THE Department for Work and Pensions has issued a major update on PIP reform plans ahead of a major shake-up.
In March, the government revealed plans to tighten the rules for claiming personal independence payments (PIP).
The goal is to shave £5billion a year off the nation’s soaring welfare budget and drive more people to return to work.
Today, the proposed legislation to make this happen was introduced in Parliament for the first time.
The DWP’s Universal Credit and Personal Independence Payment Bill explains how the government plans to reduce the number of people claiming PIP by making the rules for eligibility stricter.
Currently, you qualify for PIP by earning enough points across different tasks, like cooking, cleaning, or managing money.
But, under the new rules, you’ll need to score at least four points on one specific daily living activity to qualify.
This means simply having minor difficulties across several areas may no longer be enough to qualify.
This change could see about 800,000 people lose out, with an average loss of £4,500 per year, according to government’s own impact assessment.
However, the Bill also introduces measures to protect existing claimants who might lose their payments.
If someone loses their PIP under the new rules, they will still receive payments for 13 weeks as a safety net.
This also applies to related benefits, such as carer’s allowance.
But campaigners, including disability equality charity Scope, said the longer transition period, up from an originally expected four weeks, “will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end”.
Food bank network Trussell said: “The last-minute details on protections offer something for a small proportion of people, but even they will still see a real-terms cut.
“The reality of this Bill is still record cuts in support for disabled people, and the biggest cuts to social security since 2015.”
The Universal Credit and Personal Independence Payment Bill has also set out how the government proposes to slash incapacity benefits offered to those on Universal Credit.
It also includes a proposal to hike the Universal Credit standard allowance above inflation over the next four years.
What is PIP and who is eligible?
HOUSEHOLDS suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP).
The maximum you can receive from the Government benefit is £187.45 a week.
PIP is for those over 16 and under the state pension age, currently 66.
Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around – or both – for three months, and you expect these difficulties to continue for at least nine months (unless you’re terminally ill with less than 12 months to live).
You can also claim PIP if you’re in or out of work and if you’re already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit.
PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you.
You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £29.70 or £77.05.
On the daily living part of PIP, the weekly rate is either £73.90 or £110.40 – and you could get both elements, so up to £187.45 in total.
You can claim PIP at the same time as other benefits, except the armed forces independence payment.
What’s happening with Universal Credit?
The government plans to freeze the extra health payments available to those on Universal Credit who are unable to work.
For people already on Universal Credit, the current incapacity payment of £416.19 a month for those unable to work will be frozen until 2030.
This means the payment will no longer increase with inflation each spring.
However, for new claims starting from April 2026, this very same payment will be cut by half, to approximately £208 a month (or £50 a week).
This reduced amount will also be frozen until 2030, meaning new claimants will receive significantly less extra support.
At the same time, the government is proposing to hike the Universal Credit standard allowance above inflation over the next four years.
It believes that raising the standard allowance for everyone while reducing the health top-up will make returning to work more financially worthwhile and possible.
However, charities disagree.
Anela Anwar, chief executive of anti-poverty charity Z2K, said: “We all know that our broken disability benefits system needs reform.
“But these reckless plans, which official estimates show will plunge more than one million disabled people into poverty or even deeper into poverty, do not represent meaningful reform.
“Government suggestions that these cuts are about helping people into work are entirely disingenuous.
“Experts agree that only between 1% and 3% of those who will be hit by the cuts are expected to find work as a result.”
The government also plans to get rid of the Work Capability Assessment (WCA), which is used to decide if someone qualifies for Universal Credit health payments, at a later date.
Instead, the DWP will use the PIP assessment to decide if someone is eligible for these health payments.
The DWP aims to make this change by 2028.
What are Work Capability Assessments?
The DWP uses the Work Capability Assessment (WCA) to evaluate a claimant's ability to work when applying for Universal Credit due to a health condition or disability.
The WCA focuses on assessing functional limitations rather than specific medical diagnoses.
It considers both physical and mental health, awarding points based on how an individual’s condition impacts their ability to carry out daily activities.
After the assessment, claimants may be placed into one of two groups – Limited Capability for Work (LCW) or Limited Capability for Work and Work-Related Activity (LCWRA).
Claimants assigned to the LCW group are recognised as currently unfit for work but may be capable of returning to employment in the future with the right support and assistance.
Those in this group are required to engage in work-related activities, such as attending Jobcentre appointments or training courses.
Failure to comply with these requirements may result in sanctions, including a reduction or suspension of benefits.
Claimants are placed in the LCWRA group if their health condition or disability is considered so severe that they are not expected to be able to work or participate in any work-related activities in the foreseeable future.
Those in the LCWRA group receive an additional amount on top of their standard Universal Credit allowance currently worth £416.19 a month.