Welfare cuts: What are the Pip and universal credit changes?

The government has confirmed major concessions to rebel Labour MPs over its planned changes to benefits.

People currently receiving personal independence payment (Pip), or the health element of universal credit, will continue to do so.

However, the planned cuts will still affect future claimants.

What is Pip and how is it changing?

Pip is paid to 3.7 million people who have a long-term physical or mental health condition in England and Wales, up from 2.1m in 2019.

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

The government now plans to tighten daily living assessments for future claimants. This will not affect those already receiving Pip.

Pip assessments involve questions about tasks like preparing and eating food, washing and getting dressed. Each is scored from zero – for no difficulty – to 12 – for the most severe.

From November 2026, the government says people will need to score at least four points for one activity, instead of qualifying for support across a broad range of tasks.

For example, needing help to wash your hair, or your body below the waist, would be awarded two points, but needing help to wash between the shoulders and waist would equate to four points.

However, the new four-point threshold, even when applied to new claimants only, is now expected to be drawn up together with disability charities. How the scoring will be applied is unclear.

Pip is usually paid every four weeks and is tax-free. It does not depend on someone’s savings or income and does not affect other benefits, or the benefit cap. People can get Pip if they are working.

At present, the payment is made for a fixed period of time between one and 10 years, after which it is reviewed. That could be sooner if someone’s circumstances change.

The government plans more frequent reassessments. However, those with the highest levels of a permanent condition or disability will no longer face reassessment.