The UK Government has shelved sweeping disability and sickness benefit reforms until at least late 2026, adopting a controversial two-tier approach. Existing claimants will be shielded from cuts, while new claimants face tougher rules and lower payments starting next year. The shift follows a backbench revolt and direct intervention from Sir Keir Starmer.
The Department for Work and Pensions will not receive parliamentary time for further welfare reforms until next year at the earliest, according to Downing Street. This means millions of claimants face a prolonged wait for major changes to the benefits system.
Universal Credit changes from April
From April 2026, the Government will introduce confirmed changes to Universal Credit. The LCWRA top-up for new claimants qualifying after 6 April 2026 will drop from more than £430 a month to around £217. Existing LCWRA claimants remain protected, with their payments frozen or receiving slight inflation increases.
All Universal Credit claimants will benefit from a higher standard allowance, expected to be worth roughly £64 extra a month by 2030. The two-child limit in Universal Credit will be removed from April 2026, a policy originally introduced under the Conservatives.
PIP reforms frozen during review
Changes to Personal Independence Payment have been effectively frozen while the Timms Review runs its course. Sir Stephen Timms, Minister for Social Security and Disability, is leading the year-long review, which reports in autumn 2026.
No changes to PIP's eligibility criteria, descriptors, or points system will happen before the Timms Review concludes. The earliest new eligibility rules could apply is November 2026, and only for new claims. Existing PIP claimants are protected until at least 2027, pending legislation.
Any resulting changes would require legislation. Winter 2026 or early 2027 is the earliest realistic start date for implementation.
Why the delay happened
The delay stems from a rebellion by more than 40 Labour MPs last summer. The revolt forced ministers to abandon plans to make £5bn of savings from disability benefits. Those scrapped plans included tightening PIP eligibility and more aggressive cuts to sickness-related top-ups.
An unnamed minister told The Times: «Clearly any welfare reform is going to be very difficult with the backbenches, and the closer you get to a general election the less you want to do the difficult stuff.» Sir Keir Starmer subsequently approved a slower, review-led approach.
The King's Speech, due in May, will set the Government's agenda until mid-2027, effectively ruling out major new benefit legislation during that period.
Poverty reduction impact
The removal of the two-child limit is expected to lift around 450,000 children out of relative poverty. The Timms Review is examining whether PIP can become the "single gateway" for deciding health-related support in Universal Credit once the work capability assessment is scrapped by 2028-29.
The review includes public consultations and "lived experience" workshops scheduled for spring. Plans to replace PIP cash payments with vouchers have been scrapped.
Note: This article was created with Artificial Intelligence (AI).
