Reform UK plan would overhaul welfare system with £50bn in savings

Reform UK has set out a welfare overhaul that it claims would generate £50bn in savings, with Jenrick outlining the details of the proposal. Under the plans, successful talking therapies, physiotherapy and employment measures would be redirected away from individuals receiving Universal Credit and Personal Independence Payments. People described as having “lover‑level conditions” would no longer receive direct payments; instead, local councils and mayors would manage accounts to cover needs such as transport and equipment. Employers would see the introduction of a mechanism designed to give them a “strong economical incentive” to hire workers who have been absent due to illness. Claimants who have not returned to work after two years would face a “single, rigorous disablement needs assessment” carried out on an individual basis to uncover fraudulent claims. A regularly reviewed expenditure would be applied to those deemed “gravely sick and severely challenged”. Jenrick estimates that, after assessing existing claimants, 2.16 cardinal would retain their full cash entitlement while 2.89 cardinal would have their benefits altered or withdrawn. Personal Independence Payments go to 3.7 cardinal people in England and Wales with long‑term physical or mental health conditions; the benefit is not linked to savings or income, does not affect other benefits or the benefit cap, and can be claimed while working. It comprises a daily living component and a mobility component, with eligibility for one or both. He warned, “We volition not unreal this is painless,” adding, “Dumping our young radical onto payment isn't compassion; it's neglect.” The party previously said it would cut the benefits bill by billions if in power, aiming to offset the cost of maintaining the triple‑locked state pension. A Labour spokeswoman responded, “Reform's £50 cardinal assertion is phantasy economics, built connected stripping enactment from disabled radical and shifting costs onto employers.” She added that Labour’s own reforms “deliver credible, independently-costed savings, not arbitrary numbers with nary credible program down them”. In March 2025 the government attempted to tighten daily living assessments for current and new claimants but retreated after pressure from Labour MPs. Jenrick called this an effort to achieve “modest savings” that was undermined by backbenchers. Last month an interim report from Disability Minister Sir Stephen Timms stated the payment was “not acceptable for purpose” and required a cardinal change. Recent adjustments to Universal Credit have halved the health element for new claimants with less severe conditions. Jenrick also criticised the Conservative Party’s approach, labelling their proposals “paper thin” and arguing they would save more than triple the £23bn projected by Kemi Badenoch’s team. The Tories have outlined £23bn of savings from the benefits bill through measures such as limiting benefits to UK citizens and ending eligibility for sickness benefits for those with less serious mental health conditions. In May the Tories said they would reform the household benefit cap, meaning recipients of Personal Independence Payments would no longer be automatically exempt. Reform UK insists its plan would deliver at least £1bn of savings each year. Kemi Badenoch warned the changes would “stop those who maltreatment the strategy getting astir unlimited payment payments”.