The Department for Work and Pensions (DWP) has unveiled a significant overhaul of the welfare system, with plans to reduce spending by almost £2 billion over the coming years. The Labour government's strategy centres on increasing the number of in-person health assessments for disability benefits, a move it says will ensure support goes to those who truly need it.
Major Shift to Face-to-Face Assessments
The core of the new policy is a substantial increase in face-to-face appointments for claimants. The proportion of Personal Independence Payment (PIP) assessments conducted in person will rise sharply from just 6% in 2024 to 30% of all reviews. Similarly, for Universal Credit claimants seeking the sickness top-up known as LCWRA (Limited Capability for Work and Work-Related Activity), face-to-face Work Capability Assessments (WCAs) will increase from 13% to 30%.
These in-person evaluations were largely halted during the COVID-19 pandemic and have not returned to previous levels. The government now states that ramping them up is essential to accurately determine eligibility for additional cash support, which can be as much as an extra £423 per month through Universal Credit.
Longer PIP Awards to Free Up Resources
To facilitate this shift, the DWP is changing the structure of PIP awards. For the majority of new claimants aged 25 and over, the initial award length will be extended to a minimum of three years. At their next review, if they remain eligible, this could be lengthened to five years.
This contrasts with the current system where reviews can occur as frequently as every nine months. The department argues that longer award periods will free up valuable time for healthcare professionals, allowing them to conduct more of the initial face-to-face assessments and tackle the inherited backlog of WCAs.
Financial Impact and Support Measures
The combined reforms are projected to save the taxpayer £1.9 billion by the end of the 2030/31 financial year. Alongside the assessment changes, the amount paid to new claimants of the Universal Credit sickness payment will be halved from April, unless they have a severe, lifelong condition that means they will never work. Existing recipients will continue to receive the higher amount.
The DWP emphasises that these changes are paired with enhanced employment support. Initiatives include the 'Connect to Work' programme, aiming to help 300,000 sick or disabled people find jobs by the end of the parliament, and the redeployment of 1,000 work coaches. These measures are separate from the ongoing Timms Review of PIP, which is due to report in Autumn 2026.
Secretary of State for Work and Pensions, Pat McFadden, said: "We're committed to reforming the welfare system we inherited, which for too long has written off millions as too sick to work. That is why we are ramping up the number of assessments we do face-to-face and taking action to tackle the inherited backlog. These reforms will allow us to save £1.9 billion, creating a welfare state that supports those who need it while helping people into work and delivering fairness to the taxpayer."
