Understanding the Upcoming Reforms to the Welfare and Benefits System

The UK Government's recent announcement on welfare system reforms has signalled significant changes. Following the Work and Pensions Secretary Liz Kendall's announcements to the House of Commons last week, and Chancellor Rachel Reeves' Spring Statement, proposed reforms include modifications to Universal Credit, adjustments to disability benefits, and a restructuring of the job support system. These reforms are set to impact the lives of millions of benefit recipients across the country.

What are the changes?

After much speculation, the UK Government released its ‘Pathways to Work’ Green Paper last week, in which the Department for Work and Pensions put forward significant changes including cutting Universal Credit (UC) by 50%, scrapping the Work Capability Assessment test (WCA), and introducing a more stringent set of criteria for those claiming Personal Independent Payments (PIP). So, what exactly is the government proposing?

Work Capability Assessment 

• From 2028, the WCA will be scrapped.
• The Government is also looking to create a new ‘Unemployment Insurance’ benefit which will combine Jobseeker’s Allowance and the Employment and Support Allowance. 

PIP

• From November 2026, there will be stricter qualification tests for PIP meaning that there will be more frequent face-to-face assessments, however those with severe long-term conditions will be exempt from undergoing reassessments.
• There will be a change to the current ‘points’ system. 

Universal Credit

• Those aged under 22 are unable to claim UC.
• The health element of UC will be frozen for existing claimants, with a fixed payment at £97 until 2029/2030, those with new claims will have this reduced to £50 in 2026/2027 and then frozen until 2029/20230.
• The standard allowance will rise from £92 a week in 2025/2026 to £106 a week by 2029/2030.

This will certainly change the eligibility of, and financial support available to, many individuals currently entitled to PIP and could potentially lead to individuals with severe medical conditions no longer being eligible for PIP or the health element of Universal Credit.

How will this affect those providing legal services?

Whilst these proposals are still in the green paper form, the changes are likely to affect not only those directly reliant on these benefits but also the wider network of legal support services, which developed following the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO).  LASPO made severe cuts to the legal aid available in areas including welfare benefits, such that a large proportion of these individuals do not have access to legal services and representation to appeal unfair disability benefit decisions. Frontline legal charities, often supported by pro bono legal services, will be preparing for an influx of individuals seeking assistance, as changes in status and questions around the application of the new rules will likely lead to an increased number of appeals. This anticipated surge is expected to create a backlog, putting additional pressure on already stretched resources. 

Joining forces on disability appeals: Charles Russell Speechlys and Z2K

Since 2019 we have worked with frontline anti-poverty charity (and Charles Russell Speechlys Foundation charity partner) Zacchaeus 2000 Trust (known as Z2K). Z2K works with pro bono lawyers to provide free representation to individuals that have had their welfare benefits reduced or removed altogether. Pro bono work done by our volunteers on these disability benefit appeals has secured awards totalling over £750,000 in wrongly withheld benefits and back payments for 25 clients to date.