The UK Government has unveiled a bold new welfare reform package aimed at fixing what it calls a “broken benefits system.” The reforms include scrapping the Work Capability Assessment (WCA), protecting disabled people who cannot work, and offering a Right to Try guarantee for those who want to explore employment without losing their benefits.
These changes are part of the government’s Plan for Change, designed to unlock job opportunities, reduce economic inactivity, and ensure long-term sustainability of the welfare system.
Why Are These Reforms Needed?
Over 2.8 million people are currently out of work due to long-term illness, and the number of Personal Independence Payment (PIP) claims is rising rapidly—especially among young people. Without intervention, PIP claimants are expected to more than double from 2 million in 2021 to 4.3 million by 2029, costing £34.1 billion annually.
The government says the current system pushes people into long-term dependency and does not offer enough flexibility or support for those who can and want to work.
What Are the Key Welfare Reforms Announced?
1. Scrapping the Work Capability Assessment (WCA)
The outdated WCA, which determines whether someone is fit for work, will be replaced. The new system will focus on what people can do, not what they can’t, removing the harsh label of “fit or unfit for work.”
2. Introducing the Right to Try Guarantee
Anyone trying work will be protected from immediate benefit reassessments. This gives people the freedom to explore employment without risking their financial support.
3. Ending Reassessments for People with Lifelong or Severe Disabilities
Those who will never be able to work due to serious conditions will no longer face repeated assessments, allowing them to live with dignity and stability.
4. £1 Billion Investment in Employment Support
The government is investing a record £1 billion per year to provide tailored support, including:
- One-to-one conversations for people on health benefits
- Youth-focused training and job support under the Youth Guarantee
- Access to Work reforms for adjustments like aids and assistive technology
5. Changes to PIP Eligibility
PIP will be focused on people with higher support needs, requiring at least 4 points in daily living activities to qualify for the daily living component.
6. Universal Credit Rebalancing
The Standard Allowance in Universal Credit will be increased above inflation by 2029/30, adding £775 per year to better reflect cost of living and reduce the financial gap between those with and without health elements.
Supporting Young People and Future Generations
Under the reforms:
- Access to the health element of Universal Credit will be delayed until age 22
- The savings will be reinvested into youth employment and training support
This aims to prevent young people from being trapped in a lifetime of benefits dependency.
Working Across the UK
While social security is devolved in Scotland and Northern Ireland, the UK Government plans to:
- Respect devolved powers
- Work jointly with the Scottish and Welsh Governments
- Consult with all regions to ensure smooth implementation of the reforms
Long-Term Impact and Savings
These reforms are expected to save £5 billion by 2029–30, while still protecting those most in need. The government has promised that full costings will be presented in the Spring Statement.
This is the biggest overhaul of the UK welfare system in a generation. By removing unnecessary reassessments, investing in personalised job support, and allowing people to try work without fear, the government hopes to reduce benefit dependency and empower more people to live independent, financially secure lives.
At the heart of this reform is a simple promise: everyone should have a fair chance to work, and those who truly cannot will always be protected.
FAQ’s
What is the Right to Try Guarantee?
The Right to Try Guarantee allows disabled people and those with health conditions to try working without the risk of immediate reassessment or losing their benefits.
Why is the Work Capability Assessment being scrapped?
The government says the WCA is outdated and pushes people into long-term dependency. It will be replaced with a new assessment focused on daily living impact, not work capacity.
Who will benefit from the new welfare reforms?
Disabled individuals, people with long-term health conditions, and young people seeking work will benefit from better support, protection from reassessments, and tailored job help.
What changes are being made to PIP eligibility?
To receive the daily living element of PIP, claimants must now score at least 4 points on one of the daily living activities, in addition to existing criteria.
How much will Universal Credit increase?
The Universal Credit standard allowance will rise by £775 annually by 2029/30, helping reduce financial gaps and ensuring fairer support.
