The UK benefits system is going through some of the biggest changes in years – especially for people who claim Universal Credit (UC), Personal Independence Payment (PIP) and other health- and disability-related benefits.
If you live in Wales and you’re disabled, have a long-term health condition, or care for someone who does, these reforms are likely to affect you – if not now, then in the next few years.
This guide explains:
What’s changing
When changes are due to happen
Who is most likely to be affected
What this might mean in practice
Everything here is accurate at the time of writing (November 2025). Laws can change, so always check for up-to-date advice before making big decisions.
1. The big picture: what is the government trying to do?
In March 2025 the UK Government published a Green Paper called Pathways to Work: Reforming Benefits and Support to Get Britain Working.
It aims to reduce spending on health and disability benefits and link financial support more closely to a person’s ability to work.
Two key steps are driving this:
The Universal Credit and Personal Independence Payment Bill, which will set the legal framework for change.
Adjustments to how Universal Credit health elements and PIP entitlement work, starting with new claimants.
Disability and carers’ organisations have warned that these reforms could increase hardship, particularly for those already living on low incomes.
2. Timeline of key benefit changes (2025–2030)
From April 2025
Most working-age and pension-age benefits rose in line with inflation.
For Universal Credit, the maximum deduction for debt repayments fell from 25 % to 15 %, giving many households a small increase in monthly income.
The emergency Cost-of-Living Payments have now ended and there are no plans to restart them.
From April 2026 – major Universal Credit changes
From April 2026, the structure of Universal Credit begins to change.
The basic standard allowance will rise above inflation each year from 2026 to 2029.
At the same time, the health-related additions for most new sick and disabled claimants will be reduced and then frozen.
At present, people found to have Limited Capability for Work and Work-Related Activity (LCWRA) receive an extra £423.27 per month.
Under the new rules, new claimants will receive roughly half that amount, about £217, which will stay fixed until 2030.
Existing claimants with LCWRA before the change will usually stay on the higher rate.
In practical terms:
> People already on UC with a health element before April 2026 will keep the higher rate.
Anyone starting a health-related claim after that date will receive much less.
The Government has also suggested possible changes for younger claimants, though details are still being debated.
2026–2029: linking UC health support to PIP
Between 2026 and 2029 the Work Capability Assessment will be phased out.
In its place, the outcome of your PIP assessment will determine whether you qualify for the health element of Universal Credit.
By around 2028–29 the two systems will effectively merge, meaning your PIP result will decide your UC health-related entitlement.
This could disadvantage people whose conditions affect their ability to work but don’t fit easily into PIP’s assessment categories, such as some mental-health or fluctuating conditions.
3. Changes to Personal Independence Payment (PIP)
PIP will remain a non-means-tested disability benefit, but the Government intends to focus it more tightly on people with the highest support needs.
Tightening eligibility
Planned measures include:
Requiring claimants to score a minimum number of points in at least one daily-living activity, rather than across the whole assessment.
Introducing the new criteria for new claims from late 2026, and applying them to existing claimants at review later.
Consultations are also under way on possible future reforms such as revising the assessment or offering some support through services instead of cash.
What about existing PIP claimants?
Current claimants will keep their awards until they are reviewed in the normal cycle.
The new rules will apply mainly to new claims first, but later reviews could reduce entitlement if thresholds change.
4. Other notable changes
End of Cost-of-Living payments
The temporary cost-of-living payments introduced in previous years have ended.
Even with inflation-linked rises, many households will feel a real-terms drop in income as that extra support disappears.
Above-inflation rise to the UC standard allowance
The main UC allowance will rise above inflation each year to 2029, but because the health element for new claimants is being cut and frozen, this increase will not benefit everyone equally.
Some people without health conditions may see a slight gain, while new disabled claimants may see a loss.
New “Unemployment Insurance”
A future “Unemployment Insurance” scheme is planned to merge jobseeker benefits into a single payment linked to National Insurance contributions.
This affects people losing work more than those with long-term health issues, but it reflects the wider shift toward time-limited support.
5. What this means if you’re in Wales
Wales has a higher proportion of disabled people and unpaid carers than most of the UK, so these changes are expected to have a bigger impact here.
People who develop new health conditions after 2026 may get less additional support through UC.
Those who lose PIP at review may also lose the new UC health element once the systems are linked.
Many households currently just coping could face a real-terms reduction in income over the decade.
The Welsh Government cannot change UK benefits law, but it does fund some discretionary grants, hardship funds and local support schemes, which will become increasingly important.
6. What to think about now
Every situation is different, but these general points may help you or someone you support:
Claim timing
If you already have a health condition, consider making UC health-related or PIP claims sooner rather than later, before the lower health element applies.
Get proper advice first to avoid mistakes.
PIP importance
As PIP becomes the gateway to UC health support, ensuring forms are well-completed and evidence is thorough will matter more than ever.
Poorly presented claims could affect both benefits.
Evidence and advocacy
For fluctuating, neurodivergent or mental-health conditions, clear evidence and advocacy will be crucial to make sure the assessment reflects real-world limitations.
7. The politics and uncertainty
The reforms are still moving through Parliament and could change before final implementation.
Critics argue that reducing health-related benefits could deepen poverty and inequality, while supporters say it will encourage employment and simplify the system.
Whatever the outcome, change is certain – and understanding the basics early will help people prepare.
8. How DCAG fits into this
As these changes roll out, many people will feel confused, anxious or unsure where to turn.
DCAG provides independent community-based advocacy and guidance – not legal advice, but practical support to help people:
Understand letters and benefit decisions
Prepare for assessments and communicate with agencies
Recognise when something looks wrong and needs specialist advice
As the welfare system becomes more complex, this kind of support will only become more essential.
9. Final thoughts
To summarise:
Universal Credit will offer a slightly higher basic allowance but a lower health addition for new claimants.
PIP will remain central but will likely become harder to qualify for, with new thresholds and stronger links to UC.
Work Capability Assessments are expected to disappear by 2028–29, replaced by a single health-assessment model.
Disabled people and carers in Wales may face greater financial pressure without timely advice and advocacy.
These reforms are still developing, but they represent a clear shift: a leaner system that expects more self-reliance from claimants.
Having accurate information and strong community support will be vital as these changes unfold.
