Reform's plans to overhaul the welfare system would replace cash payments for Personal Independence Payment (PIP) with expenses reimbursed by local councils, according to party proposals. The sweeping changes, aimed at reducing the Department for Work and Pensions (DWP) bill, would see an estimated 2.89 million PIP and Universal Credit (UC) health claimants lose their entitlement once fully rolled out – half of the current 4.5 million claimants.
Disability Support Accounts to Replace Cash
For those who still qualify, or for non-severe cases, cash payments would be replaced by local council-run Disability Support Accounts (DSAs) to reimburse approved expenses. This shift is part of Reform's broader strategy to cut welfare spending and reshape the system's purpose.
Robert Jenrick, the party's Treasury spokesperson, said in a conclusion to Reform's plans: “These reforms would save taxpayers billions. By 2030, net savings would be £50 billion or £1,700 per family.” He added that the money could be returned to taxpayers through lower taxes while helping meet essential commitments such as defence and national investment.
Changing the Welfare System's Role
Jenrick emphasised that the reforms are not solely about saving money. “They are about changing what the welfare system does. Instead of paying people to stay out of the workforce, it should help them return to it,” he said. He argued that the system should support recovery rather than treat health problems as grounds for permanent dependence, and that welfare should be a reciprocal obligation of British citizenship rather than an automatic entitlement.
Jenrick criticised both major parties, stating: “Parties of both colours have overseen the welfare state’s explosion. Only Reform has the courage – and the plan – to actually fix the problem.”
Campaigners and Charities React
The proposals have drawn sharp criticism from campaigners and charities. A poverty charity official said: “This will cause horrific levels of destitution and hardship,” while campaigners described the plans as “cruel and dangerous”. A Labour source said: “This analysis exposes the true impact of Reform’s welfare proposals. Far from securing the welfare system for the future, Reform would destroy the safety net that millions of British people have depended on in tough times.”
The Disability Benefits Consortium, representing more than 100 charities, said Reform’s plans would “vastly increase poverty and worsen people’s health” by stripping disability benefits from millions of people, including those with multiple sclerosis. Disability Rights UK called Reform’s failure to understand the importance of disability benefits “utterly breathtaking”, and the charity Scope accused Reform of “pushing disabled people into poverty and calling it compassion”.
