Plans to overhaul disability and sickness benefits have stalled, leaving millions of claimants facing a long wait before any major changes take effect.
After a revolt by Labour backbenchers and an intervention from Sir Keir Starmer, ministers have shelved sweeping welfare reforms until at least late 2026.
Instead, the Government has shifted to a two-tier approach where existing claimants are largely shielded from cuts, while new claimants face tougher rules and lower payments from next year.
The immediate action is now centred on universal credit, with confirmed changes from April 2026. By contrast, Personal Independence Payment (PIP) has been effectively frozen while a year-long review led by Sir Stephen Timms runs its course.
That means the earliest point at which PIP rules could change is the end of 2026 – and even then, only for new claimants.
Why have the reforms been delayed?
Downing Street has told the Department for Work and Pensions (DWP) it will not be given parliamentary time to introduce further welfare reforms until next year at the earliest, according to The Times.
This effectively rules out any major new benefit legislation in the King’s Speech due in May, which will set the Government’s agenda until mid-2027.
One minister told the newspaper: “Clearly any welfare reform is going to be very difficult with the backbenches, and the closer you get to a general election the less you want to do the difficult stuff.”
The pause follows a rebellion by more than 40 Labour MPs last summer, which forced ministers to abandon plans to make £5bn of savings from disability benefits. Those plans included tightening PIP eligibility through a new “4-point rule” and cutting sickness-related top-ups more aggressively.
Instead, Sir Keir has approved a slower, review-led approach, using the Timms Review as both a political shield and a long-term roadmap for reform.
When will universal credit change?
The first concrete changes will be felt through universal credit, not PIP.
From April 2026, the Government will reshape universal credit in a move ministers describe as a “rebalancing”. The most significant cut affects the health element paid to people assessed as having limited capability for work and work-related activity (LCWRA).
For new claimants who qualify after 6 April 2026, the LCWRA top-up will fall from more than £430 a month to around £217. Existing claimants are protected: their payments will not be cut and will instead be frozen or rise slightly with inflation.
Ministers argue the reduction is offset by a higher standard allowance for all universal credit claimants. This is set to rise by an above-inflation amount over the rest of the Parliament and is expected to be worth roughly £64 extra a month by 2030.
April 2026 will also see the removal of the two-child limit in universal credit. Parents will be able to claim support for a third or subsequent child, ending a policy introduced under the Conservatives.
The change is expected to lift around 450,000 children out of relative poverty, although some families will still be constrained by the overall cap on benefits.
When will PIP change?
By contrast, changes to personal independence payment have been pushed back until at least late 2026.
The most controversial disability reforms originally centred on PIP, which supports people with the extra costs of a disability or long-term health condition. Labour had planned to introduce a new “4-point rule”, requiring claimants to score at least four points in a single daily living activity to qualify for any payment.
That proposal has now been abandoned for existing claimants and delayed for new ones. PIP has effectively been frozen while the Timms Review is underway, with no changes to eligibility criteria, descriptors or points before it reports in autumn 2026.
Sir Stephen Timms, the Minister for Social Security and Disability, is leading the year-long review alongside a 12-member steering group.
The review was launched after Labour MPs blocked an attempt to make £5bn of savings from disability benefits. Its terms of reference explicitly protect PIP’s status as a non-means-tested cash benefit, and plans to replace cash payments with vouchers have been scrapped.
For PIP, the earliest point at which new eligibility rules could apply is November 2026 – and only for new claims. Existing claimants are protected until at least 2027, pending legislation.
What is the purpose of the Timms review?
At its core, the Timms Review is about preparing PIP to play a much bigger role in the benefits system later in the decade.
By 2028/29, the DWP plans to scrap the work capability assessment used for universal credit. Once that happens, PIP will become the “single gateway” for deciding whether someone receives extra health-related support in universal credit.
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The review, which will report in the autumn, is examining whether the current PIP assessment is robust enough to carry that weight. It considers daily living and mobility criteria, the points system, and whether additional evidence beyond functional assessments should be used.
DWP guidance says the review will conclude by autumn 2026, after public consultations and “lived experience” workshops in spring. Any resulting changes would then require legislation, meaning winter 2026 or early 2027 is the earliest realistic start date.
Even then, ministers have signalled that any tightened eligibility would apply only to new claimants at first, preserving the two-tier structure.
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