Last Updated: July 23, 2026
The Government has issued a new bill to reform Universal Credit (UC) and Personal Independence Payments (PIP). The bill will provide 13-weeks of additional financial security to existing claimants affected by changes to the PIP daily living component, including those who lose their eligibility to carers allowance and the carer’s element of Universal Credit.
The bill aims to provide transitional cover for 13 weeks which is three times more than the cover provided for the transition from Daily Living Allowance (DLA) to PIP.
Since the pandemic, the number of PIP awards has increased by more than double, from 13,000 a month to 34,000. On average that is roughly 1,000 people signing on to PIP every day. This surge has been driven largely by a substantial increase in the number of people who report anxiety and depression as their main condition. Prior to the pandemic, 2,500 people a month with these conditions were awarded PIP. In 2023, it increased to 8,200 a month.
Liz Kendall, Work and Pensions Secretary, said, ‘Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.
‘This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
‘This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.’
Under new legislation, individuals with the most severe and permanently disabling conditions will not be called to reassess and will be paid the higher rate of UC per week.
The Government has said that new legislature will be drawn up to ensure that those who try work will not immediately be lead to reassessment or award review. It says this should help break down the barriers to employment.
Reforms being delivered by the legislation being introduced on June 18th work with the £1 billion employment support package to support more people with health conditions back into work.
Alongside this, UC has been set to increase above inflation every year for the next four years. However, the bill also initiates a reduction in the rate of the health element of UC from April 2026. To support those affected by this change to the health element of UC, the Government will offer support through a Pathways to Work advisor.
Individuals affected by reforms to UC will be contacted and offered a conversation about their support needs, goals and aspirations, offered one-to-one follow-on support and given help to access additional work, health and skills support that can meet their needs.
The bill also introduces a new eligibility requirement for the daily living component of PIP. This requirement means that a minimum of four points must be scored on at least one daily living activity to be eligible for the daily living component.
Dr Rhidian Hughes, Chief Executive of the Voluntary Organisations Disability Group (VODG), said, ‘There is a great deal of concern about what the Universal Credit and Personal Independence Payment Bill means for people’s lives […]
‘Undoubtedly reform is needed to the welfare system. It is complex, frustrating and often works against people. There are many effective ways of supporting disabled people to enter and stay healthy in employment and training – as demonstrated by disability organisations with the VODG membership. But the policy narrative around welfare reform is too often focused on cuts. According to the Resolution Foundation proposals in the current Bill could see up to 1.2 million disabled people lose support, with many facing losses of £4,200 – £6,300 a year. […]
‘We urge MPs to work with disabled people, families and carers to put disabled people at the heart of this Bill as it makes its way through Parliament and remember the lives that will be directly impacted by this legislation.’
Joseph Brunwin, UK Policy and Public Affairs Manager at the Royal Collage of Occupational Therapists, said, ‘We recognise the Government’s intention to reform the welfare system, but we are concerned about proposed changes to Personal Independence Payment (PIP), particularly the requirement to score at least four point on a single daily living activity. PIP is not just financial support – it helps people manage their health, stay independent, and engage in everyday life, including work.
‘Our member see the real impact when this support is lost: reduced function, disrupted routines, and increased risk of declining health or unemployment. […]
‘We urge the Department for Work and Pensions to conduct a full, transparent review, focusing on how changes could affect people’s ability to function and participate in daily life.’
In other news, CQC appoints new Chief Inspector of Adult Social Care and Integrated Care
