Reforms to welfare system set to save £1.9 billion by the end of 2030/31

The changes will see the Government deliver on a commitment it made in the Pathways to Work Green Paper to increase face-to-face assessments after they were turned off in response to the COVID-19 pandemic, with contracts agreed by the previous government requiring 80% of assessments to be completed virtually.

The proportion of face-to-face assessments will be increased, with those for Personal Independence Payment (PIP) increasing from 6% in 2024 (57,000) to 30% of all assessments, and the Work Capability Assessment (WCA) from 12% in 2024 (74,000) to 30%.

The Government is delivering these changes and reforming the broken welfare system it inherited by extending the time between assessments to check if a claimant’s condition still qualifies them for PIP, freeing up health professionals to carry out more assessments face-to-face and deliver more WCA reassessments. Reassessments play an important role in taking account of how changes in health conditions and disabilities affect people over time.

In all, the measures are expected to save the UK taxpayer £1.9 billion by the end of 2030/31 and comes alongside employment support aimed at sick or disabled people including Connect to Work, and the redeployment of 1,000 work coaches.

Secretary of State for Work and Pensions Pat McFadden said:

We’re committed to reforming the welfare system we inherited, which for too long has written off millions as too sick to work.

That is why we are ramping up the number of assessments we do face-to-face and taking action to tackle the inherited backlog of people waiting for a Work Capability Assessment.

These reforms will allow us to save £1.9 billion, creating a welfare state that supports those who need it while helping people into work and delivering fairness to the taxpayer.

Currently, the time between award reviews can be as short as nine months and most people do not see a change in their award at their review.

That is to be extended for the majority of PIP claimants aged 25 and over to a minimum of three years for a new claim, rising to 5 years at their next review if they remain entitled.

These operational changes are separate to the Timms Review, which will look at the role of PIP, its assessment and the criteria in supporting disabled people to achieve better health, higher living standards and greater independence.

The changes will take effect from April 2026 – alongside changes to Universal Credit that narrows the gap between what people receive for being unemployed compared to long term sickness.

These measures come alongside our plan to Get Britain Working with the most ambitious employment reforms in a generation, as well as providing tailored support through the Connect to Work programme to help 300,000 sick or disabled people into work by the end of the parliament.

Additional information

• We will continue to ensure there are always adjustments for those who are unable to attend appointments face-to-face as a result of their disability or health condition, with providers offering home visits or alternative delivery channels where appropriate.

• If an individual’s condition deteriorates or improves, they should report a change of circumstances and ask for their PIP award to be reviewed.