The Department for Work and Pensions (DWP) has laid out a significant series of changes to health and disability benefits, aiming to create a system it describes as 'more sustainable' for the future. The key updates were communicated via the department's latest Touchbase newsletter, outlining what claimants can expect in the coming months.
Key Changes to Assessments and Payments
Central to the new approach is an increase in face-to-face assessments for both Personal Independence Payment (PIP) and the Work Capability Assessment (WCA). The DWP states this measure is designed to 'ensure people are receiving the right support'. Alongside this, the Labour government has confirmed it will boost capacity for WCA reassessments.
In a move to reduce unnecessary bureaucracy, the DWP will also cut down on the number of PIP recipients called for award reviews when their functional ability has not improved. Furthermore, the department confirmed that most working-age and disability benefits will increase by 3.8% from April 2025.
Independent Review of PIP Assessments Launched
A major independent review of the PIP assessment process is now underway. On 1 September 2025, Sir Stephen Timms confirmed that the review group is separate from the disability advisory panel announced in the 'Get Britain Working' White Paper.
By 30 October 2025, the review's leadership was confirmed, with Sir Stephen co-chairing alongside Sharon Brennan and Dr Clenton Farquharson CBE. They will oversee a steering group, with the majority of its members being disabled people or representatives of disabled people's organisations.
'The steering group will not work alone; it will shape and oversee a programme of participation and engagement that brings together the full range of views and voices,' stated Sir Stephen. The review is expected to report to the Secretary of State for Work and Pensions by autumn 2026, with an interim update before then.
Reforms to the Motability Scheme
Significant changes have also been announced for the Motability Scheme, which helps disabled people lease vehicles using their mobility allowance. The reforms include:
- Ending VAT relief on top-up payments required for more expensive vehicles.
- Applying Insurance Premium Tax to new leases.
It is important to note that these tax changes will not impact vehicles substantially adapted for wheelchair users or existing leases. Motability will continue to provide vehicles at no extra cost up to the value of eligible benefits.
These combined reforms represent the most substantial shift in disability benefit administration in recent years, with the DWP emphasising a balance between sustainability, accurate support, and direct engagement with the disabled community.
