Dwp boss warns welfare state will not survive if reforms not implemented

PLANNED CHANGES TO UNIVERSAL CREDIT WILL START IN APRIL WITH PIP REFORMS DUE FROM NOVEMBER 2026. 10:17, 22 May 2025 Work and Pensions Secretary Liz Kendall has insisted she will press ahead

with measures to cut the welfare bill amid pressure from Labour backbenchers on Sir Keir Starmer to change course over the squeeze on benefits, including Personal Independence Payment (PIP)

and Universal Credit. In a speech to the IPPR on Wednesday, Ms Kendall set out the case for reform, explaining that when the welfare state was created, the average life expectancy was 65,

and the “most common cause of illness and death was infectious diseases and accidents”. She added that the average life expectancy is around 80, with one in seven babies born today likely to

live to 100. Ms Kendall explained: “Back then, disability was the exception. Now, one in four of us self-reports as disabled. And one in three of us will have a long-term health condition.

But the welfare state has simply not kept pace with these changes.” READ MORE: Winter Fuel Payments of up to £300 set to return for ‘more pensioners’ - what we know so farREAD MORE:

Pensioners in Scotland to get winter heating payment of up to £305 by specific date this year She went on to explain how the current benefits system “forces too many sick and disabled people

into a binary choice of can or can’t work - when we know many people’s physical and mental health conditions fluctuate, and many sick and disabled people want to and need to work”. Ms

Kendall explained that the latest Department for Work and Pensions (DWP) figures show that the number of people on the health top-up of Universal Credit is set to rise by 50 per cent to 3

million by the end of the decade. While the number of people on PIP is set to more than double to 4.3 million. She added that there are now 1,000 new PIP awards every day, “equivalent of

adding a city the size of Leicester every single year”. The DWP boss continued: “This is not sustainable or fair - for the people who need support and for taxpayers. So unless we reform the

system to help those who can work to do so … Unless we get social security spending on a more sustainable footing… And unless we ensure public money is focused on those with the greatest

need and is spent in ways that have the best chance of improving people’s lives.” She added: “The risk is the welfare state won’t be there for people who really need it in future. That is

why we are grasping the nettle of welfare reform. “Not for the sake of it, but to ensure the welfare state lasts for generations to come.” Plans to reform the welfare system will save the UK

Government around £5 billion per year. Universal Credit changes are set to start in April with PIP eligibility changes coming into force in November 2026, subject to parliamentary approval.

Some 100 Labour MPs - more than a quarter of the party’s parliamentary numbers - are reported to have signed a letter urging ministers to scale back welfare cuts under consideration, while

charities have also warned about the impact the measures will have. Organisations representing disabled people said they are disappointed that the UK Government has decided to push ahead

with its welfare reform plans despite criticism. National disability charity Sense said the Labour Government’s reforms to save the system for the future presents a risk it “won’t be there

for disabled people who desperately need it today”. Tom Marsland, the charity’s head of policy, said the plans are “cruel and unfair” and urged a rethink. He added: “We agree that the

welfare system isn’t currently working for disabled people – but increasing the number of disabled people in poverty will never be the solution.” Citizens Advice accused the UK Government of

a “misguided dash for short-term savings” and said the reforms will “make problems harder and more expensive to solve in the long run”. ONLINE CONSULTATION The DWP has published the

‘Pathways to Work: Reforming Benefits and Support to Get Britain Working’ consultation online at GOV.UK. The consultation is seeking views on the approaches the UK Government should consider

around reform of the health and disability benefits system and employment support. The consultation on GOV.UK states: “This Green Paper is an important staging post on a journey of reform,

building on the vision and approach set out in the Get Britain Working White Paper in November 2024. It sets out our vision, strategy and proposals for change.” It continues: “We want to

improve and refine our plans by consulting on certain measures as described within this paper. We are committed to putting the views and voices of disabled people and people with health

conditions at the heart of everything we do.” WHO CAN COMPLETE THE CONSULTATION? The DWP is encouraging a “wide group” of people to share their views “in particular disabled people and

people with health conditions and disability organisations”. This consultation applies to England, Wales and Scotland. All the proposals apply in England, but it’s important to be aware that

the proposals will only apply to the UK Government’s areas of responsibility in England, Wales and Scotland. To complete the consultation, scroll to the bottom of the page here where it

says ‘Ways to respond’. The consultation will close on June 30, 2025. SUMMARY OF PROPOSED BENEFITS CHANGES UNIVERSAL CREDIT The latest statistics show there were 7.57 million people on

Universal Credit, a means-tested incapacity benefit, in Great Britain as of February. It is aimed at helping people on a low income or those who are out of work. The UK Government said it

will introduce an above-inflation rise to the standard Universal Credit allowance by 2029/30 - adding £775 in cash terms annually. But the health element allowance will be almost halved for

new claimants from April next year while those already claiming will have their amount frozen until 2029/2030. The Work Capability Assessment (WCA) is to be scrapped in 2028, having been

described by Liz Kendall as “complex, time consuming and often stressful for claimants”. The UK Government said it will legislate for a so-called “right to try”, which will allow people to

try work without the fear their benefits will automatically be put at risk. The Government said it will consult on delaying access to the Universal Credit health element until someone is

aged 22. The latest figures showed there were 109,436 people aged 16 to 21 on Universal Credit health in December 2024. PIP Nearly 3.7 million claimants in England and Wales were entitled to

PIP as of the end of January, the latest figures showed - up 71 per cent on the equivalent figure five years earlier when it stood at 2.14 million. The payment is aimed at helping with some

of the extra costs caused by long-term disability and ill health and is not dependent on whether someone is working or not. Some people will lose their PIP entitlement, the UK Government

said, as the process to qualify is tightened in an effort to focus the disability benefit on “those with higher needs”. The UK Government said it will bring in a new eligibility requirement

for a minimum score of at least four points regarding how much help the person needs with everyday tasks on the daily living element of the benefit. No change is being proposed for the

mobility element, which looks at how much help someone needs in getting around. The UK Government confirmed the change “means that people who only score the lowest points on each of the PIP

daily living activities will lose their entitlement in future”. The UK Government also committed to not putting Universal Credit claimants who have the most severe disabilities and health

conditions that will never improve through the ordeal of being reassessed for benefits “to give them the confidence and dignity they deserve”. However the UK Government said it plans to

increase the number of face-to-face assessments in PIP and under the current Work Capability Assessment in a bid to “give confidence to claimants and taxpayers that they’re being done

properly”. Article continues below The UK Government said it will also consult on raising the age at which people can claim PIP from 16 to 18. GET THE LATEST RECORD MONEY NEWS Join the

conversation on our Money Saving Scotland Facebook group for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates. Sign up to our

Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday - sign up here. You can also follow us on

X (formerly Twitter) @Recordmoney_ for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community.