On Tuesday (the 18th of March), the Government set out the most significant welfare reforms in a generation. We have inherited a broken Tory welfare system that has failed and is failing too many people—trapping millions in long-term unemployment whilst denying them the dignity and financial security that work provides. It is unsustainable, indefensible and unfair.
The welfare state must be one that is there for all of us when we need it, now and in the future, that protects those most in need, and that delivers equality and dignity for all. There will always be some people who cannot work, and they will be protected.
We are taking decisive action to fix this broken Tory system—supporting those who can work, whilst protecting those who cannot.
Too many people have been denied the benefits of employment. Good, suitable work benefits physical and mental health. One in ten working-age adults now claims a sickness or disability benefit, with long-term sickness rising to 2.8 million and the number of Personal Independence Payment (PIP) claimants projected to double to 4.3 million by the end of this decade.
This trajectory is unsustainable. That is why our Green Paper sets out a fresh approach to prevent people from falling out of work, to fix the broken benefits assessment system, and deliver critical employment support.
We are already tackling the drivers of people being out of work and supporting people into good jobs. We’re making work pay with our landmark Employment Rights Bill and introducing the biggest reforms to employment support in a generation; £240 million already being invested to help people into work.
But we’re going even further, investing £1 billion into employment support. This is one of the largest ever investments to increase opportunities to work for sick and disabled people, guaranteeing high quality, tailored support to get people on a pathway to work.
This will come alongside a package of reform to support people into jobs and make the broken system fairer and more sustainable. Here are a few of these measures that will make a significant difference to our country and to people’s life chances.
Firstly, we are addressing the perverse financial incentives that hold people back from work under the current system by rebalancing the payments in Universal Credit. This means that we are increasing the standard allowance above inflation for the first time ever, with a £775 cash increase per year by 2029/30 for existing and new claimants, while reducing the health top-up for new claims from April 2026, alongside active support to help people back to health and work.
Alongside this, we’ll remove barriers by ensuring that going back to work in and of itself will never lead to a reassessment through a brand new ‘right to try.’ This will give people the confidence to take on a job knowing that if it doesn’t work out, they won’t have to start from scratch.
In addition, we’re consulting on new unemployment insurance that will help people quickly get back on track if they fall out of work, giving them a higher rate of benefit.
We have also announced specific measures to protect those who are most in need. We will protect existing Universal Credit claimants by holding their health top-up steady in cash terms whilst they benefit from the higher standard allowance.
We are also looking at ways to ensure that those who will never be able to work are afforded confidence and dignity by never having to go through reassessments and proposing an additional Universal Credit premium to offer those people the support they need.
Through significant increases to the national minimum wage and national living wage, we are already delivering for 150,000 workers across Wales. We’ve uprated working age benefits and £144m has been invested in apprenticeships. The Welsh Government has supported 48,500 young people into work, training or education through its Young Person’s Guarantee. Tens of thousands of good jobs are being created through Welsh Freeports, Investment Zones, and local Growth Deals.
The Tory welfare system we inherited was broken—discouraging work whilst simultaneously failing those most in need. We have to reform to ensure that we will still be able to have the safety net of a social security system in the future.
If you would like to contribute to the consultation on these proposed reforms, you have until the 30th of June 2025 to take part in the consultation which can be found here: https://www.gov.uk/government/consultations/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper
By fixing the system, we are unlocking opportunity, driving economic growth, and ensuring that everyone—regardless of their background or health condition—has the support and security they deserve and need.
Constituent FAQs
- Will I still get my payments as normal?
Yes, please be assured there will be no immediate changes to your health and disability-related benefit payment. For more information about the proposed changes to health and disability benefits please visit www.gov.uk and search for DWP green paper.
- Will my claim be affected?
No, there will be no immediate changes to your health and disability-related claim. If you have made a claim or are getting a health and disability-related benefit you should continue to contact the DWP as usual and provide any information or changes to your circumstances and current needs. For more information about the proposed changes to health and disability benefits please visit www.gov.uk and search for DWP green paper.
- When will the changes to health and disability benefits be made?
We are consulting on our proposed changes to health and disability benefits. The consultation will be open for at least 12 weeks and no changes will be made until we have reviewed all the responses. You are welcome to take part in the consultation at www.gov.uk. Search for DWP green paper. For more information about the proposed changes to health and disability benefits please visit www.gov.uk and search for DWP green paper.
- Will my benefits change immediately?
No, please be assured there will be no immediate changes to your health and disability related benefit payment. For more information about the proposed changes to health and disability benefits please see https://draft-origin.publishing.service.gov.uk/government/consultations/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper
- I’ve submitted a claim but haven’t heard the outcome, will my claim be affected?
No, there will be no immediate changes to your health and disability related claim. If you have made a claim or are getting a health and disability related benefit you should continue to contact the DWP as usual and provide any information or changes to your circumstances and current needs. For more information about the proposed changes to health and disability benefits please see https://draft-origin.publishing.service.gov.uk/government/consultations/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper
- When will the changes to health and disability benefits be made?
We are consulting on our proposed changes to health and disability benefits. The consultation will be open for at least 12 weeks and no changes will be made until the DWP have reviewed all the responses. You are welcome to take part in the consultation. For more information about the proposed changes to health and disability benefits please see https://draft-origin.publishing.service.gov.uk/government/consultations/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper/pathways-to-work-reforming-benefits-and-support-to-get-britain-working-green-paper