Reform plans to scrap Pip disability benefit in £50bn welfare overhaul

Reform UK has unveiled a plan to end Personal Independence Payments (Pip) for working-age individuals, which could result in the removal or modification of benefits for 2.89 million people, according to the party's Treasury spokesperson Robert Jenrick. The party aims to cut £50 billion from the UK's benefits bill, affecting nearly three million individuals through a package of significant savings. Jenrick emphasized that these changes will secure the system for those who genuinely need it for the foreseeable future.

The proposed reforms would also require companies to provide insurance coverage for employees who take extended sick leave, with businesses employing more than five people needing to take out such insurance. This move is intended to encourage employers to adapt workplaces and support their employees' return to work. Jenrick claimed that this policy would be cost-neutral for businesses, as a reduction in National Insurance contributions would offset the additional expense.

Critics, including Labour, have dismissed Reform UK's proposals as "fantasy economics" that would strip support from disabled people while shifting costs onto employers. Labour has outlined its own reform agenda, which includes narrowing the gap between Universal Credit standard and health rates, restoring face-to-face assessments, and investing £3.5 billion in employment support to prevent people from being "signed off and written off."

The Timms Review, which is examining the future of Pip, concluded that the benefit is no longer suitable for its intended purpose. The final report, including recommendations, is expected to be published in the autumn. Workshops are scheduled in September and October to gather input from disabled individuals and those with long-term health conditions to shape these recommendations before they are released.