Reform UK Proposes £50 Billion Welfare Bill Reduction
Reform UK proposed abolishing Personal Independence Payment and parts of Universal Credit to save £50 billion, sparking criticism from Labour and Conservative opponents.
The political party Reform UK has proposed a comprehensive welfare overhaul designed to reduce the national welfare bill by £50 billion. The plan targets £22 billion in savings from disability benefits by abolishing the Personal Independence Payment (PIP) and the health element of Universal Credit for working-age adults. In their place, the party suggests disability support accounts managed by local councils and mayors for lower-level conditions, while creating a Health Security Allowance for those who are gravely ill and severely challenged.
Reform estimates that 2.89 million people would see their payments modified or withdrawn, while 2.16 million would retain full entitlements following a three-to-four-year reassessment period. To incentivize employment, the proposal also requires employers to fund return-to-work cover for the first two years of sick leave.
Opponents have dismissed the plan as a distraction from an ongoing investigation into a £5 million donation to party leader Nigel Farage. The Labour Party characterized the proposal as fantasy economics, claiming it relies on stripping support from disabled people. Shadow Work and Pensions Secretary Helen Whately of the Conservative Party also criticized the move, suggesting Reform UK had previously been absent from the welfare reform debate.