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Millions face losing out under Labour’s benefits shape-up - Who will be affected?
Local TV
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19/03/2025
Reforms to the benefits system are facing fierce opposition- including from MPs within the Labour Party. Critics warn that vulnerable people will be considerably worse off.
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00:00
So, major changes are on the way for millions who rely on benefits across the UK.
00:08
Chancellor Rachel Reeve says reforms announced this week are designed to simplify the system,
00:15
reduce spending and encourage more people back into work.
00:18
Under the new plans, the eligibility criteria for personal independent payments,
00:24
known as PIP, will become stricter. Currently, PIP supports around 3 million people living with
00:31
disabilities or long-term health issues, but these tighter rules mean that around a million recipients
00:38
could either see their benefits reduced or even stopped altogether. Those likely to be most
00:44
affected are claimants with less severe physical conditions or certain mental health conditions
00:50
who may no longer qualify under the new assessments. Another key change is the abolition
00:57
of work capability assessments. These are the tests used to determine if someone receiving
01:03
sickness benefits is capable of returning to employment. Instead, the government says it will
01:09
introduce a new system intended to provide clearer pathways back into work. Now, while some campaigners
01:17
have welcomed an end to assessments, they've long criticized as stressful and inaccurate.
01:24
Concerns have been raised that the new approach might force people who are genuinely unable to
01:30
work into unsuitable employment. There's also an impact on universal credit. While the standard
01:38
allowance for most claimants will see a slight increase at around £1.50 extra a week for
01:43
individuals and £2.50 for couples, the additional health-related top-ups currently available to some
01:50
claimants will now be reviewed more regularly, and in some cases even reduced. Charities say
01:57
this could leave vulnerable people in this region much worse off, particularly in areas with higher
02:04
levels of deprivation. The government insists these changes are essential, arguing that the current
02:10
system is both overly complicated and far too expensive. Opposition politicians and welfare
02:17
advocacy groups warn these reforms risk pushing thousands of vulnerable people
02:22
into hardship, now in areas already struggling with high unemployment and poverty.
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