The UK’s welfare system is getting a major overhaul in 2025, with Labour’s Department for Work and Pensions (DWP) unveiling bold reforms. The plan includes cuts to Personal Independence Payments (PIP) and Universal Credit (UC), aiming to save £6 billion by 2030 while pushing more people into work. These changes, announced by Work and Pensions Secretary Liz Kendall in March 2025, have sparked heated debates, with some praising the focus on jobs and others worried about the impact on vulnerable people. Here’s what the reforms mean, who’s affected, and what’s next.
Why Change the Welfare System?
Labour says the current welfare system is broken, costing too much and trapping people on benefits. The DWP reports that PIP claims have doubled since the pandemic, with 35,100 new working-age claimants monthly, and spending is set to hit £34 billion by 2030. Universal Credit’s health-related payments are also rising fast. The reforms aim to cut these costs by tightening rules and investing £1 billion to help disabled and long-term sick people find jobs. Kendall insists the changes will support those who can work while protecting those who can’t.
PIP Cuts: What’s Changing?
PIP, which helps over 3.6 million people with disabilities or health conditions, faces tougher rules. To get the daily living part of PIP, claimants now need a minimum score of four on one daily living activity, affecting about 800,000 people. Around 370,000 current PIP recipients will lose payments, and 430,000 future claimants will get less, with an average loss of £4,500 a year. Those with severe conditions won’t face reassessments, and a 13-week transition period will ease the loss of payments. Critics, including 42 Labour MPs, say these cuts cause “huge anxiety” for disabled people.
Universal Credit Changes Hit Hard
Universal Credit, a benefit for low-income or unemployed people, is also being reshaped. The basic UC payment will rise to £106 a week by 2029, helping 3.9 million families gain about £265 a year. But health-related UC payments for those unfit to work will be frozen until 2030, and new claimants will see their top-up drop from £97 to £50 a week by 2026. This affects 2.4 million people, with an average loss of £1,720 yearly. The DWP says these changes encourage work, but charities warn they could push 500,000 into hardship.
| Reform Details | Impact |
|---|---|
| PIP Eligibility | 800,000 lose or get less; £4,500 average loss yearly |
| UC Health Top-Up | Frozen for 2.4 million; new claimants get £50/week by 2026 |
| UC Basic Rate | £106/week by 2029; 3.9 million gain £265/year |
| Employment Support | £1 billion for job help programs |
How to Navigate the Changes
- Check your PIP or UC status on GOV.UK to see if you’re affected.
- Contact Citizens Advice for free help with appeals or applications.
- Avoid scams—never share personal info with unsolicited callers.
- Look into job support programs if you’re able to work.
The DWP plans to roll out these changes by November 2026, giving time to adjust. If you lose PIP, you’ll get payments for 13 weeks, and carer’s allowance continues during this period. Those with terminal illnesses will automatically get higher UC payments. To appeal cuts or apply for benefits, visit GOV.UK or call the DWP helpline. Disability groups urge people to seek advice early to protect their income.
A Mixed Reaction
The reforms have split opinions. Kendall says they’re about fairness, helping people into work while controlling costs. “Protecting those in need is a Labour principle,” she told Parliament. But posts on X show anger, with users calling the cuts a “ruthless attack” on the vulnerable. Some Labour MPs threaten to vote against the bill, and charities like Trussell Trust warn of rising food bank use. With £1 billion for job programs, the DWP hopes to hit an 80% employment rate, but the road ahead looks rocky as the vote nears.
