Government to save £5bn by restricting benefits to 'those with the greatest need'

The government will save £5bn by cutting the number of people eligible for some benefits, Liz Kendall has announced.

Speaking in the Commons, the work and pensions secretary said the number of new people claiming personal independence payment (PIP) is "not sustainable".

She said the government will not freeze PIP - as reports had previously suggested - but instead make it harder to qualify for the daily living allowance from November 2026.

Personal Independence Payment (PIP) is money for people who have extra care needs or mobility needs as a result of a disability.

People who claim it are awarded points depending on their ability to do certain activities, like washing and preparing food, and this influences how much they will receive.

Ms Kendall said that from November 2026, people will need to score a minimum of four points in at least one activity to qualify for the daily living element of PIP. Currently, the standard rate is given if people score between eight and 11 points overall, while the enhanced rate applies from 12 points.

The changes will not affect the mobility component, Ms Kendall said.

The cabinet minister also announced a review of the PIP assessment, which she said will be done "in close consultation with disabled people, the organisations that represent them and other experts".

She said this forms part of a reform package "that is expected to save over £5 billion" by 2029.

The announcement comes as Chancellor Rachel Reeves struggles to balance the books due to a poor economy and geopolitical events.

The cost of long-term sickness and disability benefits for working-age people has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years - a figure ministers say is unsustainable.

Labour says there's also a "moral case" for change, as people are written off too quickly instead of being supported back into work, with one in eight young people currently not in education, employment or training.

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