying a similar scale of cuts, or of finding funds from other spending, or tax, to fill that gap. | So Scottish ministers would have the choice of applying a similar scale of cuts, or of finding funds from other spending, or tax, to fill that gap. |
Most of the measures will not apply directly to Northern Ireland but the DWP says it will work with the devolved government there on similar moves. | Most of the measures will not apply directly to Northern Ireland but the DWP says it will work with the devolved government there on similar moves. |
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