Reform UK has unveiled plans to abolish Personal Independence Payments (Pip) as part of a sweeping welfare reform package aimed at cutting £50bn from the UK's benefits bill. The proposals, which would impact nearly three million people, are set to be formally announced at a press conference tomorrow morning.
£22bn in savings from disability benefits
According to the party's Treasury spokesperson, Robert Jenrick, the reforms targeting the disability programme alone would yield £22bn in savings. Writing in the Sunday Telegraph, Jenrick described the current system as 'suicidal empathy' and warned of a 'moral and economic catastrophe' facing the country.
The £50bn target represents a reduction equivalent to more than a third of the annual state pension expenditure. Under the proposals, working-age individuals receiving Pip would see their payments either removed or modified, affecting 2.89 million people. BBC News reports that only the most 'severe, enduring and high-risk cases' would continue to receive cash support under a proposed replacement scheme called the Health Security Allowance.
New system and local authority responsibilities
Those with what Jenrick calls 'lower-level conditions' would no longer receive direct cash payments. Instead, their local authority would be responsible for providing necessary equipment, transport, or personal assistance. The health element of Universal Credit would also be scrapped alongside Pip.
Jenrick defended the changes, stating: 'Let me be very clear, we will never let down those who need it. In fact, these changes secure the system for those who deserve it for decades to come.'
Employer obligations and business impact
The reform package also includes measures requiring companies to pay for employees during their first two years of sick leave. Businesses with more than five employees would be mandated to take out insurance to cover these costs. Reform argues this would incentivise employers to adapt workplaces and facilitate employees' return to work. The party claims the change would be cost-neutral for businesses, as it would be offset by a reduction in employers' National Insurance contributions.
Labour has criticised the proposals as 'fantasy economics', accusing Reform of 'stripping support from disabled people and shifting costs onto employers'. A Labour spokesperson added: 'Labour is already reforming welfare: narrowing the gap between Universal Credit standard and health rates, restoring face-to-face assessments, and investing £3.5bn in employment support to end the culture of people being signed off and written off.'
Timms Review and next steps
An interim report from the Timms Review, which is examining the long-term future of Pip, concluded that the benefit is no longer fit for purpose. The full review, including recommendations, is due to be published in the autumn. Workshops involving disabled people and those with long-term health conditions are scheduled for September and October to help shape the recommendations before publication.
