Reform UK Proposes £50 Billion Welfare Overhaul

The Reform UK party has proposed a comprehensive overhaul of the welfare system designed to reduce the national benefits bill by £50 billion annually. The plan centers on abolishing Personal Independence Payments (PIP) and removing health-related payments from Universal Credit for working-age adults. In their place, the party would introduce a Health Security Allowance for those who are gravely ill or severely challenged, while other claimants would receive support for verifiable costs through programs managed by local councils and mayors.

Treasury spokesperson Robert Jenrick estimates that 2.89 million people would have their payments modified or withdrawn following reassessments over a three-to-four-year period. The proposal also includes a shift in sick pay responsibility, requiring businesses with more than five employees to purchase insurance or fund return-to-work cover for the first two years of sick leave, a model based on the Dutch system. To offset these costs, Reform UK suggests cutting employer National Insurance contributions.

The plan has faced immediate backlash from opposing parties. The Labour Party dismissed the projected savings as fantasy economics, arguing the plan strips support from disabled people. The Conservative Party characterized the proposal as a half-baked policy, with Shadow Work and Pensions Secretary Helen Whately claiming the announcement was an attempt to distract from a parliamentary standards investigation into a £5 million donation received by Reform UK leader Nigel Farage.