Update: Cuts to Welfare Benefits

17^th July 2025 

Update on proposed cuts to welfare benefits

The Universal Credit Bill (formerly Universal Credit and Personal Independence Payment Bill) passed committee stage and its third reading in the House of Commons on Wednesday 9^th July; it will now become law.

This Bill previously proposed worrying changes to PIP and Universal Credit, including making PIP harder to get for new claimants and harder to keep for existing ones with an added ‘4-point rule’. It would also have seen the health element of Universal Credit cut in half for new claimants and frozen for existing ones.

These changes would have seen hundreds of thousands of people pushed into poverty (or further into poverty) and removed much needed support for many. These changes would also have had a domino effect. It would put peoples’ housing at risk as they would be subject to the benefit cap on losing their PIP. It would take support from carers, who would lose eligibility to carer’s allowance or the carer’s element of Universal Credit, as well as many other forms of support that claiming PIP grants access to.

Many charities and organisations who support Disabled people, including Hear Us, as well as many Disabled people, carers and allies, were rightly concerned by the government’s proposals. We collectively campaigned against the proposed changes to social security (benefits) with marches, mass lobbies, petitions, and by contacting our MPs and relevant Ministers.

Thanks to these bold and brave people who made sure their voices were heard, the organisations who stood with them and the MPs who listened, the government were forced to make many concessions and amendments, including:

Removing Personal Independence Payment from the title of the bill

The removal of the ‘4-point rule’ (clause 5) relating to PIP eligibility and the promise that no changes would be made to PIP before the conclusion of the Timms Review. This is a review of the PIP assessment led by the Minister for Social Security and Disability, Sir Stephen Timms, co-produced with Disabled people and the organisations that represent them. This review is expected to conclude in the autumn of 2026.

The Universal Credit health element is to increase in line with inflation for existing claimants, those who meet the severe conditions criteria, or are terminally ill.

Budgeting an additional £300 million for employment support. This is on top of the £1 billion already promised.

We share the disappointment of many that the Universal Credit bill has now passed which will mean that from April 2026 the health element of Universal credit will be cut in half and frozen for new claimants (unless they meet the severe conditions criteria). It is still predicted that over 100,000 people will be pushed further below the poverty line.

Nevertheless, the many concessions and amendments that the government were forced to make following tireless campaigning show the power of our voices! We will continue to campaign for a social security system that is fairer for Disabled people, and one that benefits our society as a whole, rather than allowing the government to cut costs at our expense. We will continue to support the Campaign for Disability Justice and other local and national campaigns which give our members and other Disabled people a voice.

Prioritising improvements in accessibility to education, healthcare, and public services would produce a more fulfilled and functional society for everyone. Hear Us, alongside many other organisations, will continue to fight and campaign to ensure Disabled peoples’ voices are heard. This will include seeing how we can work with other organisations to make sure that the government stick to their promise of co-producing the Timms review with Disabled people and organisations.

Please see the statements from other charities campaigning for Disability Justice:

Inclusion London: Statement on Universal Credit and Personal Independence Payment Bill and Inclusion London urges MPs to stand their ground on benefit proposals – Inclusion London

National Service User Network (NSUN): NSUN Responds to the Universal Credit Bill – NSUN website

Disability Rights UK: Government’s Universal Credit Bill Passes: DR UK Response | Disability Rights UK

David Ashton
Welfare Rights Advice Project Manager

Orchard House
15a Purley Road
South Croydon
Surrey
CR2 6EZ
Tel: 020 8681 6888