The UK government has officially binned its plan to replace Personal Independence Payment (PIP) cash with vouchers. While that’s a big win for campaigners, don’t get too comfortable—there are still big changes on the horizon that could affect over a million people.
Whether you’re receiving PIP, caring for someone who does, or just trying to stay ahead of policy shifts, here’s what you need to know.
Table of Contents
Proposal
The controversial idea was first floated in 2024 by the Conservative government through a green paper titled Modernising Support for Independent Living. The idea? Scrap cash-based PIP and replace it with:
- Pre-paid cards restricted to disability-related purchases
- One-off grants for home modifications or specialist equipment
- Reimbursement schemes for expenses after providing receipts
Why the change? To reduce annual welfare spending by as much as £12 billion by 2030. But critics saw it as a move that would strip recipients of autonomy and complicate support access.
Backlash
The backlash was swift—and nearly unanimous.
Of the 115 disability organisations that responded to the public consultation, not a single one supported the move. Big names like Scope, Disability Rights UK, and Leonard Cheshire called it regressive and discriminatory. Here’s why:
Loss of Independence: Vouchers would remove choice, making it harder for individuals to tailor support to their personal needs.
More Paperwork: A reimbursement model means more admin, which could be overwhelming for many claimants—especially those with mental health or cognitive conditions.
Stigma: Using vouchers in shops or online could draw unwanted attention or signal someone’s disability status, leading to potential discrimination.
Reversal
In April 2025, newly appointed Work and Pensions Secretary Liz Kendall announced in Parliament:
“This Government will not bring in the Tory proposals for vouchers — because disabled people should have choice and control over their lives.”
That statement made it official. The voucher idea was dead. But while that particular change won’t happen, the PIP system is still in for a serious shake-up.
Reforms
Here’s a quick summary of what’s been scrapped—and what’s still coming.
| Aspect | Details |
|---|---|
| Voucher Scheme | Cancelled in April 2025 |
| New Eligibility Rules | Start November 2026 |
| Financial Impact | Up to 1.2 million may lose £4,200–£6,300 annually |
| Work Capability Assessment | Being abolished by 2028 |
| Universal Credit Top-Ups | May shrink by £2,400/year |
Target
Let’s rewind a bit—why was PIP targeted for reform in the first place?
PIP is a non-means-tested benefit that helps people with long-term conditions or disabilities. It covers two main areas:
- Daily Living: Things like washing, eating, dressing
- Mobility: Help with transport or getting around
Because PIP claims have grown steadily and it’s demand-driven, it became an obvious place to look for budget savings.
Criteria
From November 2026, new claimants must score at least four points in one daily living activity to qualify for that component of PIP.
That might sound fair—until you consider people with fluctuating or mental health conditions. Their symptoms often spread across different areas, but don’t hit the four-point threshold in any single one. That means people who currently qualify could be ruled out under the new system.
Abolition
Another major change is the end of the Work Capability Assessment (WCA)—set to be scrapped by 2028.
Going forward, PIP assessments alone will determine someone’s ability to work. That simplifies things on paper, but in practice, it raises the bar for accurate and fair assessments. If a single assessment goes wrong, a person could lose both their PIP and their Universal Credit support.
Impact
Take Sarah’s story.
Sarah is 38 and has multiple sclerosis. Some days are manageable, but others are filled with pain, fatigue, and cognitive fog. Right now, she gets both parts of PIP—£608.60 a month.
But under the new rules, she may not score enough in any one activity. She could lose the daily living component entirely, putting her down over £4,000 a year. That’s money she needs for personal care, assistive tech, and even specialist transport.
Preparation
If these changes might affect you or someone you support, here’s how to stay ahead:
- Follow Updates: Subscribe to DWP alerts or sign up to organisations like Scope or Disability Rights UK.
- Get Your Paperwork in Order: Collect recent medical reports, care plans, and any other supporting evidence.
- Seek Help: Reach out to Citizens Advice or legal aid services to know your rights and appeal processes.
The voucher plan may be scrapped, but with major PIP reforms still set to kick in from 2026, staying informed and prepared has never been more important.
FAQs
Is the PIP voucher plan still happening?
No, the Labour government scrapped it in April 2025.
When do the new PIP rules start?
Tighter eligibility rules begin in November 2026.
How much money could people lose?
Some could lose £4,200 to £6,300 a year.
What is replacing the Work Capability Assessment?
PIP assessments will take over by 2028.
Can I appeal if I lose my PIP?
Yes, through mandatory reconsideration and tribunal.
