Government’s welfare reform proposals subject of new Committee inquiry
3 April 2025
The cross-party Work and Pensions Committee has today launched its new inquiry on the Government’s welfare reform proposals, Pathways to Work.
The inquiry will examine the DWP’s planned changes to disability and health-related benefits, which were announced by the Work and Pensions Secretary last month and are contained in the Pathways to Work Green Paper.
The proposals centre on changes to both the eligibility criteria for and the reduced payment rates of benefits and include plans to abolish the Work Capability Assessment, meaning the new Personal Independence Payment (PIP) assessment would determine eligibility for PIP and the health element of Universal Credit. The changes in eligibility for PIP are estimated to affect between 800,000 and 1.2 million people currently receiving PIP.
Under the reformed system, to qualify for UC health, a person would have to be in receipt of the daily living component of PIP; but eligibility for the PIP component is being tightened: in future, only those who score at least four points in at least one of the daily living activities, 8 in total will qualify. The reductions in real terms support are estimated to affect 1.5 million existing claimants.
The Green Paper sets out proposals that the Secretary of State says will save £5 billion in 2029-30. The Government has also said that the reforms, which are backed by a £1 billion package of employment support by 2029, will enable more people with chronic long term health conditions, and/or who are disabled, to return to and stay in work.
The inquiry will examine the evidence around the impact of welfare changes on poverty and employment and how the changes might affect disabled people. It will also explore the link between health and worklessness.
Chair comment
Committee Chair Debbie Abrahams said:
“While the Chancellor undoubtedly must respond to financial challenges, there are legitimate concerns regarding the proposed changes to our social security system which would lead to a cut in support for more than three million sick and disabled people and their families, especially if these cuts happen before employment opportunities emerge. It is therefore vital that there is full examination of the evidence of the likely impacts this will have on poverty and employment, as well as the health of sick and disabled people. Our social security system is meant to provide a safety net to support people, so that they are protected from poverty. But we know that there are already 14.3 million people living in poverty, and half of them are sick or disabled people who are not properly supported by our benefits system. We must ensure that new social security policy addresses this.”
Further information
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