The Labour government has unveiled a major overhaul of the disability benefits system, with plans to conduct the vast majority of assessments remotely and significantly extend the time between checks. The reforms aim to save the taxpayer billions but have sparked immediate political controversy over fears they could be exploited.
Shift to Online Assessments and Extended Check Intervals
Under the new plans, 70 per cent of disability benefits claimants will have their conditions assessed via online methods from home, a dramatic shift from pre-pandemic practices. Before COVID-19, over three-quarters of assessments were face-to-face, a figure that had plummeted to just six per cent by 2024. Labour intends to raise the proportion of in-person meetings to 30 per cent starting next April.
Furthermore, the frequency of assessments for Personal Independence Payment (PIP) eligibility is set to change radically. For new claims, the gap between checks will increase from a minimum of nine months to up to three years. For subsequent reviews, the interval will be stretched to five years or more for millions of claimants.
Political Clash Over Savings and System Integrity
The Treasury estimates the changes will yield substantial savings, starting with £85 million in the 2026/27 financial year. This is projected to rise to £580 million by 2029/30, with total savings expected to hit £1.9 billion by 2031.
However, the Conservative opposition has launched a fierce critique. Shadow Work and Pensions Secretary Helen Whately condemned the approach, stating: "By stretching assessments out to five years and settling for just 30 per cent face-to-face checks, they are leaving the door wide open for people to exploit the system. Fewer checks mean less fairness and more cost for taxpayers."
Labour sources hit back, pointing out that it was the previous Tory administration that signed contracts enabling 80 per cent of assessments to be done virtually, accusing them of having "zero credibility on welfare."
Context of a Growing Benefits Bill
These reforms arrive against a backdrop of a swiftly expanding welfare bill and political pressure. Prime Minister Sir Keir Starmer was forced to abandon an initial plan to cut the benefits bill by £5 billion in July following a significant backlash from Labour backbenchers.
The number of people claiming disability benefits has ballooned, with more than 3.8 million now receiving PIP. A primary driver has been a surge in mental health claims, with nearly 650,000 people receiving the benefit for anxiety and mood disorders as of last July. The government's own forecasts predict the PIP bill could reach £70 billion a year by the end of this Parliament.
Work and Pensions Secretary Pat McFadden defended the new approach: "We're committed to reforming the welfare system we inherited, which for too long has written off millions as too sick to work... These reforms will allow us to save £1.9 billion, creating a welfare state that supports those who need it while helping people into work and delivering fairness to the taxpayer."
The announced changes are separate from a broader review of PIP being led by welfare minister Sir Stephen Timms, which ministers have stated will not target savings from the benefit.
