PIP key changes as Labour slashes £5billion off welfare budget

March 19, 2025

Major Overhaul of Welfare System: Key Reforms to Disability Benefit Announced

A major overhaul of the welfare system is set to impact over 3.6 million people across Britain, with significant reforms to the Personal Independence Payment (PIP) announced today by the Government.

Work and Pensions Secretary, Liz Kendall, revealed that Ministers will introduce new legislation to change the assessment process for PIP, aimed at improving support for disabled individuals in England, Wales, and Northern Ireland.

PIP is designed to help people with disabilities manage the extra costs associated with their conditions, and these reforms are expected to bring important changes to the way the benefit is assessed.

What is PIP?

Personal Independence Payment (PIP) is a tax-free benefit designed to support people with long-term physical or mental health conditions, or disabilities, by helping cover the additional costs of living with those conditions.

PIP is currently received by 3.6 million individuals across England, Wales, and Northern Ireland. In Scotland, a similar benefit known as the Adult Disability Payment is available.

Who Can Claim PIP?

PIP is available to individuals who have a long-term physical or mental health condition or disability that makes it difficult to perform everyday tasks or get around.

Importantly, PIP is not means-tested, meaning you can receive the benefit even if you’re working, have savings, or are already receiving other forms of financial assistance.

What’s Changing with PIP?

In today's announcement, Liz Kendall confirmed that the Government will legislate for a revised PIP assessment process. Starting in November 2026, claimants will need to score at least four points in one of the daily living activities to qualify for the daily living component of the benefit.

Kendall emphasized that consultations will be held with disabled individuals and advocacy organizations to ensure the changes are effective and meet the needs of claimants both now and in the future.

However, she also reassured the public that, contrary to previous rumors, the Government will not freeze PIP rates, providing reassurance for those reliant on this vital support.