Welfare Revolution: Government Unveils Sweeping Reforms in Pursuit of £5 Billion Savings

A seismic shift is underway in Britain's social security landscape, as the government announces major reforms to the benefits system, aiming to slash £5 billion from the welfare bill. The changes, revealed in a highly anticipated statement, signal a fundamental re-evaluation of how support is provided to millions of citizens.

Here's a breakdown of the key reforms:

Overhauling Work Capability Assessments:

The government has announced that the Work Capability Assessment (WCA) will be scrapped by 2028. This assessment, which determines an individual's ability to work, has long been a source of controversy. In it's place, the government is placing a greater focus on helping people back into the work force.

Focus on Getting People Back to Work:

A central pillar of the reforms is a drive to get more people into employment. Initiatives include a "right to try" scheme, allowing those on disability benefits to attempt work without fear of immediate benefit loss.

Investment into employment support programs, with a focus on helping those with long-term health conditions or disabilities.

Changes to Personal Independence Payment (PIP):

Eligibility criteria for the Personal Independence Payment (PIP) will be reviewed, with a focus on ensuring support is targeted at those with the highest needs.

 PIP assessments will now be recorded to "establish trust".

Universal Credit Adjustments:

There are plans to rebalance payment levels within Universal Credit.

The standard universal credit allowance will be increased by £775 in 2029/30.

Financial Goals:

These reforms are projected to save the government £5 billion by 2030.

The Rationale Behind the Reforms:

The government argues that the current benefits system is in need of modernization, and that these changes will:

• Encourage and enable more people to enter the workforce.
• Ensure that support is directed towards those who need it most.
• Create a more sustainable welfare system for the future.

Reactions and Implications:

The announcement has ignited a fierce debate, with:

Supporters welcoming the emphasis on getting people back into work and streamlining the system.

Critics expressing concerns about the potential impact on vulnerable individuals, and worries that the changes will cause increased hardship.

Concerns have been raised by some that these changes will cause "immense suffering".

The implementation of these reforms will be closely watched, as their impact on individuals and the wider economy unfolds.

PIP freeze and vouchers ruled out

A leak of the government's plans to reform sickness and disability benefits also contained proposals to freeze PIP.

This would have essentially meant a real-terms cut to the benefit next year - with the most severly disabled people potentially impacted. But after a massive backlash from Labour MPs, the government appears to have dropped any plans to freeze the key disability benefit. Instead, it will rise with inflation next year.

In the Commons, Ms Kendall also dismissed controversial Tory-era proposals to replace PIP payments with vouchers. She also said PIP will not be means-tested because disabled people "disabled people deserve extra support".

PIP and benefit cuts - exactly what 6 key changes means for you

Liz Kendall has today unveiled a huge overhaul of sickness and disability benefits - with plans to slash around £5billion from the welfare bill.

The Work and Pensions Secretary confirmed an overhaul of Personal Independent Payments (PIP) and Universal Credit as she warned the social security system is "failing the very people it is supposed to help and holding our country back".

Many of the grim details - including the number of people impacted and the consequences on poverty levels - have been delayed. A promised impact assessment of the changes will instead be published next week alongside the Chancellor Rachel Reeves's Spring Statement.

But The Mirror looks at some of the key changes outlined in the Department for Work and Pensions (DWP) 84-page green paper published today.

Recent data shows a significant shift in the demographics of Personal Independence Payment (PIP) claimants in England and Wales. The proportion of claimants under 30 has risen from 14.5% in January 2020 to 16.4% in January 2025. Similarly, those aged 30-44 increased from 18.8% to 20.9% over the same period. In contrast, claimants aged 45-59 decreased from 36.3% to 30.1%, while those aged 60-74 saw a slight rise from 30.5% to 30.9%.

The announcement of these changes by Ms. Kendall has sparked strong criticism from Labour MPs, unions, and charities concerned about the impact on vulnerable individuals. The proposed £5 billion reduction in social security spending is the largest since 2015, drawing condemnation for its potential to harm sick and disabled people. Critics argue for more compassionate approaches to managing fiscal challenges rather than targeting social security benefits.

Downing Street defends the reforms, citing both moral and economic imperatives to reform Britain's benefits system. They emphasize the need to support vulnerable groups while encouraging economic participation among those capable.