Green Paper published – £5 billion cuts proposed by scrapping the WCA and changed PIP assessment

WCA

The Work Capability Assessment (WCA) will be scrapped in 2028: “This will end the state categorising people into binary groups and labelling them as either ‘can or can’t work’.”

Instead, extra financial support for health conditions in UC will be assessed via a single assessment – the PIP assessment – and be based on the impact of disability on daily living, not on capacity to work.

 The Government says that “This change will be non-negotiable “We will implement this change via primary legislation. Further details will be published in the forthcoming White Paper. We are not consulting on this measure.”

Under this new system, financial support from PIP (non-means tested) and the health element of UC (means-tested) will both be non-work related.

However, the Government will also be legislating to guarantee that work in and of itself will not lead to someone being called for a reassessment or award review.

Universal Credit (UC):

The Health Element top-up will be denied to under-22s to prevent a direct path from education to benefits.

The top-up will also be cut for new claimants - from £97 to £50 per week by 2026/27 - a cut of more than £2,000 a year - and frozen for existing ones –

The top rate of Universal Credit for the most disabled will be cut (details to follow in Chancellor’s 26 March Spring Statement), but the standard rate will rise above inflation for the first time, reaching a £775 annual increase by 2029-30

 Personal Independence Payment (PIP)

The Green Paper proposes that PIP be more “focussed more on those with higher needs” but will remain non- means tested.

However, there will be a shift face to face assessment “while ensuring we continue to meet the needs of our people who are claiming, who may require a different method of assessment (e.g., due to the need for a reasonable adjustment).”

A new new PIP eligibility requirement is proposed to ensure that only those who score a minimum of 4 points in at least one daily living activity will be eligible for the daily living component of PIP. This requirement would need to be met in addition to the existing PIP eligibility criteria.

This means that people judged to have lower needs only in the daily living activities (scoring 3 or less for each activity) will no longer be eligible for the daily living component of PIP. People with a higher level of functional need in at least one activity will still receive PIP.

This change will be introduced through primary legislation. It will apply to new claims and for existing people who claim, future eligibility will be decided at their next award review. This change means that people could lose entitlement to the daily living element of PIP and potentially other entitlements linked to this award.

The Green Paper is consulting on whether those who lose entitlement need any support and what this support could look like – for example transitional protection.

The Government will also launch a process to review the PIP assessment: “This is a major undertaking which will take time and require extensive engagement, so any changes to the PIP assessment would only be introduced following the reforms set out in this Green Paper.

“To make sure we get this right, we will bring together a range of experts, stakeholders and people with lived experience to consider how best to do this and to start the process as part of preparing for a review.

A new contribution-based Unemployment Insurance Benefit

The Green Paper asks views on replacing New Style ESA and New Style JSA with one new Unemployment Insurance benefit. The rate of financial support would be set at the current higher rate of NS ESA. The benefit would not require a health assessment and would be based on an individual’s National Insurance record as is currently the case. Those with long term health conditions, would also be able to claim other relevant benefits where eligible.

DWP Safeguarding

The Government intends to introduce a new published ‘safeguarding approach’: “As a first step, we will conduct a thorough review of our current processes and work with stakeholders to identify areas for improvement. We will then develop and implement a new departmental wide approach to safeguarding.

“We will publish this new approach [in Autumn 2025] to provide clarity on what the department does. It will outline what improvements we will make, what the public can expect from our staff, and how the department works and interacts with local authorities, safeguarding agencies, the health service and other professionals. “

We will be publishing further information and views on the Green Paper’s proposed reforms and how they can be opposed in the coming days.

Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper is available at gov.uk

Mikey Erhardt, Policy Officer at DR UK said:

"The minister stood up today and made clear that, after months of rumours, media speculation and spin, these reforms are not about supporting Disabled people into work, but making brutal and reckless cuts of £5 billion. That is up from £3 billion just a few weeks ago.

“The rise in claims is driven by the increase in the retirement age, record NHS waiting lists, inadequate education and mental health support for young Disabled people and a complete failure to tackle the disability employment and pay gaps. Yet  the government has decided to create a rhetorical smokescreen around the depth of cuts it's going to make.

“The government intends to bar young Disabled people from receiving the Universal Credit health component until they are 22. That is alongside their promise to significantly increase assessments at scale without making the assessment process safer for those going through the system right now. These measures mark dangerous cuts for all Disabled people. Furthermore, altering the PIP award criteria will make it harder for those who need support to qualify.

“The minister’s assertion that 1000s more face-to-face assessments will be more accurate is laughable; we know that in-person assessment causes more stress and worry and often leads to inaccurate findings from assessors.

“Let's be clear: there is nothing ambitious about cutting support from those who need it and that’s what today’s announcements were really about. Rising claims for personal independence payment reflect not a problem with Disabled people but rather reflect successive government’s failure to do even the bare minimum to create a more equitable society.”