New reforms could hit disability claimants hardest

THE UK GOVERNMENT has unveiled a major reform of the welfare system, aiming to save £5bn by 2030 through stricter eligibility rules for benefits such as Personal Independence Payment (PIP) and Universal Credit (UC). With 19.5% of households in Pembrokeshire claiming Universal Credit, these changes could have a significant impact locally, particularly for disabled residents.

However, early analysis suggests PIP claimants will be hardest hit. While Universal Credit recipients will see some structural changes, including the scrapping of the Work Capability Assessment (WCA) in 2028 and a permanent above-inflation rise, PIP recipients face much tougher eligibility criteria, potentially disqualifying around a million people nationwide.

Local impact on Pembrokeshire

With 26% of its population aged over 65—one of the highest proportions in Wales—and above-average disability rates, Pembrokeshire could be disproportionately affected. Many residents rely on PIP to supplement low wages or provide financial support when work is not an option.

Pembrokeshire’s economy is heavily dependent on seasonal work, tourism, and public services, with 14% of workers self-employed—many in physically demanding jobs. Health and disability benefits play a crucial role for those unable to work year-round.

Key changes announced

Universal Credit (UC)

• Above-inflation increase – Payments will rise permanently to £775 per month by 2030.
• Work Capability Assessment scrapped (2028) – Future assessments for extra support will be through PIP instead.
• Right to Try – Claimants will be encouraged to return to work without immediately losing benefits.
• Under-22s lose incapacity top-up – Young people will no longer qualify for an additional health-related payment, a move designed to deter school leavers from going straight onto benefits.

Impact: Universal Credit claimants face mixed consequences. The removal of WCA could reduce stress for those with long-term conditions, and higher payments may help some households. However, the removal of incapacity top-ups could create financial hardship for young disabled claimants.

Personal Independence Payment (PIP)

• Stricter eligibility rules – Claimants must score at least four points in one category to qualify for PIP’s daily living element.
• Up to one million people could lose support – Early estimates suggest a significant number may no longer qualify.
• No means-testing (yet), but tougher assessments – Changes may disproportionately affect those with mental health conditions and fluctuating illnesses.

Impact: Many disabled residents in Pembrokeshire may struggle to qualify for PIP, which in turn affects their Universal Credit top-ups. Those with mental health conditions, long COVID, or conditions such as multiple sclerosis and fibromyalgia may face difficulties meeting the new criteria.

What does this mean for Pembrokeshire?

• Higher risk for disabled claimants – With an aging population and a significant number of residents on disability benefits, many may lose essential support.
• Rural and seasonal work challenges – Physically demanding jobs in tourism, construction, and agriculture mean PIP is crucial for those unable to work due to health conditions.
• Potential rise in hardship – Child poverty in Pembrokeshire is already one of the highest in Wales (24.7%). If PIP claimants lose financial support, demand for food banks and social services could increase.

Local perspective

Pembrokeshire has a lower-than-average employment rate (73.8%) and high self-employment (14%), meaning many workers lack stable income or sick pay. The county also faces social care pressures, with 641 adults receiving domiciliary care. If PIP eligibility tightens, many claimants could lose both disability payments and their health-related UC top-ups, leaving some without financial support entirely.

Responding to the Government’s Green Paper on Welfare reforms, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “You don’t get more people into work by slashing support for disabled people who need it.

“If we are to reduce the welfare bill, we need to focus on prevention and get serious about fixing health and social care in Wales, alongside improving mental health treatment provisions.

“Far too many people in Wales are left deteriorating on extreme waiting lists, unable to work and often become sicker while they wait for treatment.

“We are also concerned that the Chancellor’s budget is failing to create new jobs for people to join, with the national insurance rise contributing to job losses and hiring freezes across Wales.

“This is in addition to the fact that in many former industrial parts of Wales, jobs that were lost have never been replaced which is why we need a real economic strategy to breathe new life into these communities.”

What happens next?

The government has launched a Green Paper consultation on the reforms. However, with Labour facing internal criticism over the changes, further amendments could still be made before they take full effect.

Have your say

The Herald wants to hear from Pembrokeshire residents:

• Are you worried about losing your benefits?
• Do you think the “Right to Try” scheme will help you get back into work?
• How will these reforms impact your household?

Email The Herald with your views.

Final verdict

Pembrokeshire at higher risk – With a high disability rate, older population, and reliance on seasonal work, the county may see a rise in financial hardship due to these reforms.r say

Universal Credit claimants – Some may benefit from higher payments and no longer facing Work Capability Assessments, but young disabled people will be hit hardest.

PIP claimants – The biggest losers. Many may lose their entire benefit due to stricter scoring rules, which in turn affects their UC top-ups.

We want to hear from Pembrokeshire residents affected by these changes. Are you worried about losing your benefits? Will the new support help you get back into work? Email The Herald with your views.