Reform UK plan would overhaul welfare system with £50bn in savings

Reform UK has outlined plans to completely overhaul the UK's welfare system, with treasury spokesman Robert Jenrick stating that such a move could result in savings of over £50 billion. The party's proposed changes would see significant cuts to the disability programme, potentially withdrawing or modifying payments for nearly three million claimants.

Instead of Universal Credit (UC) and Personal Independent Payments (Pip), the party would invest in alternative support such as talking therapies, physiotherapy, and employment assistance. People with lower-level conditions would no longer receive payments, with local councils and mayors providing necessary support like transportation and equipment.

Employers would also receive incentives to help employees return to work after a period of sickness. Those claiming benefits for over two years without returning to work would undergo a single, in-person disability needs assessment to prevent fraudulent claims. A new payment would be established for individuals deemed gravely ill and severely challenged.

Jenrick emphasized that these changes would not be easy, stating that abandoning young people to welfare would be a form of neglect. The party has previously pledged to cut the benefits bill by billions to offset the costs of maintaining the triple-lock state pension. A Labour spokeswoman criticized Reform UK's claim, calling it "fantasy economics" and arguing that the party's plans would strip support from disabled individuals while shifting costs onto employers.

In March 2025, the government attempted to tighten disability assessments but was forced to backtrack due to opposition from Labour MPs. Disability Minister Sir Stephen Timms recently published an interim report suggesting that Pip was "not fit for purpose" and required fundamental changes. Jenrick also criticized the Conservative Party's proposals, describing them as "paper thin" and stating that they would save more than double the £23 billion claimed by Kemi Badenoch's party.

The Tories have proposed £23 billion in welfare savings through measures like restricting benefits to UK citizens and ending sickness benefits for less severe mental health conditions.