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Millions of benefit recipients are set to see their incomes cut or their entitlements taken away following Labour’s decision to slash £5 billion from the welfare spending bill.
A slate of reforms were announced by Liz Kendall on Tuesday, as expected focusing on health and disability-related benefits. The two most commonly claimed – the Personal Independence Payment (PIP) and the health element of Universal Credit – are both set to see major changes.
The work and pensions secretary said: “There’s clear evidence that shows good work is good for health and plays a vital role in recovery. Too many disabled people and people with health conditions want to work but are denied the right support to do so.
“Tackling this is central to our commitment to spread opportunity and improve the health of the nation.”

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But preliminary analysis suggests that the changes will see around 900,000 PIP claimants worse off by £2,400 per year in 2028/29. Meanwhile, around 2.4 million families claiming the health element of Universal Credit will lose around £280 a year, the research from the Institute of Fiscal Studies (IFS) found.
And this is just the impact on those currently claiming the benefit. From April 2026, the rate of the UC health element will be cut by nearly 50 per cent, from £97 per week to £50 per week. This will be mean £2,500 less a year for new claimants, even after the £7 a week flat-rate rise to the standard UC allowance.
The government is set to release a full assessment on the impact of the changes next week, revealing exactly how many people will be affected and how.
James Taylor, Executive Director of Strategy at disability equality charity Scope, said: “The biggest cuts to disability benefits on record should shame the government to its core. They are choosing to penalise some of the poorest people in our society. Almost half of families in poverty include someone who is disabled.”
The announcement will inevitably come as a disappointment to millions of disabled people living the UK, many of whom will now be faced with a real-terms cut to their livelihoods.
There is no replacing the income that will be lost from the changes, but it can be helpful to ensure you are claiming all the support you are entitled to. Here’s a guide to some of the other support available for those who are concerned about the cuts:
Think you might be eligible for health benefits? Claim now
First thing’s first, these changes are not coming in immediately. They will be subject to lengthy consultations and a legislative process which means they will take a while to come into force.
The earliest scheduled changes are set to come into effect in April 2026, when UC rates for those in receipt of the UC health element will be frozen, and is slashed for new applicants.
This means anyone who believes they are eligible for the health element of Universal Credit should consider applying as soon as possible. This will ensure that they are able to keep the receiving the payment at the previous amount, worth a massive £2,500 a year.
It is also worth considering applying for PIP now if you think you might be eligible. It won’t be until 2028 that the criteria for the benefit is changing to make it more difficult to claim, as well as the assessment for it being combined with the one for UC’s health element.
Get a local ‘care needs assessment’
For those who need help with coping day-to-day, local councils have an obligation to offer support through their social services.
Anyone can request a care needs assessment from their local council, either by calling them or online. It works similar to PIP, providing support for specific needs.

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This could be things such as equipment like a walking frame or personal alarm; changes to the home, like as a walk-in shower; practical help from a paid carer; and day care for your child if either you or they are disabled.
To assess eligibility, the council will arrange an assessment with someone from their services, like a social worker or occupational therapist. They may also recommended that you be referred for a home adaptations assessment, something else you can also apply for yourself.
Over 66? Look into Attendance Allowance
Attendance allowance is a benefit for pensioners who have a disability or health condition severe enough to need someone to regularly help them. The DWP benefit can pay up to £108.55 a week, adding up to an total of £5,644.
Crucially, the payment is not means-tested, meaning anyone who qualifies will get it regardless of their income or savings.
There are many common health conditions that could qualify a person for attendance allowance. These include arthritis, blindness, heart disease, Parkinson’s and asthma.
Attendance allowance is paid at two rates depending on the level of care that is needed. The higher rate is worth £108.55 a week, while the lower is worth £72.65 a week.
Other services available
Benefits support
Mental health support