The Reform Party has detailed proposals to overhaul disability benefits, introducing a new Health Security Allowance that would replace Personal Independence Payment (PIP) and the Work Capability Assessment under Universal Credit. The plan, which could save £5 billion, would see working disabled claimants lose 55p of every £1 earned above basic thresholds.
New Allowance Details
Robert Jenrick, speaking on behalf of the party, said the new allowance would be given only to those whose condition is "so severe, enduring or high-risk that they cannot reasonably be expected to support themselves through work." Unlike PIP, the allowance would be means-tested under Universal Credit rules, meaning that earnings above basic thresholds would reduce or wipe out direct cash payments, regardless of the claimant's condition.
The proposal is part of a broader plan to cut the benefits bill by £5 billion if the party wins the next general election. Reform also intends to scrap the current Work Capability Assessment, replacing it with a new disability needs assessment intended to be substantially tougher.
Expert Analysis
Tom Waters, from the Institute for Fiscal Studies, commented: "For disability benefits, Reform envisage a system that is much harder to qualify for, that provides more in-kind support such as equipment rather than cash, and that means-tests supports away from better-off households, and whose burden is shouldered slightly more by employers." He noted that most savings would come from the new assessment, but added: "There is relatively little detail on what the new assessment would actually entail or on how they would avoid the experience of previous attempts to toughen up the system, which saw savings falling significantly short of government’s expectations."
Waters also highlighted a significant technical change: a switch to a lower measure of inflation for uprating benefits each year. This would save an estimated £4.8 billion in 2033–34 and would continue to shrink the benefit system indefinitely compared to current rules.
Political Response
Robert Jenrick defended the proposals, stating: "The basic bargain of the welfare state should be simple: Those who can work should work. Those who need support because of severe disability should receive it. British taxpayers should support only British citizens. And those who defraud the system should expect to be caught. The current system fails to deliver that basic bargain. Reform would re-establish it."
He added that long-term, work-capable claimants would be required to contribute to their communities while looking for employment. The reforms aim to ensure disability benefits distinguish between severe, enduring conditions and problems where treatment, rehabilitation, and practical support are more appropriate. Access to most non-contributory benefits would be reserved for British citizens, with stronger enforcement to ensure taxpayers' money goes only to those genuinely entitled.
