What are the changes to PIP and other benefits? All the planned reforms to UK welfare system
The Labour government has unveiled a raft of plans for changes to the UK’s welfare system, which it says will save the UK a total of £5bn.
Work and Pensions Secretary Liz Kendall detailed the government’s planned reforms to the welfare and benefits system in the House of Commons.
Politics latest: Reaction as welfare system reforms announced
She made clear Labour’s motivation, pointing to the sheer cost of long-term sickness and disability benefits for working-age people, which has risen by £20bn since the pandemic and is forecast to hit £70bn over the next five years.
Here, Sky News looks at all the changes Labour plan to make to the welfare system.
Changes to eligibility for personal independent payments
PIP is a tax-free payment given to people aged 16-64 to help with the extra costs caused by long-term ill-health or disability.
There are two components of PIP: a daily living part designed for those who have a long-term physical or mental health condition or disability, and a mobility part, for those who have difficulty doing certain everyday tasks or getting around.
It’s possible to meet the criteria for one part or both parts, and payments vary for each.
Ms Kendall confirmed on Tuesday the government will change the criteria to reduce the number of people eligible for PIP.
The minister also confirmed the government will not freeze PIP – as reports had previously suggested – but instead make it harder to qualify from November 2026.
People will need to score at least four points in one activity to qualify for the benefit – a move that will require a change in law. This will not affect the mobility component.
All you need to know about PIP changes – read more here
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‘Government’s plan to cut welfare is terrifying’
Boost to standard universal credit
The government has pledged to raise the standard universal credit allowance by £775 in 2029/30.
Universal credit (UC) is available to those who are on a low income, out of work or cannot work.
The benefit is replacing the six you can currently claim – child tax credit, housing benefit, income support, income-based jobseeker’s allowance, income-related employment and support allowance, and working tax credits.
Alongside a hike in the basic rate of universal credit, Labour have pledged to “switch back on” reassessments after a significant drop in the number carried out in the pandemic.
However, the government said claimants with severe, lifelong disabilities will not usually face benefits reassessments.
Ms Kendall told MPs the government “will legislate to rebalance the payments in universal credit from April next year, holding the value of the health top up fixed in cash terms for existing claimants and reducing it for new claimants, with an additional premium for people with severe lifelong conditions”.
The minister said the government will consult on whether the health top up to UC should be delayed for those under 22, with the savings spent on work support and training opportunities.
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Welfare system ‘letting people down’
Scrap work capability assessments in 2028
It was confirmed that work capability assessments will be entirely scrapped in 2028.
Under the current system, those not fit for work are told they have limited capability for work related activity (LCWRA) – which means they will not receive employment support or further engagement from the system after their assessment, potentially locking them out of future work.
However, work capability assessments (WCA) will be scrapped altogether in three years’ time.
Ms Kendall said the WCA is “not fit for purpose”, describing the assessments as “complex, time-consuming and often stressful for claimants”.
Consider merging benefits into new ‘unemployment insurance’
The government has pledged to consult on merging jobseeker’s allowance and employment support allowance into a new, time-limited “unemployment insurance”.
This would be paid at a higher rate – and claimants would not have to prove they are unable to work in order to receive it.
Ms Kendall said: “So if you have paid into the system, you’ll get stronger income protection while we help you get back on track.”
This new “unemployment insurance” benefit would be created by merging jobseeker’s allowance – the benefit paid to people who are out of work but looking for a job – and the employment and support allowance, used for those with a disability or health condition that affects how much they can work.
Legislating for a ‘right to try’ initiative
Lastly, the government has vowed to legislate for a “right to try” initiative.
The minister told MPs this will guarantee that “work in and of itself will never lead to a benefit reassessment, giving people the confidence to take the plunge and try work without the fear this will put their benefits at risk”.
Opinion by: Georgii Verbitskii, founder of TYMIO
Memecoins have dominated the crypto narrative over the past year, leading to a series of high-profile events where most traders lost money while insiders profited. The Libra token alone, by some estimations, resulted in $4.4 billion in public losses. Unlike previous crypto cycles where broad market growth rewarded holders, today’s memecoin speculation has created an environment where the average trader’s chances of success are slim. How did memecoins happen to drive the market to a dead end, and will this ever end?
Speculation or investment?
Investing and speculation are fundamentally different games with distinct rules. Investing isn’t about making quick money. It is about purchasing the right assets to protect capital in the long haul. Usually, investors don’t wait for the right “entry point” but purchase assets to be held for years. Such assets grow relative to fiat currencies based on fundamental factors. For example, stocks, gold and Bitcoin (BTC) rise against the US dollar, which faces unlimited issuance and inflation.
Some assets have extra growth drivers — rising property demand, growing company profits or even Bitcoin adoption by governments — but these are bonuses. The key point is that your investment is not supposed to lose all its value against the fiat. Investors follow long-term macroeconomic trends, which helps them preserve purchasing power.
On the other hand, speculation is a zero-sum game where the skilled minority profits because of the uninformed majority. Typically, such people are chasing quick profits. This is what happens with memecoins. Unlike traditional investments, they lack intrinsic value, dividends or interest returns. While in the case of Bitcoin, the “greater fools” who buy after a trader could be companies adopting the Bitcoin standard, followed by entire nations establishing strategic Bitcoin reserves after the US, in the case of a token like LIBRA, the greater fool is the one who bought it after Javier Milei’s announcement on X. That’s it — there are no more buyers.
Unregulated gambling
Memecoins operate similarly to online casinos. They provide entertainment and promise quick profits but favor only those who create and promote them. Unlike regulated gambling, where risks are well-known, memecoins are often hyped by influential figures — starting from the famous crypto influencer Murad and ending with the US president — and, consequently, social media narratives. The harsh reality is that, like in a casino, the odds overwhelmingly favor insiders and early adopters while the majority suffer losses.
Recent: Solana’s token minting frenzy loses steam as memecoins get torched
The memecoin craze clearly thrives on speculation and psychological triggers — this is the game that evolves emotions and leaves players’ wallets empty. Platforms like Pump.fun, which facilitate memecoin launches, have reaped massive profits, proving that selling shovels is the best way to profit from a gold rush. How can opening a casino require a license and choosing a location in strictly designated areas, while anyone can launch their own memecoin?
Well, the situation is likely to change soon.
Will this ever end?
The lack of regulatory oversight has enabled the explosive growth of memecoins. How did we get here? Let’s remember the SEC’s activities in recent years, namely lawsuits against major decentralized finance (DeFi) protocols and large crypto companies that tried to play fair. Another serious step was Operation Chokepoint 2.0, directed by the previous US administration against the crypto industry as a whole. All this not only stifled well-intentioned companies that created something meaningful in crypto but also indirectly triggered a counterweight in the form of other players who took advantage of unclear rules.
As a result, crypto exchanges have recently been listing mostly memecoins almost immediately after their release. Chaos in the field of regulation has turned the crypto industry into a sizable global casino. While earlier, everyone hoped to win in this gamble, now, along with the losses, it seems that general disappointment is setting in.
There is a ray of hope. The current US administration can unequivocally be called “crypto-friendly,” which means we will likely see significant regulation progress this year. This is especially crucial for the DeFi sector, which has long found its product-market fit and is rapidly developing, capturing the markets of traditional finance (banks, brokers and other intermediaries).
It is essential to rewrite outdated financial regulations as quickly as possible. The old rules were designed for a system based on trust in centralized intermediaries, whereas the new framework must incorporate smart contracts — in other words, executable blockchain code.
Stronger regulatory frameworks could introduce stricter requirements for token launches, including mandatory disclosures of creators’ personalities and restrictions on centralized exchange listings.
Yet market participants may learn through costly mistakes even without direct intervention and become more cautious about memecoin investments. After a series of harsh but sobering memecoin rug pulls, the Web3 community should finally realize that such projects rarely reward risk-takers. If someone still decides to take a chance, they should treat it like a trip to the casino: only bringing the amount they are prepared to lose and making the most of the joy from this experience.
For those to whom this approach doesn’t appeal or those truly serious about growing their net worth to pass it on to future generations, welcome to the real world of bland, regular Bitcoin purchases. It seems the market is only now starting to realize this.
Opinion by: Georgii Verbitskii, founder of TYMIO.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Politics
Ex-minister Tulip Siddiq attacks ‘targeted and baseless campaign’ against her by Bangladesh authorities
Sir Keir Starmer’s former anti-corruption minister has accused the Bangladeshi authorities of a “targeted and baseless campaign” against her.
It is Tulip Siddiq‘s first significant response to a series of corruption allegations in Bangladesh, which saw her resign from the government in January.
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She quit after the prime minister’s standards adviser found her family’s links with the ousted Bangladeshi regime exposed the government to “reputational risks.”
A letter from Ms Siddiq’s lawyers to Bangladesh’s Anti-Corruption Commission (ACC) said: “At no point have any allegations against Ms Siddiq been put to her fairly, properly and transparently, or indeed at all, by the ACC, or anyone else with proper authority on behalf of the Bangladesh government.”
Her lawyers said the media has been “repeatedly used” to publish allegations “that have no truth”, setting out several examples that have led to an “ongoing targeted and baseless campaign”.
Ms Siddiq denies all wrongdoing, and says she has not been approached by the investigating authorities in Bangladesh.
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Tulip Siddiq has rejected the allegations against her. Pic: Reuters
‘Allegations have no merit’
Sky News previously reported that UK-based investigators were considering ways to help the Bangladeshi authorities.
The agency concerned, the International Anti-Corruption Co-ordination Centre (IACCC), is currently hosted by the National Crime Agency (NCA) and principally funded by the UK government.
In the seven-page letter sent by Ms Siddiq’s legal team, seen by Sky News, it is claimed the ACC “does not appear to be taking matters seriously”.
It goes on: “If it was, it would have been obvious to it that the allegations made against our client have no merit at all.”
What are some of the claims?
Ms Siddiq is the niece of the ousted Bangladeshi leader Sheikh Hasina, and it’s those familial links that were used as evidence in the claims against her.
Among the allegations disputed by Ms Siddiq are claims she illegally benefitted from a deal between Bangladesh and Russia for a nuclear power station.
Ms Siddiq’s lawyers say this is “absurd and cannot be true”, as the claims revolve around a property given to the Labour MP by a close family friend 10 years before the power station deal.
The letter also rejects claims Ms Siddiq committed fraud in Bangladesh over where she owned a home.
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Ms Siddiq’s team has told the ACC it must “immediately stop manufacturing false and vexatious allegations”, adding the agency’s methods “are an unacceptable attempt to interfere in UK politics”.
The letter goes on to request any further claims are put to them directly, instead of being publicised in the media.
In response, a defiant ACC said Ms Siddiq “has benefitted from the systemic corruption” of her aunt’s old party.
It said the MP has “spent most of her adult life residing in homes owned by cronies” of the party, the Awami League, and been “benefitted by corrupt property deals that her mother undertook”.
It said it would be in touch with her office “in due course”.
Sir Keir Starmer has revealed he is watching Netflix’s Adolescence with his family and supports a campaign for it to be shown in parliament and schools.
The drama, starring Stephen Graham, depicts the aftermath of the stabbing of a teenage girl – as a 13-year-old boy from her school is arrested for her murder.
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Graham and co-writer Jack Thorne have said they want it to be a show that “causes discussion and makes change”, after it was hailed by critics and topped Netflix’s charts around the world.
Asked by Labour MP Anneliese Midgley if he backs the creators’ calls for it to be aired in parliament and schools, Sir Keir said he does.
He told PMQs: “At home we are watching Adolescence. I’ve got a 16-year-old boy and a 14-year-old girl, and it’s a very good drama to watch.
“This violence carried out by young men, influenced by what they see online, is a real problem.
“It’s abhorrent, and we have to tackle it.”
Stephen Graham as Eddie Miller in Adolescence. Pic: Netflix
MPs want tougher action on online safety
Sir Keir’s commitment came as Sky News learned around 25 Labour MPs who want tougher action on online safety have formed an informal group and are due to meet next week.
It could pressure the government to take more radical steps, after a private member’s bill to raise the age of social media consent from 13 to 16 was watered down because ministers didn’t support the measure.
The changes were criticised by Thorne in a recent interview with Sky News, accusing the government of being “frightened of big tech”.
Johnathan Brash is among the MPs who backs showing Adolescence in parliament and schools, telling Sky News he found it “so powerful and distressing I immediately went upstairs and gave my son a hug”.
The Labour MP for Hartlepool, whose son is eight, said elements of the show could be shown in primary school “with discretion” so children understand the dangers before they are using social media.
He said he will raise the issue with officials at the Department for Education to ensure Sir Keir’s “extremely supportive” words are followed through on.
Mr Brash said the government must “protect children from an environment that is increasing hostile and dangerous”.
It comes after Sky News revealed teenagers are regularly being served up “horrific” content on social media apps, including violent and sexually explicit material.
Read more:
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Adolescence ‘holds mirror up to society’
Government ‘alert’ to ‘toxic influencers’
Speaking after PMQs, Sir Keir’s spokesman called Adolescence “an incredibly powerful programme that shows the threat of young men carrying out violence from seeing things online”.
“Insidious misogyny taking root will be tackled,” he added, though he did not say how.
He also said the government is “alert to and taking on” issues raised by Sir Gareth Southgate, after the ex-England manager hit out at “manipulative and toxic influencers” who trick young men into thinking women are against them.
The Online Safety Act, which is being implemented this year, is intended to protect young people from illegal and harmful content with fines for platforms who break the rules coming in this summer.
However, MPs from across the political spectrum want further action to tackle the amount of time children spend on their smartphones.
The Tories want the government to force teachers to ban smartphones from schools, with shadow education secretary Laura Trott revealing she is so concerned she won’t allow her children to have one until they are 16.
The government has resisted the measure, saying teachers already have the power to ban phones.
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