What a Reform government could mean for benefits

Reform UK has vowed to deliver the “biggest cuts to the benefits bill ever seen”, raising fresh questions over what a Nigel Farage-led government could mean for millions of claimants.

The party has had a focus on reducing welfare spending, tightening rules around eligibility and overhauling disability benefits, arguing that the current system is too costly and discourages work.

There are currently over 24 million people claiming some combination of Department for Work and Pensions (DWP) benefits, which includes pensioners, those on health-related support and in-work claimants.

This year, the Government is forecast to spend around £330bn on the social security and welfare system in the UK – roughly what it raises via income tax in its entirety.

In April, Farage said Reform UK would announce “the biggest cuts to the benefits bill ever seen in this country” and at the same press conference, the party’s Treasury spokesperson Robert Jenrick claimed the party had identified £40bn in savings.

Reform UK has outlined several cuts it wants to make, though disability campaigners are concerned that there is a lack of clarity on some of the details.

Below is a run down of what we know so far, and what we still don’t know about the party’s plans.

Benefit cuts for foreign nationals and immigrants

Reform UK outlined that all foreign nationals, “eventually also including those with EU settled status”, would lose the right to claim welfare after a three-month notice period, which it says would save up to £10bn a year on universal credit alone.

The Brexit withdrawal deal, signed by previous prime minister Boris Johnson back in 2020, meant that EU citizens living in the UK before the end of 2020 would keep their rights to claim benefits, including UC – which is a means-tested payment for those who are unemployed, on a low income or unable to work due to illness or disability.

Data from last summer shows this group made up around 1 in 10 of all those claiming UC.

Reform UK says it would end this practice and also eventually stop those with settled status – an immigration status granted to some European citizens allowing them to live, work and study in the UK indefinitely – from claiming too.

It also said foreign nationals would also face an increased immigration health surcharge – essentially a a fee to access the NHS charged to most non-British nationals, which currently stands at £1,035.

Anand Menon, professor of European politics and foreign affairs at King’s College London, argued that the EU would likely respond forcefully to any UK move to withdraw rights from EU citizens. In his view, such actions could prompt Brussels to suspend parts of the withdrawal agreement and the trade and co-operation agreement – the two treaties that underpin post-Brexit UK–EU relations.

Changes to PIP

Reform UK has also said it would end personal independence payments (PIP) for those “with non-serious anxiety cases”, moving those claimants onto a fast-track to work programme and would mandate face-to-face assessments for the benefit.

PIP is designed to help people with long-term physical or mental health condition or disabilities with their living costs, with the payment being worth up to £194.60 per week.

Some PIP claimants, and those claiming several other benefits, can also use a scheme called Motability if they have a disability or illness that makes it hard for them to get around.

The scheme enables people to exchange their qualifying government-funded mobility allowances to lease a brand new car, but it has come under some criticism for the perceived luxury of some of the vehicles available. Labour has already announced some cuts to the scheme including removing some types of car from the scheme.

Reform UK said it would downscale the scheme in that only “non-luxury vehicles” would be available and “exclusively for those who actually need them”.

There has been some criticism of some of the changes announced by Reform UK.

Ian Greaves, from charity Disability Rights UK, said that the introduction of face-to-face assessments seemed unnecessary.

“In truth, mandatory face-to-face assessments are a waste of taxpayer’s money. Most of the medical information relevant to someone’s claim can be obtained from the NHS,” he said.

Reinstating the two-child limit

Reform UK says it would reinstate the two-child limit for UC in full, which it says would save £3bn by 2029-30.

The two-child limit was a policy that restricted UC and child tax credit payments to the first two children in a household, but Labour repealed it this year, meaning families can now claim the child element of universal credit for all children.

Reform UK has had multiple different policies on the issue in recent times. Last year, party leader Nigel Farage said scrapping the cap was “not a silver bullet” and later said the cap would only be lifted for working British families.

But, the policy now appears to be to reinstate it for all families.

Greaves added: “The reintroduction of the two-child cap would be a disaster for so many families. Remember that the cap also applies to families in work. Families just struggling to get by will be plunged into debt, others already in debt will face an even bleaker future.”

Uncertainty concerning charities

Though Reform UK has outlined some policies, campaigners are also concerned about other changes it could make to benefits in order to fund its tax-cutting agenda.

The party has been clear that it wants to cut taxes – with a key pledge being scrapping VAT on energy bills – and experts know that doing so could require spending cuts.

Greaves said: “Reform UK has a clear tax-cutting agenda, so it reasonable to assume that they will be keen to slash the benefits budget, if they were to assume power.”

He added: “Since they have promised to maintain the triple lock to pensions, the cuts will have to come from the incomes of working-age claimants. As half the benefits budget goes on pensions, the cuts will be harsh.”

Una Summerson, head of policy and campaigns at Contact, said there was currently “very little detailed policy information” about Reform UK’s plans, beyond the announcements it had made.

She also said the general direction of rhetoric was concerning for families.

“Families with disabled children fear increasingly hostile rhetoric around disability benefits and vulnerable groups being pitted against one another,” she explained.

“Any reforms focused primarily on reducing welfare spending, without improving support and access to health, social care and employment services, risk pushing more disabled families into crisis rather than improving long-term outcomes,” she added.

Could Reform UK row back?

There is some disagreement between political experts and campaigners as to whether Reform UK could end up rowing back on some if its policies if it came to power.

Stephen Barber, professor of global affairs at the University of East London, said he was sceptical about the sincerity of some of the party’s suggestions.

He explained: “I think we need to be cautious about treating Reform’s proposals as if they are a coherent welfare programme.

“As a populist party, Nigel Farage’s Reform is driven by the desire to identify and magnify grievances […] rather than developing serious policy proposals which tackle identifiable problems.”

Others argued the welfare system urgently needs reform as spending on health and disability-related benefits continues to rise sharply.

Joe Shalam, policy director at the Centre for Social Justice, said public frustration over welfare spending had grown significantly.

He said: “The public is ready for bold action here. They can see the costly scandal of so many young Brits being parked on out-of-work benefits alongside runaway immigration sending the bill soaring.

“By restoring the principles of UC and making work pay, ministers could save billions for hard-working taxpayers and, even more importantly, transform the lives of thousands of people written off on the margins.”