Up to 1.2 million disabled people in the UK could lose thousands of pounds under a major welfare overhaul, experts warn.
Campaigners fear the reforms will worsen the nation’s mental health crisis and push more children into poverty.
Work and Pensions Secretary Liz Kendall outlined the government’s long-awaited changes to the benefits system, aiming to encourage more people into work while saving £5 billion.
However, with over a million people expected to see their incomes reduced, the Labour government faces mounting opposition, with up to 30 MPs preparing to vote against the plans.
Kendall told the Commons: We believe that unleashing the talents of the British people is the key to our future success. But the social security system that we inherited from the Conservatives is failing the very people that it is supposed to help and is holding our country back.”
Her proposals mark the most significant shake-up of the UK’s welfare system since Universal Credit was introduced over a decade ago. The reforms come as Britain struggles to reduce the number of people claiming long-term sickness benefits—a challenge other European countries have managed to tackle post-pandemic.
One of the most controversial measures includes scrapping higher incapacity payments for those deemed unable to work, in an effort to encourage more people to seek employment.
A new “Right to Work” scheme will also allow incapacity benefit claimants to try working without immediately losing their entitlements.
Additionally, people under 22 will no longer qualify for the health-related Universal Credit top-up. The government says the savings will be reinvested in work and training schemes to help young people enter employment.
The most financially significant change involves tighter restrictions on Personal Independence Payments (PIP), which are designed to help disabled people manage daily life. Under the new rules, those who cannot cook a meal but can use a microwave would no longer qualify for support unless they have additional needs.
Similarly, people needing help washing their hair or lower body may not meet the threshold for PIP, which currently provides up to £185 per week.
The government has not yet detailed exactly where the £5 billion in savings will come from, but officials suggest most will be from reduced PIP spending.
The Resolution Foundation estimates that between 800,000 and 1.2 million people will lose between £4,200 and £6,300 per year by 2029-30.
Senior economist Louise Murphy warned, “Around 1 million people are potentially at risk of losing support from tighter restrictions on Pip, while young people and those who fall ill in the future will lose support from a huge scaling back of incapacity benefits.
Critics argue the reforms prioritise short-term budget savings over meaningful, long-term welfare reform. Campaigners warn that cutting disability support could push millions of low-income households into financial hardship, at a time when the cost of living remains high.
While Labour MPs have largely supported Kendall’s efforts to reform the welfare system, some have voiced strong opposition. Debbie Abrahams, chair of the Commons Work and Pensions Committee, cautioned against “balancing the books on the backs of sick and disabled people.”
Concerns are also growing within the party that the reforms could spark Labour’s biggest internal rebellion yet, with dozens of MPs expected to challenge the plans in an upcoming vote.
With Chancellor Rachel Reeves set to announce further details in her Spring Statement, disabled people, charities, and campaigners are anxiously waiting to see how deep the cuts will go—and how they will affect some of the most vulnerable in society.
