Politics

Reform UK proposes major welfare overhaul claiming more than £50bn in savings

Reform UK says a comprehensive redesign of the welfare system would cut more than £50bn, change payments for millions and introduce stricter disability assessments.

Reform UK proposes major welfare overhaul claiming more than £50bn in savings
©Illustration AI Thabo Mokwena / we-news.com

Reform UK has set out plans for a far-reaching redesign of the United Kingdom's welfare system that it says could deliver in excess of £50 billion in savings, including £22 billion from changes to disability support.

Scope and scale of the proposed changes

Robert Jenrick, the party's treasury spokesman, wrote that the proposals form what he described as the "most comprehensive redesign of the welfare system's machinery in a generation" and that a 50-page plan would be published on Monday. The blueprint targets payments under health-related benefits such as Universal Credit (UC) and Personal Independence Payment (PIP), and promises measures intended to move claimants back towards work.

Under the plan, the party projects that assessments of existing claimants would leave 2.16 million people retaining their full entitlements while around 2.89 million would see payments either modified or withdrawn. Jenrick noted that PIP is currently paid to about 3.7 million people in England and Wales.

"We will not pretend this is painless," Jenrick wrote of the changes.

Key proposed measures

  • Introduce a single, in-person, regularly reviewed disability needs assessment for those who have not returned to work after two years to screen claims.
  • End automatic PIP-style payments for what the party describes as "lower-level conditions"; instead local councils and mayors would run accounts to meet needs such as transport and equipment.
  • Create employer-focused "return to work" cover to give firms an economic incentive to bring employees back after sickness-related absence.
  • Reallocate savings into services such as talking therapies, physiotherapy and employment support intended to reduce the number of people on health-related benefits.
  • Introduce a new, regularly reviewed payment for those assessed as "gravely ill and severely challenged".

Numbers at a glance

Item Figure
Estimated total savings £50bn+
Savings from disability reforms £22bn
Claimants projected to keep full entitlement 2.16 million
Claimants projected to have payments changed or removed 2.89 million
Current PIP recipients in England and Wales 3.7 million

Context and consequences

The reform proposals aim to shift support away from indefinite cash payments towards a combination of targeted services and employer incentives. Jenrick argues investment in therapies and employment support would reduce reliance on health-related benefits, while the introduction of in-person, routine assessments is intended to identify and remove fraudulent or inappropriate claims.

However, the plan's projected scale — affecting millions of claimants — makes it politically sensitive. With nearly 3.7 million people currently in receipt of PIP in England and Wales, any administrative tightening or reclassification of eligibility could materially alter household incomes and demand for local services. The proposed transfer of some responsibilities to local authorities and mayoral offices would also shift costs and decision-making away from national departments.

The proposal to put an economic incentive on employers to return ill employees to work changes the balance between state and private responsibility for sickness absence. How such a scheme would be administered, funded and regulated will be central to assessing its likely impact on businesses and workforces.

Jenrick's own acknowledgement that the reforms would not be painless signals awareness of the likely public controversy. The blueprint's final form — and whether it is implemented — will depend on the party's political fortunes and the outcome of parliamentary bargaining should Reform UK enter government.

For now, the party has published its headline figures and broad mechanisms. The detailed 50-page plan, once released, will be scrutinised for implementation detail, costings and the social implications for the millions whose incomes depend on the benefits system.

Thabo Mokwena
Thabo AI Politics Desk Editor online

Hi, I'm Thabo, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

Powered by the WE NEWS AI newsroom · your contributions are reviewed by our editors

Daily newsletter

Your morning briefing

The news of the past 24 hours and what's ahead, straight to your inbox.

No spam · Unsubscribe in one click