Government publishes Universal Credit and Personal Independence Payment Bill

Charities have called the Government’s new Universal Credit and Personal Independence Payment Bill “catastrophic for disabled people”.

The Bill, which was published today, comes as hundreds gathered for a mass lobby calling for Universal Credit to be fit for purpose.

It also follows research produced by the food bank charity Trussell that showed that 440,000 people in disabled households will be forced into severe hardship and at risk of needing a food bank in 2029/30, if the UK government goes ahead with planned cuts to social security.

The most significant cuts to disability benefits were unveiled in the Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper . The aim was to unlock economic growth by saving £5 billion by 2030.

The main elements of the welfare reforms include proposed changes to Universal Credit, Personal Independence Payment (PIP) and Employment and Support Allowance.

It is thought that MPs will have their first vote on the Bill on 3 July 2025 and will be asked to vote on this bill before seeing:

• The Office for Budget Responsibility’s assessment of its employment impacts.
• The conclusions of the recently announced review into the PIP assessment.
• The completion of the Government’s independent ‘Keep Britain Working’ review of the role of employers and government in tackling health-related inactivity.

Transitional period for universal credit changes

The Bill confirms that existing claimants affected by changes to the Personal Independence Payment daily living component, including those who lose eligibility to Carers Allowance and the carer’s element of Universal Credit, will receive an extra 13 weeks of financial security.

It says this will give people who will be affected by the changes time to adapt, access new, tailored employment support, and plan for their future once they are reassessed and their entitlement ends.

Severe Conditions Criteria Group

The Bill also includes details of the Severe Conditions Criteria group, which includes individuals with the most severe and permanently disabling conditions who will never be able to work.

This group, which consists of 200,000 individuals, will not be called for reassessment for Universal Credit under new legislation as part of the Government’s commitment to protecting the most vulnerable and severely disabled.

They will also be paid the higher rate of Universal Credit health top-up of £97 per week, to help them “live with dignity and security.”

Work and Pensions Secretary Liz Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.

“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.”

Responses to the Bill

Dr Rhidian Hughes, Chief Executive of the Voluntary Organisations Disability Group (VODG), said: “There is a great deal of concern about what the Universal Credit and Personal Independence Payment Bill means for people’s lives, especially as it comes before the Green Paper on Welfare Reform concludes.

‘Undoubtedly reform is needed to the welfare system. It is complex, frustrating and often works against people. There are many effective ways of supporting disabled people to enter and stay healthy in employment and training – as demonstrated by disability organisations within the VODG membership. But the policy narrative around welfare reform is too often focused on cuts. According to the Resolution Foundation proposals in the current Bill could see up to 1.2 million disabled people lose support, with many facing losses of £4,200–£6,300 a year. This is unacceptable and must change. 

‘We urge MPs to work with disabled people, families and carers to put disabled people at the heart of this Bill as it makes its way through Parliament and remember the lives that will be directly impacted by this legislation.’

Jackie O’Sullivan, Executive Director of Strategy and Influence at Mencap, said: “Today the Government confirmed the choice to turn its back on thousands of disabled people and by pushing ahead with these welfare reforms, they are causing a huge amount of anxiety.

“Mencap’s recent survey of people with a learning disability found an alarming 70% would need to cut down on food if they lose PIP, while over half (60%) said they would need to cut back on heating and nearly half (45%) were worried they would be unable to leave their home. These stats paint a very grave picture of what’s to come for those who will lose PIP under the Government’s plans.

“The Government needs to go back to the drawing board to work with disabled people on fixing the issues with the social security system in a way that does not leave anyone worse off.”

A spokesperson from Scope said: “This bill will be catastrophic for disabled people. Cutting benefits will plunge hundreds of thousands into poverty. Over 800,000 will lose at least some financial support from Pip. It will have a devastating effect on disabled people’s health, ability to live independently or work.

“A transition period will only temporarily delay a cut and disabled people will continue to be living with extra costs when it comes to an end.”

Alison Bloomer

Alison Bloomer is Editor of Learning Disability Today.

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