Welfare Reform Changes

March 27th, 2025

What the latest welfare reforms mean for carers

The government has announced changes to disability and health-related benefits, including stricter Personal Independence Payment (PIP) assessments, the removal of the Work Capability Assessment, and adjustments to Universal Credit for people with limited capability for work.

While these changes won’t take effect immediately, they may impact carers and the people they support in the years to come. We know that navigating the benefits system can be complex and stressful, especially when reforms bring uncertainty. That’s why we’ve summarised the key changes and what they could mean for you.

Stricter tests for Personal Independence Payment (PIP)

Please note there will be no immediate changes to PIP.  The changes will apply to new claims and award reviews from November 2026.

For example, if you are already getting PIP now and could be affected by the changes from November 2026, the changes will only apply at your next award review.  Although, there will be more face-to-face assessments, those with most severe conditions will not face reassessments and reviews under the proposed changes.

Work capability assessment to be scrapped

The work capability assessment that determines who is eligible for limited capability for work will be scrapped in 2028, under the proposals.

Instead, people applying for health-related financial support and disability benefits will only face one assessment, based on the current PIP system.

Limited Capability for Work under universal credit to be reduced for new claimants but Standard Allowance will be increased

Limited Capability for Work under Universal Credit will be frozen in cash terms for existing claimants at £97 per week from April 2025 – this means they will not be increased in line with inflation until 2029/30. However, Universal Credit’s Standard Allowance will be increased for all claimants including those who are looking for work.

The government says this will help tackle the “perverse incentives” in the system that keep people on benefits. Claimants will have also the right to try for work without losing their benefits.

Those receiving the new reduced Universal Credit Limited Capability for Work after April 2026, who have the most severe, life-long health conditions, who have no prospect of improvement and will never be able to work, will see their incomes protected through an additional premium. It also means those in that group will not be reassessed in the future.

Reduced Universal Credit’s Limited Capability for Work under 22 years old.

Those aged under 22 will no longer be able to claim the limited capability for work element top-up to Universal Credit under these proposals.

The government says any savings generated from the delay would be reinvested into work support and training opportunities for this age group.

The Government is also consulting on raising the age at which young people move from Disability Living Allowance for children to PIP from 16 to 18. The idea is that young people will have work and training “rather than a pathway to economic inactivity

We Care Together

At Tower Hamlets Carers Centre, we’re here to support you through these changes. Whether you need advice, help with applications, or just someone to talk to, we’re here to help.

Call 020 7790 1765

Email enquiries@ccth.org.uk

Or pop in to see us at 21 Brayford Square, London, E1 0SG

Caring for someone is an important job, and you deserve support too.