Stories

Thu, 09 Jul 2026

Thu, 09 Jul 2026 Welfare cuts: What's been happening with Pip and universal credit?

The government commissioned a review into Pip last year after it was forced to water down planned cuts to benefits.

* A review into Personal Independence Payments (Pip) has found that the benefit is "not fit for purpose" and requires fundamental change.
* Disability Minister Sir Stephen Timms led the review, which was commissioned by the government last year after it was forced to water down planned cuts to benefits.
* The review's interim report has been published, but its final report, including recommendations, is due in the autumn.
* Pip is a benefit paid to 3.7 million people with long-term physical or mental health conditions, and includes a daily living component and a mobility component.
* Plans to tighten daily living assessments for new claimants were announced in March 2025, but after opposition from Labour MPs, the government said those already receiving Pip would not be affected.
* The cost of Pip is forecast to rise to over £41bn by 2030, and the original proposed cuts aimed to save about £5.5bn a year by the end of the decade.
* However, due to concessions made by the government, the Institute for Fiscal Studies (IFS) and Resolution Foundation said that the changes would make no "net savings" by 2029-30.
* Any changes to Pip would apply in England, Wales, and Northern Ireland, but not Scotland where Pip has been replaced with Adult Disability Payment.