The Department for Work and Pensions (DWP) has confirmed that a series of welfare reforms are projected to save the UK taxpayer £1.9 billion by the end of the 2030/31 financial year. The plans involve a significant shift in how disability and work-capacity benefits are assessed, alongside new employment support programmes.
A central pillar of the changes is a move back towards in-person consultations. Face-to-face assessments for Personal Independence Payment (PIP) are set to increase from approximately 6% of all cases in 2024 to 30%. Similarly, face-to-face Work Capability Assessments (WCA) will rise from 13% to 30%.
The government indicated that the shift aims to address a backlog of assessments. Previous contracts had resulted in roughly 80% of checks being conducted virtually or via telephone, but the updated approach seeks a more balanced mix of assessment methods.
Impact on claimants and review periods
For many current claimants, the reforms include changes intended to reduce the frequency of repeat assessments. For the majority of PIP claimants aged 25 and over, review periods are being extended. These will now typically last for a minimum of three years and a maximum of five years, providing more stability for those with long-term conditions.
Changes to the Universal Credit health element also came into effect earlier this year.
Financial projections and employment support
Treasury forecasts suggest the savings will start gradually, with an initial £85 million expected in the 2026/27 financial year. This is projected to rise annually, reaching £580 million by 2029/30, contributing to the cumulative £1.9 billion target by the following year.
Alongside the savings targets, the DWP is redeploying 1,000 work coaches to assist people in moving back into the workforce.
The reforms follow a period of transition for the benefits system, as the government continues the managed move of claimants from “legacy” benefits—such as Jobseeker’s Allowance and Employment and Support Allowance—over to Universal Credit.
