From universal credit to PIP: All the benefit changes announced by Rishi Sunak

The Government has a “moral mission” to reform welfare and tackle the rising number of people out of work due to ill health, Rishi Sunak said as as he announced major changes to the system.

The PM used a speech at the Centre for Social Justice to set out his short and long term plans for reforming the welfare system and cutting the number of people off work.

He warned that the disability benefit bill would soar in the coming years without action, and said that it was only “fair” those who could work were made to do so.

But he also insisted the changes were not solely about cutting costs but improving people’s lives.

What are the changes announced?

Universal Credit

Those on Universal Credit who are not engaging in tying to find employment will see their benefits stopped entirely after 12 months.

The Government had previously said it would crack down on people not engaging in work coach services, but this announcement confirms they would have their claim closed and all benefits removed.

People working less than half a full-time week will also have to try and find extra work in return for claiming benefits.

The administrative earnings threshold, which determines how much someone must earn before they no longer have to seek more work hours under their benefits conditions.

This threshold will increase from £743 to £892 for an individual and £1189 to £1437 for couples. This will move more than 180k claimants into intensive work search group.

The Government will also speed up the process moving people from older so-called legacy benefits onto Universal Credit.

Disability and sickness benefits

The work capability assessment (WCA) process, which considers whether a person is fit for work or not, is being tightened with the aim of ultimately replacing it.

Mr Sunak confirmed a previously announced commitment that people with less severe conditions will be expected to look for work rather than being ruled out of having to apply for a job.

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The Government said it remains committed to scrapping the WCA entirely and replacing it with a “new personalised, tailored approach”.

It has previously stated that the WCA changes would apply to new claims only, with the reform coming in from 2025 onwards.

Other proposed changes include having so-called specialist work and health professionals charged with responsibility for issuing fit notes instead of GPs – in a bid to end the “sick note culture”, Mr Sunak said.

Evidence on this new approach is being sought from healthcare professionals, employers and people with lived experience.

The most surprising announcement to come out of the PM’s speech is that assessments and eligibility for personal independence payments (PIP) – which is a benefit for those in need of extra support due to a condition or disability, who may not necessarily be out of work – will be overhauled.

A green paper on this will be published in the coming weeks and will guide promised legislation that will be set out in the manifesto.

Fraud

Mr Sunak also set out plans for new legislation to prevent “fraudsters” exploiting the benefit system. A new fraud Bill will be prepared for the next parliament to treat benefit fraud the same as tax fraud.

It will include a new civil penalty to be applied to a wider set of fraudsters.

When will this happen?

Many of the larger announcements would not actually happen before the next election.

The acceleration of the rollout of Universal Credit will start this year and be completed by 2026, No10 said, adding that this would not require legislation.

Rule changes to increase the amount a person has to work will be implemented on 13 May. The Government is laying legislation in the House today in relation to that.

But the tougher rules which will see claims closed if people do not engage in looking for work will require new legislation which would be implemented in the next parliament, after the election.

Changes to WCA rules will come into effect next year. The reforms for PIP will be promised, in the form of new legislation, in the next parliament.

The Government has not specified when the changes to the fit note process would be implemented but a call for evidence is launching immediately.

Reforms due to take place “in the next parliament” will depend on either the Conservatives winning the next election or Labour agreeing to implement the same changes.