An Inside Look at the Welfare Reform Bill 2025 with our Revenues and Benefits Trainer, Emma
When news of the Welfare Reform Bill broke, I felt a surge of anxiety. As a parent of twins with special educational needs and disabilities (SEND), our lives are already a careful balancing act — emotionally, physically, and financially. The fear? That the scaffolding holding us up would be dismantled. But after reading the bill in detail, I’m feeling something I didn’t expect: cautious optimism.
As a trainer for escalla delivering courses on Welfare Benefits, Housing Benefit, and Council Tax, I also needed to understand the impact from a professional angle.
Here’s my snippet and basic breakdown of the bill.
PIP: Stricter, But Still Standing. From November 2026, qualifying for the daily living component of PIP will require scoring at least four points in one activity, rather than scoring cumulatively.
But there’s relief: PIP won’t be means-tested - It will still rise with inflation - And a new 13-week transitional payment helps soften the blow for rejected claims. Even more promising, the government is asking disabled people and advocacy groups to help shape the future PIP assessment.
Say Goodbye to JSA and ESA: The bill introduces a new unemployment insurance scheme, replacing Jobseeker’s Allowance and Employment Support Allowance. People who’ve contributed will get £138/week, with added support for those with health needs.
Universal Credit: Some Cuts, Some Gains - Top-up rates for new claimants will be cut - Basic rates will rise (above inflation) - A new premium for long-term health conditions is on the way, though details are still unclear.
Delaying Benefits for Young People. There’s also a plan to delay incapacity payments until age 22 — a response to the 249% increase in young claimants since the pandemic. The savings are earmarked for job training and support.
Goodbye, WCA: The Work Capability Assessment will be phased out by 2028, replaced by PIP assessments for extra support, simplifying a complex and often stressful experience.
A “Right to Try” - Without Penalty: Perhaps the most thoughtful addition: a new right to try work without losing benefits if the job doesn’t work out. This could be a game-changer for people who want to work but fear the consequences if they can’t sustain it.
Final Word: This bill walks a tightrope: pushing people toward work, but still offering crucial support for those who can’t. It’s not perfect. But it’s not the cliff-edge I feared either. We’re all navigating this together.
At escalla, we offer training courses for Housing Associations, Local Authorities, and Charities in Financial Assessments, Debt and Revenues, and Benefits. Find out more via the button below:
