04.04.25

The world of Welfare Benefits has been a hot topic in the news over the past few weeks, with the Secretary of State for Work and Pensions, Liz Kendall, speaking to Parliament on Tuesday 18^th March about the Government’s plans to overhaul and reform the current welfare benefits system. The Chancellor, Rachel Reeves, then announced further updates on these welfare benefit proposed reforms during her spring budget statement on Wednesday 26^th March.

In this piece we outline the key elements of the proposals and what they mean for parents and carers.

Details of the proposals

A Green Paper detailing all of the government’s proposals has been published here Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper – GOV.UK)

But what’s a Green Paper?

A Green Paper is a consultation document produced by the Government detailing policy changes they propose to make in the future. It does not set out decisions about policy that are final. It’s important to note this as it means that the proposed reforms included in this Green Paper are subject to change at a later date, after the government has received its consultation feedback.

We’ve summarised below what we know so far about the Government’s welfare benefit proposed reforms.

Universal Credit

• The standard allowance of Universal Credit is set to be increased to £106 per week (or £459.33 per month) by 2029/30.
• The work capability assessment will be scrapped in 2028.
• People on Universal Credit with the most severe disabilities/health conditions (and that won’t ever improve) will not need to have their health reassessed routinely by the DWP. This will be the case for new and existing claimants. There will also be an additional premium available to those with severe, lifelong conditions.
• From April 2026, for those who already receive the health-related top ups within their Universal Credit awards, the rate of these top ups will be frozen until 2029/2030.
• From April 2026, for new applicants, the rate of health-related top ups will be halved in comparison to existing claimants.
• For people receiving a health-related top up, there will an expectation to engage more with the DWP.
• A ‘right to try’ work initiative will be introduced so that claimants can try working without it triggering a reassessment of their Universal Credit.
• There will be a consultation on whether to limit access to the health-related top ups to over 22-year-olds only.
• An extra £1bn investment has been earmarked for employment support.

Personal Independence Payment (PIP)

• After 2028, when the work capability assessment has been scrapped, the PIP assessment will become the single assessment used for people to qualify for both financial support via PIP and extra financial support on the basis of health through Universal Credit.
• Eligibility criteria for the PIP daily living component to be narrowed from November 2026 (an Applicant will need to score 4 points on at least one of the activities to qualify)
• There have been no changes are proposed to the mobility component of PIP
• This Government will not proceed with the previous Government’s proposals relating to the introduction of vouchers instead of cash payments.
• PIP will continue to not be means-tested, and PIP rates will not be frozen.
• There will be a focus on getting face-to-face assessments happening again across the board to improve the quality of the assessment decision.
• There has been an indication that there will be further changes to the PIP assessment proposed later, but the Government intends to conduct a review involving experts and stakeholders before firming up any further proposals on this.
• There will be a consultation on whether to move the age at which children can transfer from DLA to PIP from 16 to 18.

Contribution-based benefits (new style Jobseekers Allowance (JSA) and new style Employment and Support Allowance (ESA))

• There will be a consultation on a major reform of contribution-based benefits.
• There will be the introduction of a new, time-limited unemployment insurance in 2028/29, paid at a higher rate compared to current contribution-based benefits, with claimants expected to actively seek work. This will replace new style JSA and new style ESA.

One other key change in the welfare benefit proposed reforms…

• The DWP’s safeguarding approach will be overhauled with a view to better supporting vulnerable people.

What can I do about these changes now?

Whilst these changes remain proposals and not confirmed, the only action we would suggest is that if you suspect you aren’t receiving the correct rate of any benefit, you seek advice and ask for your claim to be reviewed now, to make sure you are getting what you are entitled to.

In addition, if you believe you or someone you are supporting is entitled to a benefit and you haven’t submitted a claim yet, don’t delay in getting these claims submitted.

How Renaissance Legal can help you

Nicola Spruce and our specialist welfare benefits expert team can help you with everything benefits-related, including helping you to work out your benefit entitlements and with applications for benefits.

If you would like to speak to someone in the benefits team, then please contact us on 01273 610611 or email us to arrange a consultation about your personal circumstances.