Government U-Turns on Key Disability Benefit Cuts After Backlash
On July 1st, the UK government made a big U-turn on its disability benefit reform plans, just hours before MPs voted. Sir Stephen Timms, the Minister for Social Security and Disability, announced that they will remove a controversial clause. This clause would have tightened eligibility for Personal Independence Payment (PIP).
The government says these adjustments show they are listening. But patient and disability groups aren’t convinced. They argue the changes just delay or change how cuts are made. They worry this strategy will push many vulnerable people into deeper poverty.
Sir Stephen Timms’s Announcement (July 1st):
- Removal of Controversial PIP Clause: The most impactful part of his announcement was the decision to remove Clause 5 from the Universal Credit and Personal Independence Payment Bill. This clause contained the highly contentious proposal to require new PIP claimants to score a minimum of 4 points in at least one daily living activity. This was in addition to the overall 8 points, to qualify for the daily living component.
- Delay of PIP Eligibility Changes: Timms stated that any future changes to PIP eligibility, activities, and descriptors would only occur after the conclusion of his wider review of the PIP assessment process. He emphasised that this “Timms Review” would be “co-produced” with disabled people and their organisations. He said it is not intended to save money, but rather to ensure the assessment is “fit for the future.”
- Protection for Existing Claimants: He reiterated that existing PIP claimants will largely remain on the current system. New eligibility rules would only applying to new claims from November 2026. This date is now effectively superseded by the review.
- Universal Credit Adjustments: Timms also confirmed adjustments to Universal Credit rates. He stated that the health element for existing claimants would mean that their income would be protected in real terms. This would be the same for some new claimants with severe conditions. He also said that the standard allowance of UC would rise above inflation for the next four years.
- “Right to Try”: The government is also pushing forward with a “Right to Try” guarantee. This will aim to give legal protection for disabled people to try work without fear of reassessment.
Remaining concerns:
- Creation of a “Two-Tier System”: Advocacy groups continue to highlight that the reforms, even with the adjustments, will create a “two-tier” or even “three-tier” benefit system. Future disabled people will likely face significantly reduced support compared to current claimants. This will lead to “new and cruel inequality” and a future of poverty and hardship.
- Impact on Universal Credit: The freezing and future reduction of the Universal Credit health element for many new claimants is a major point of contention. SMA UK and our partner disability-focused organisations argue that this fails to recognise the genuine extra costs associated with disability. It will push more disabled people into poverty. This will be especially those who rely on this support to live independently or even work.
- Lack of Genuine Consultation: There is a lack of genuine co-production and consultation with disabled people and their organisations. Reforms have been driven by cost-cutting rather than by a desire to build a supportive and enabling welfare system.
Read more about the planned benefit reforms, including a summary of SMA UK’s response to the government consultation here. National Strategies, Campaigns and Consultations – SMAUK
