Government unveils benefit crackdown designed to save £5bn
The eligibility criteria for disability benefits will be narrowed in a bid to slash £5bn from the welfare bill, 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”.
Politics Live: Reaction as welfare system reforms announced
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 component 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.
It’s not clear how many people will be impacted as a result. The Office for Budget Responsibility will set out their final assessment of the costings at the spring statement next week.
Charities and unions reacted angrily to the announcement, with the Disability Benefits Consortium urging the government to reverse the “cruel cuts”, saying it will be harder for disabled people to manage.
What other measures have been announced?
Ms Kendall 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”.
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Young people brace for benefit reform
There will also be a consultation on delaying access to the health top up on universal credit until someone is aged 22, with the savings to be reinvested into work support and training opportunities.
And the Work Capability Assessment (WCA), which determines if a person is fit for work or not, will be scrapped in 2028 with financial support for people who are sick or disabled determined solely through the PIP assessment.
Ms Kendall said the WCA is based on a “binary can can’t work divide when we know the truth is that many people’s physical and mental health conditions fluctuate“.
“Reducing the number of assessments that people have to go through is a vital step towards de-risking work”, she added.
Other reforms announced today include:
- Merging jobseeker’s allowance and employment and support allowance
- Raising the standard universal credit allowance by £775 in 2029/30
- Introducing a “right to try” initiative so people who want to attempt to get back into work won’t lose their benefits while they do
Ms Kendall said: “This is a significant reform package that is expected to save over £5 billion by 2029.”
Chancellor looking for savings
The announcement comes as Chancellor Rachel Reeves struggles to balance the books due to a poor economy and geopolitical events, with further spending cuts expected in her spring statement next week.
Rachel Reeves
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.
Ministers have said there is also a moral case for change, with one in eight young people not in education, training or employment – prompting fears of a “wasted generation”.
Ms Kendall said that while more people are now living with a disability, the increase in those seeking disability benefits is disproportionate.
Claims amongst young people are up 150%, while claims for mental health conditions are up 190% and claims for learning difficulties are up over 400%, she said.
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Ms Kendall blamed the Tories for creating a system that is “holding our country back”.
She acknowledged that some people can never work, but said many sick and disabled people want to “with the right help and support” and they should “have the same chances and choices as everyone else”.
Reports ahead of the announcements had suggested there was unease around the cabinet table, with ministers including Deputy Prime Minister Angela Rayner and Energy Secretary Ed Miliband said to have voiced concerns in private.
But the prime minister’s official spokesman insisted this morning that the government is united in its agreement on the need for reform.
Call to reverse ‘cruel cuts’
Charles Gillies, of the Disability Benefit Consortium, said: “These immoral and devastating benefits cuts will push more disabled people into poverty, and worsen people’s health.”
He said changes to personal independence payments will make it harder for disabled people to manage “the overwhelming additional costs of their condition, from wheelchairs to visits from carers”, calling on the government to reverse the “cruel cuts”.
UK
Man and boy arrested on suspicion of arson after restaurant fire leaves two in critical condition
A 54-year-old man and a 15-year-old boy have been arrested on suspicion of arson with intent to endanger life after a restaurant fire in east London on Friday.
Three people were taken to hospital in a life-threatening condition after the fire at the Indian Aroma in Ilford.
Two remained in a critical condition on Sunday morning, according to the Metropolitan Police.
The restaurant suffered extensive damage in the blaze.
Two further victims are thought to have left the scene before officers arrived, Scotland Yard said.
Woodford Avenue from above. Pic: UK News and Pictures
Police are still trying to identify them.
CCTV footage seen by the PA news agency appears to show a group of people wearing face coverings walk into the restaurant and pour liquid on the floor.
Seconds later, the inside of the restaurant is engulfed in flames.
“While we have made two arrests, our investigation continues at pace so we can piece together what happened on Friday evening,” said the Met Police’s DCI Mark Rogers.
“I know the community [is] concerned and shocked by this incident.
The moment the fire broke out.
“I would urge anyone with any information or concerns to come forward and speak to police.”
Hospital porter Edward Thawe went to help after hearing screams from his nearby home.
He described the scene as “horrible” and “more than scary and the sort of thing that you don’t want to look at twice.”
He said: “I heard screaming and people saying they had called the police.”
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The 43-year-old said he saw a woman and a severely burned man who may have been customers.
Another witness, who did not want to be named, said he saw three “severely burned” people being doused by the emergency services and given oxygen.
“I can only imagine the pain they were going through,” he said.
On Saturday, the London Ambulance Service told Sky News: “We sent resources to the scene, including ambulance crews, an advanced paramedic, an incident response officer and paramedics from our hazardous area response team.
“We treated five people for burns and smoke inhalation. We took two patients to a major trauma centre and three others to local hospitals.”
The police investigation is continuing.
UK
Fast-track asylum appeals process to be introduced – as average time for decisions is more than one year
A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK, the home secretary has said.
As it currently takes, on average, more than a year to reach a decision on asylum appeals, the government plans to set up a new independent panel focused on asylum appeals to help reduce the backlog.
Home Secretary Yvette Cooper said “completely unacceptable” delays in the appeals process left failed asylum seekers in the system for years.
There are about 51,000 asylum appeals waiting to be heard.
The new independent body will use professionally-trained adjudicators, rather than relying on judges.
Ministers are introducing a new 24-week deadline for the first-tier tribunal to determine asylum appeals by those receiving accommodation support and appeals by foreign offenders.
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But they believe the current tribunal system, which covers a wide range of different cases, is still failing to ensure failed asylum seekers can be returned as swiftly as possible, nor can it accommodate a fast-track system for safe countries.
It comes amid protests about the use of hotel accommodation for migrants.
The home secretary said the overhaul would result in a system which is “swift, fair and independent, with high standards in place”.
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She said: “We inherited an asylum system in complete chaos with a soaring backlog of asylum cases and a broken appeals system with thousands of people in the system for years on end.
“That is why we are taking practical steps to fix the foundations and restore control and order to the system.
“We are determined to substantially reduce the number of people in the asylum system as part of our plan to end asylum hotels.
“Already since the election, we have reduced the backlog of people waiting for initial decisions by 24% and increased failed asylum returns by 30%.
“But we cannot carry on with these completely unacceptable delays in appeals as a result of the system we have inherited which mean that failed asylum seekers stay in the system for years on end at huge cost to the taxpayer.”
Official figures released earlier this month showed a total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
‘Waving immigrants through even faster will not fix the problem’
Chris Philp, the shadow home secretary, said: “I think this goes nowhere near far enough.
“The underlying rights, which allows most illegal immigrants to stay here, are not changing. Simply waving illegal immigrants through even faster to full housing and welfare rights will not fix the problem.”
Chris Philp
He added: “Immigration judges will still apply ever expanding common-sense defying definitions of ECHR rights to allow foreign criminals and illegal immigrants to stay here.”
But the Liberal Democrats have been more positive in their response, with shadow attorney general, Ben Maguire, saying: “A faster application process would mean that those with no right to be here are sent back swiftly and those who do have a valid claim can get a job, integrate and contribute to the community.”
Asked for his thoughts on the policy, immigration lawyer Harjap Singh Bhangal told Sky News that it “definitely sounds like some sort of solution”.
He pointed that the backlog of asylum seekers waiting for a decision is “huge”, around 51,000 people – and that during this time, they are not allowed to work.
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A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK.
He said: “The equivalent would be saying that imagine if A-level students this year sat the exams and were told ‘well, hold on, you’re not going to get your results for two years’ time. But in the meantime, you can’t go to university.’
“You’d have mayhem, and it’d be pandemonium in the street. You’d have broken people idle with nothing to do. Essentially, this is what’s happening to asylum seekers.”
He added that one of the reasons it takes so long for cases to be heard is because asylum seekers have to represent themselves in court, which can mean upwards of half a day is spent translating and explaining everything to them.
Mr Bhangal also said the immigration system is “broken”, because “they take ages to make a decision which could be made in one week”.
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