The Government has introduced stricter eligibility criteria for those claiming Personal Independence Payment (PIP).
The changes make it harder for new applicants to qualify and for existing recipients to maintain their payments.
The Green Paper reforms come ahead of the Spring Statement which is set to see pre-election promises to limit tax rises and tightly control borrowing meet the reality of lower-than-expected growth and tax revenues.
Addressing the Commons this afternoon, Liz Kendall, the Pensions minsiter announced PIP will not be scrapped or means tested despite prior rumours. Alongside this, she announced a review of the PIP assessment process. Kendall said the government had to “make sure PIP is fit for purpose now, and in the future”.
The daily living component of PIP, which provides up to £105 per week, will see new eligibility criteria introduced, previously, individuals could qualify with a lower overall score spread across multiple activities. Kendall confirmed applicants for PIP will now need to score a minimum of four points in at least one activity to qualify for the daily living element.
She said: “We will legislate for a change in PIP so people will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP from November 2026.
“This will not affect the mobility component of PIP and only relates to the daily living element.”
This change means that those with lower levels of need across different activities may no longer be eligible for support.
The government has acknowledged that some current claimants will be affected and is exploring ways to offer transitional protection. A consultation is also underway on additional support measures.
She also explained the “complex” and “time-consuming” Work Capability Assessment (WCA) for Universal Credit is also set to be scrapped in 2028.
The WCA—a DWP process used to determine eligibility for certain benefits—will be scrapped by 2028, according to Work and Pensions Secretary Liz Kendall.
This proposal is intended to redirect resources towards the Youth Guarantee, focusing on getting young people into work or training.
She also announced a new “right to try” initiative, ensuring that claimants who attempt to work will not risk losing their benefits. Additionally, financial incentives to remain on welfare will be phased out.
A modest increase to the basic Universal Credit rate is expected for those actively seeking work
PA
From April next year, the government will “rebalance” Universal Credit payments, freezing the health top-up for existing claimants and reducing it for new claimants.
As a result, the standard Universal Credit allowance will increase by £775 per year by 2029-30. However, this will come with more frequent reviews to assess whether claimants still meet eligibility criteria.
The Government will consult on delaying the health top-up to Universal Credit for those under 22, with the savings redirected to work support and training opportunities.
Existing Universal Credit claimants who are assessed as having Limited Capability for Work and Work-Related Activity (LCWRA) before the changes and remain eligible after reassessment will have their health element protected at the current rate of £416.19 per month.
However, they will also benefit from an increase in the standard allowance. New claimants will receive a lower health element but a higher standard allowance compared to current rates.
The government is also proposing a new premium specifically for individuals with severe, lifelong conditions that prevent them from working.
The Government will also explore merging Jobseeker’s Allowance (JSA) and Employment Support Allowance (ESA) into a time-limited unemployment insurance scheme, which would offer higher benefit payments for a set period to those who have paid into the system.
PIP is available regardless of income, savings, or employment status, but the major changes could see around 1million people lose payments, particularly those with mental health conditions or difficulties with daily tasks like washing, eating, and dressing. The new eligibility criteria may also exclude individuals requiring hearing aids from receiving support.
PIP costs have surged from £15 billion before the pandemic to a projected £37 billion by the end of the decade, while the total bill for sickness and disability benefits is set to hit £100 billion.
Currently, 1.3 million people qualify for the maximum £9,500 per year due to conditions ranging from drug addiction and obesity to Long Covid
Who is eligible for PIP?
Households living with a long-term illness, disability, or mental health condition may be eligible for extra financial support through Personal Independence Payment (PIP).
The benefit, available to those aged 16 to 66 (state pension age), can provide up to £184.30 per week. To qualify, individuals must have had difficulty with daily tasks or mobility for at least three months, with the condition expected to last at least nine more months—unless diagnosed with a terminal illness and given less than 12 months to live.
PIP is not means-tested, meaning it can be claimed alongside Universal Credit and other benefits, including Limited Capability for Work and Work-Related Activity (LCWRA) payments.
The payment is divided into two parts depending on how a condition impacts daily life:
- Mobility support: £28.70 or £75.75 per week for those needing assistance getting around.
- Daily living support: £72.65 or £105.55 per week for those struggling with essential tasks like eating, dressing, or managing finances.
Claimants may qualify for one or both elements, with a maximum weekly payment of £184.30. PIP can be claimed alongside other benefits, except for the Armed Forces Independence Payment.