Labour's benefits crackdown: From PIP to Universal Credit, what does it mean for you?

18 March 2025, 14:28

Labour has unveiled a major shake-up to the welfare system as it scrambles to get millions of people back in work - but what will it mean for you?

Andrew Marr analyses the most ‘contentious’ part of Liz Kendall’s welfare cuts

Work and Pensions Secretary Liz Kendall has claimed her sweeping reforms could shave £5billion of the welfare bill before the end of 2030 as she vowed to fix the "broken benefits system".

It comes as 2.8 million out out of work due to long-term sickness and the number of people claiming disability benefits expected to double. Meanwhile, one in every 10 working-age people in Britain is now claiming at least one type of health or disability benefits.

Labour claims its new changes will end the sticking plaster approach' of previous governments amid to stop the country's productivity from plummeting. Here's what they are.

Harder to claim disability benefits

Labour is cutting the number of people eligible to receive disability payments.

Changes Personal Independence Payment (PIP) - the main main disability benefit - will narrow the requirements for claimants.

People will need to score a minimum of four points in one category to qualify for the daily living element of PIP. It will not affect the mobility component of this benefit payment. It means claimants will be required to show greater difficulty with everyday activities.

It comes as the number of people claiming personal independence payments is set to double this decade from two to 4.3 million.

Young people banned from claiming health disability benefits

Those aged under 22 will no longer be able to claim the incapacity benefit top up to universal credit.

There are currently 700,000 more incapacity benefit claimants than before Covid. Claimants are projected to exceed four million in just over two years.

Universal credit rising by £775

The Government is raising the basic level of Universal Credit - the overall benefits system that everyone gets - to £416/month, or £775 with housing.

Ms Kendall announced that Labour will scrap the “time-consuming” work capability assessment (WCA) for universal credit in 2028, which determines whether someone can work or not.

Universal credit claimants with severe, lifelong disabilities will not face benefits reassessments.

Right to work - Those signed off as sick can try out a new job without having benefits cut

Ms Kendall also confirmed the government will legislate for a “right to try”.

This aimed at offering people claiming sickness benefits the chance to try out a new job, without immediately having their benefits cut

She said: "We will do more by legislating for a right to try, guaranteeing that work, in and of itself, will never lead to a benefit reassessment, giving people the confidence to take the plunge and try work without the fear this will put their benefits at risk."

New assessments for those on incapacity benefits

Labour is reintroducing reassessments for people on incapacity benefits who have the capability to work.

There are reportedly 200, 000 people on incapacity and disability who benefits could work now, with the right support and in the right job.