All the PIP and Universal Credit changes in full – including decision on vouchers

The measures are expected to save more than £5billion-a-year in 2029/30, with the bulk of this saving expected to come from changes to PIP

This week saw major changes put forward for both Personal Independence Payments (PIP) and Universal Credit – but how exactly could this major overhaul impact you? The measures are expected to save more than £5billion-a-year in 2029/30, with the bulk of this saving expected to come from changes to PIP.

But the Resolution Foundation think tank estimates the tightening of PIP eligibility would mean between 800,000 and 1.2 million people would lose between £4,200 and £6,300 a year by the end of the decade. PIP is a disability benefit that is awarded to people with a physical or mental health condition that need extra help with daily tasks.

Almost 3.7 million people claim PIP in England, Wales and Northern Ireland. In Scotland, PIP has been replaced by Adult Disability Payment. Meanwhile, there are also changes in the pipeline for Universal Credit, which is a benefit payment for people on a low income or out of work. Universal Credit is currently paid to 7.5million people. Here is how the changes could impact you.

Change to points system

Under current rules, you need between eight and 11 points to get the standard rate of the daily living part of PIP. For the higher rate, you need 12 points or more. But from November 2026, you would need a minimum of four points in at least one activity to get the daily living part of PIP. There will be no change to the eligibility criteria for the mobility part of PIP.

No reassessments for most severe conditions

PIP is currently awarded for a fixed period of time, normally between nine months and ten years. There will be more frequent reassessments for many PIP claimants, although those with the most severe conditions will no longer face reassessments under the plans.

More face-to-face appointments

The majority of assessments for PIP will also be conducted face-to-face going forward, rather than over the phone or through video, although “reasonable adjustments” will still be made for people who cannot attend a face-to-face assessment. The number of assessments completed over the phone or through video has risen over the last few years since the COVID-19 pandemic.

Work capability assessment scrapped

The Work Capability Assessment (WCA) for Universal Credit will be scrapped in 2028 under the proposals. This is a process that is used to determine if someone is able to work when applying for Universal Credit. Any health support included in a Universal Credit claim will instead be determined through the PIP assessment.

Universal Credit health element halved for new claimants

The Universal Credit health element will be frozen at £97 a week from April next year, until 2029/30. The amount will be reduced to £50 a week in 2026/27 for new claimants. Those with the most severe, life-long health conditions will see their incomes protected through an additional premium.

Universal Credit health element ban for under-22s

The proposals also include plans to stop under-22s from claiming the the health element of Universal Credit. To be eligible for the Universal Credit health element, you would need to be over the age of 22, getting the Universal Credit standard allowance and any element of PIP.

Universal Credit standard allowance rising

There are plans to bring in a “permanent, above-inflation rise” to the standard allowance of Universal Credit. The Government says this equates to an annual increase of £775 in cash terms by 2029/30. The standard allowance is the basic amount you get in Universal Credit before any additional elements or deductions are taken into account.

PIP won’t be means-tested

There are no plans to make PIP means-tested. This means it will continue to be based on how your health condition impacts your life – not by your income, if you’re in employment, or if you have savings. PIP can be claimed in you are working and if you claim other benefits.

PIP payments won’t be frozen

PIP also won’t be frozen at its current rates. It had previously been reported that the Government was considering freezing PIP payment rates for one year. However, it reportedly backtracked on these plans following strong opposition from some Labour MPs.

PIP payments won’t be replaced by vouchers

The previous Government had suggested PIP payments could be replaced by vouchers in the future. However, it has now been confirmed that Labour will not be moving ahead with this idea. The idea of replacing cash payments with vouchers that could go towards equipment, aids or services was initially put forward by the previous Government in a consultation paper last year.