Reform UK has proposed a major overhaul of the UK welfare system that would remove Personal Independence Payment, or PIP, and the health element of Universal Credit for working-age adults.
The party says the measures could reduce welfare spending by more than £50 billion and affect the payments of millions of people. However, these are political proposals rather than current DWP rules, and the details would need to go through the political and legislative process before any changes could take effect.
The proposals have prompted criticism from Labour and the Conservatives, particularly over the potential effect on disabled people and people with health conditions.
Proposal
Under the proposed Reform UK plan, PIP and the health element of Universal Credit would be abolished for working-age adults.
The party says the existing system has seen a substantial increase in the number of people receiving sickness and disability-related benefits. Reform Treasury spokesman Robert Jenrick has argued that the increase cannot be explained solely by a rise in severe physical illnesses.
The proposed changes would therefore move away from the current structure and introduce a different approach to disability support.
Allowance
Reform has proposed creating a new Health Security Allowance for people described as being “gravely ill and severely challenged.”
The proposal would provide cash support to people with the most serious health conditions. However, people with lower-level conditions would face a different system.
Under the plans, some existing cash payments would be replaced by disability support accounts administered by local councils and mayors.
These accounts could potentially be used for expenses such as specialist equipment, home adaptations, transportation, and personal assistance.
The proposal would therefore change not only who receives support but also how some disability-related assistance is provided.
Reassessments
Existing claimants would not necessarily lose their benefits immediately under the proposed system.
Reform says existing recipients would be reassessed over a period of three to four years.
According to figures cited by the party, around 2.16 million people would retain their current cash entitlement in full, while approximately 2.89 million could have their entitlement modified or withdrawn.
These figures are Reform’s estimates and should not be interpreted as confirmed future DWP payment changes.
For current claimants, the distinction is important. PIP, Universal Credit, and other disability-related benefits remain governed by existing rules unless and until Parliament approves and implements new legislation.
Savings
Reform estimates that its wider welfare proposals could save more than £50 billion.
The party says around £22 billion of those savings would come from changes to disability benefits.
The proposed savings would represent a substantial reduction in welfare spending. Reform has presented the package as a major restructuring of the welfare state and says it would be significantly larger than savings previously proposed by the Conservatives.
However, the size of the projected savings is one of the areas attracting criticism from political opponents.
Work
The proposals would also seek to change how employers and the welfare system deal with long-term sickness absence.
One proposal would require employers to provide what Reform describes as “return to work cover.” This would help fund the costs associated with employees returning to work after being signed off sick.
The party argues that giving employers greater financial responsibility would create an incentive to help employees return to employment where possible.
Under the proposal, people who remained out of work after two years would face a single in-person assessment.
The stated aim would be to establish whether an individual continued to qualify for state support and to identify claims Reform believes should not continue.
Opposition
The proposals have faced criticism from other political parties.
Shadow work and pensions secretary Helen Whately accused Reform of lacking a consistent position on welfare reform and questioned whether its proposals would produce the savings claimed.
Labour also criticised the plan, describing the £50 billion savings estimate as unrealistic and arguing that costs could instead be shifted toward employers.
The competing positions reflect a wider debate over how the UK should balance welfare spending with support for people who have disabilities, long-term illnesses, or difficulties remaining in work.
Impact
The potential impact would depend heavily on the final design of any legislation.
PIP currently provides financial support to eligible people with long-term physical or mental health conditions or disabilities. Universal Credit can also include additional support for people whose health affects their ability to work.
Replacing those systems would therefore represent a significant change for many households.
At this stage, people receiving PIP or the health element of Universal Credit should not assume that their payments are being stopped. The Reform UK proposals are not current DWP policy.
Any future change would require further political decisions, detailed rules, and potentially legislation before it could alter existing benefit entitlements.
Outlook
Reform UK’s proposed welfare changes would represent a significant shift in how disability and sickness support is delivered in the UK. The party says its plan would reduce spending while directing more resources toward people with the most serious conditions and encouraging more people to return to work.
Critics argue that the proposed savings may be unrealistic and could place additional pressure on disabled people and employers.
For current PIP and Universal Credit recipients, the key point is that these proposals do not currently change existing payments. Until any new policy is formally approved and implemented, benefit recipients should continue to follow the rules and payment arrangements set by the DWP.
FAQs
Would Reform abolish PIP?
Yes, Reform UK has proposed abolishing PIP for working-age adults.
Would Universal Credit change?
The plan would abolish its health element for working-age adults.
Would current claimants lose benefits immediately?
No. The proposal suggests reassessments would take three to four years.
What is the Health Security Allowance?
It is a proposed benefit for people with severe health conditions.
Are these DWP rules now?
No. These are proposed reforms, not current DWP benefit rules.
