What are the Pip and universal credit changes and who is affected?

Changes to the welfare system aimed at saving £5bn a year by 2030 and getting more people into work have been announced by the government.

It will be harder to claim a key disability benefit called Personal Independence Payment (Pip) under the proposals.

The basic level of universal credit - the largest working age benefit - will rise, but those aged under 22 will no longer be able to claim incapacity benefit on top.

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What is Pip and how are the rules changing?

Pip is paid to more than 3.6 million people who have difficulty completing everyday tasks or getting around as a result of a long-term physical or mental health condition.

There are two elements - a daily living component and a mobility component. Claimants may be eligible for one or both.

Daily living covers areas such as requiring help with preparing food, washing, reading and managing your money. The mobility element includes physically moving around or getting out of your home.

Applicants are scored on a points system based on their ability to carry out everyday tasks and on their mobility. Those who score 8-11 points in total receive the standard rate of Pip, and those who score 12 points and over are eligible for the enhanced rate.

From November 2026, the government says applicants will need to score at least four points in one activity to receive the daily living component of Pip.

Eligibility for mobility payments will not be affected.

The payments for daily living are:

• A standard rate of £72.65 per week

• An enhanced rate of £108.55 per week

For mobility the payments are:

• A standard rate of £28.70 per week

• An enhanced rate of £75.75 per week

Pip is usually paid every four weeks and is tax-free. It does not change depending on your savings or income and does not count as income affecting other benefits, or the benefit cap. You can get Pip if you are working.

At present, the payment is made for a fixed period of time between one and 10 years, after which it is reviewed. A reassessment could come earlier if your circumstances change.

Under the changes announced by the government, there will be more frequent reassessments for many people claiming Pip. Many recipients could be affected.

However, those with the highest levels of a permanent condition or disability will no longer face reassessment.

Initially, it was thought Pip payments might not be increased in line with inflation for a year, but the government has said they will not be frozen or means tested.

Pip is paid in England, Wales and Northern Ireland.

There is a similar but separate benefit in Scotland called the Adult Disability Payment.

How is universal credit changing?

The government has also made changes to universal credit, which is currently paid to 7.5 million people.

At present, more than three million recipients have no requirement to find work, a number that has risen sharply.

The basic level of universal credit is worth £393.45 a month to a single person who is 25 or over.

But if you have limited capacity to work because of a disability or long term condition, this payment more than doubles, due to a top up of £416.19.

Under the proposals, claimants will not be eligible to get this incapacity top-up until they are aged 22 or over.

New claimants will also see this top-up fall from £97 extra per week in 2025 to £50 extra per week by next year.

The higher rate for existing health-related claimants will be frozen until 2029-2030.

At the same time, the basic payment level will rise, reaching a £775 annual increase by the year 2029-30.

What is being done to get more people into work?

The government says it wants to help those who can work back into employment, while doing more to protect those with severe conditions who are unable to do so.

As part of this it will invest £1bn in "high-quality, tailored and personalised support" to help people find jobs.

A number of changes have been announced which, the government says, break the link between trying to get into work and losing benefits.

The work capability assessment, which analyses eligibility for the health related top-up to universal credit, will be scrapped by 2028.

Instead, claimants will have to go through the Pip system to claim for a health benefit. The government says they will be assessed on how their disability affects their daily life, rather than on their capacity to work.

While you can receive universal credit or Pip while in employment, universal credit is means-tested and tapers off, while Pip is not affected by how much someone works or their level of savings.

Under a new "right to try" system people will not be penalised for trying to get back in to work, the government says.

The government will also merge job seekers allowance and employment seekers allowance into a single time-limited benefit that is not means-tested.

Why is the government aiming to cut welfare spending?

Overall, the government currently spends £65bn a year on health and disability-related benefits. This is projected to increase to £100bn by 2029.

Pip is now the second-largest element of the working-age welfare bill, with spending expected to almost double to £34bn by 2029-30.

When Pip was introduced in 2013, the aim was to save £1.4bn a year by reducing the number of people eligible for payments. However, initial savings were modest and the number of claimants has risen.

About 1.3m people now claim disability benefits primarily for mental health or behavioural conditions such as ADHD.

That is 44% of all working age claimants, according to the independent economic think-tank, the Institute for Fiscal Studies (IFS).