Reform UK plan to scrap PIP and cut 50bn from welfare: what is proposed

What Reform UK has proposed

Reform UK has announced plans to abolish Personal Independence Payment and the health element of Universal Credit for working-age adults, replacing them with a new allowance and council-run support accounts. The party claims this would save about 50 billion pounds a year from the welfare bill. It is an opposition proposal, not government policy.

On 16 August 2026, Robert Jenrick, Reform UK's Treasury spokesperson, set out plans he described as the biggest shake-up of the welfare state in a generation, with full detail promised for the following day. The plan, reported in the Sunday Telegraph, would abolish Personal Independence Payment (PIP) and the health element of Universal Credit for working-age adults.

A new 'health security allowance', subject to regular review, would support people Jenrick described as gravely ill and severely challenged. Cash payments for lower-level conditions would end and be replaced by disability support accounts administered by local councils and mayors. These accounts could be used for equipment, adaptations, transport and personal assistance.

Existing claimants would be reassessed over three to four years. Jenrick said the party would not pretend the change was painless.

The numbers Reform is using

Reform UK claims its plan would save about 50 billion pounds a year, more than double the 23 billion pounds in welfare savings proposed by the Conservatives under Kemi Badenoch. The party says 2.89 million people would have disability or sickness payments withdrawn or changed.

Jenrick said 6.9 million people currently receive disability benefits and that the share of working-age claimants with mental health and behavioural conditions had tripled since 2002. The party also proposes an employer-funded 'return to work cover' paying for the first two years after an employee is signed off sick.

What PIP and the UC health element are today

PIP is a non-means-tested benefit for people with a long-term health condition or disability, paid regardless of whether the claimant works. The Universal Credit health element is an extra monthly amount for claimants assessed as unable to work. Neither benefit is changed by the Reform UK proposal.

PIP has daily living and mobility components, each paid at a standard or enhanced rate. The Universal Credit health element, known as limited capability for work and work-related activity (LCWRA), is an additional monthly payment for claimants assessed as unable to work.

The government is already running its own reform programme. The Timms review of PIP assessment is due to report in November 2026. From 2028/29, the Work Capability Assessment is due to be replaced by a link to the PIP daily living component.

None of the Reform UK proposals change current entitlement. Claimants should continue to report changes and attend assessments as normal.

How the other parties responded

Labour described the plan as fantasy economics built on stripping support from disabled people. The Conservatives called it a half-baked policy. Disability campaigners questioned how 'severely disabled' would be defined.

Labour said the proposal was fantasy economics. The Conservatives called it half-baked and linked its timing to questions about a 5 million pound gift received by Nigel Farage. Disability campaigners on social media pointed out that PIP is not an unemployment benefit and asked how 'severely disabled' would be defined.

What would have to happen for any of this to apply

Reform UK is an opposition party. Abolishing PIP would require primary legislation after a general election in which Reform formed a government. Even on Reform's own timetable, existing claimants would see no change on day one.

PIP is a UK-wide benefit in England and Wales. Scotland has already replaced it with Adult Disability Payment under Social Security Scotland, and Northern Ireland has its own arrangements. Reassessment over three to four years would mean, even on Reform's own timetable, no change for existing claimants on day one.

The next general election is due by 2029.

Frequently asked questions

Is PIP being scrapped?

No. This is a proposal from Reform UK, an opposition party. PIP rules and payments are unchanged. Any abolition would need legislation after an election.

How much does Reform say it would save?

About 50 billion pounds a year, according to Robert Jenrick. Labour called the figure fantasy economics and the Conservatives called the plan half-baked.

Who would be affected under the proposal?

Reform says 2.89 million working-age people would have disability or sickness payments withdrawn or changed, with existing claimants reassessed over three to four years.

What would replace PIP under the plan?

A regularly reviewed 'health security allowance' for the most severely ill and disabled, and council-run disability support accounts for equipment, adaptations, transport and personal assistance.

What is the government itself changing about PIP?

The Timms review of PIP assessment is due to report in November 2026, and from 2028/29 the Work Capability Assessment is due to be replaced by a link to the PIP daily living component.