1.3M People at Risk of Losing Sickness Benefits Under New DWP Plan – The UK government is planning a major shake-up of sickness benefits, with 1.3 million people at risk of losing financial support under the Department for Work and Pensions (DWP)‘s new welfare reform. The changes, which focus on tightening the Work Capability Assessment (WCA), are designed to reduce the welfare bill but could leave many vulnerable individuals without the assistance they rely on.

The proposed changes have sparked debates across political and social circles, with critics arguing that the reforms could push many disabled individuals and long-term sick people into financial hardship. Meanwhile, supporters of the policy insist that these reforms will encourage more people to enter the workforce and help reduce dependence on government aid.
In this article, we will break down what these changes mean, who will be affected, and what steps individuals can take to prepare.
1.3M People at Risk of Losing Sickness Benefits Under New DWP Plan
Key Information | Details |
---|---|
Affected Individuals | 1.3 million people at risk of losing sickness benefits |
Main Change | Stricter Work Capability Assessment (WCA) rules |
Potential Loss | Up to £5,000 per year for some disabled individuals |
Government’s Goal | Reduce welfare spending by £3 billion, with £1.3 billion cut from disability benefits |
Who Will Benefit? | 1.3 million low-income workers eligible for new sick pay guarantee |
Additional Support | Employment training programs, mental health support, and job placement assistance |
Impact on Businesses | Companies may need to restructure their workforce policies to accommodate changes |
Next Steps | Affected individuals should seek advice from disability support organizations and stay updated on policy changes. |
The DWP’s new plan will have major consequences for 1.3 million people, especially disabled individuals and those with long-term illnesses. While the government aims to cut welfare spending, these changes may leave thousands struggling financially.
If you are affected, take proactive steps: stay informed, seek professional advice, and prepare for reassessments.
For official updates, visit the UK Government’s DWP website
What Is Changing in the Sickness Benefits System?
1. Tighter Work Capability Assessments (WCA)
The WCA is used to determine whether someone is eligible for sickness benefits like Employment and Support Allowance (ESA) or Universal Credit. The government plans to introduce stricter criteria, meaning fewer people will qualify.
- Current System: If someone is found to have limited capability for work, they may receive additional financial support.
- Proposed Changes: The bar will be raised, meaning fewer people will be classified as unable to work, potentially cutting their benefits.
- New Criteria: The new assessment rules are expected to include stricter requirements on physical and mental health conditions, mobility limitations, and work potential.
2. Financial Impacts on Disabled Individuals
Many people who currently receive sickness benefits could lose up to £5,000 per year if they are reassessed under the new criteria. The government argues that this will encourage more people to enter the workforce, but critics fear it will leave vulnerable individuals without essential support.
A major concern is that the most affected groups include those with mental health conditions, chronic illnesses, and severe mobility issues. Disability charities have warned that forcing individuals into work without proper accommodations could lead to increased stress, worsening health conditions, and higher rates of financial instability.
3. Sick Pay Guarantee for Low-Income Workers
In response to criticism, the Labour Party has introduced a new sick pay guarantee that will provide 80% of wages from day one for 1.3 million of the UK’s lowest-paid workers. This will particularly help those earning below £123 per week, who currently receive no statutory sick pay.
Source: The Guardian
4. Impact on Employers and the Job Market
Employers may need to adjust their hiring and sick leave policies as more workers become eligible for sick pay. The government is also investing in employment support programs to help those reassessed under WCA find suitable jobs. These programs include:
- Job placement services
- Training programs for disabled individuals
- Workplace accommodations for those with long-term conditions
- Mental health and counseling services
Source: UK Employment Support Programmes
Who Will Be Affected?
Groups Most at Risk
- Disabled Individuals and Those with Long-Term Health Conditions
- Many people with mobility issues or mental health conditions will find it harder to qualify for benefits.
- Universal Credit Claimants on Health Grounds
- Those currently receiving additional support due to illness may be reassessed and deemed fit for work.
- Individuals Who Rely on ESA
- Some claimants may need to move onto Universal Credit, which could mean financial losses.
Who Will Benefit?
- Low-income workers who previously did not qualify for sick pay will now receive 80% of their wages if they fall ill.
- Job seekers and individuals reassessed under WCA may have access to government-funded employment training and placement programs.
- Employers may receive financial incentives to hire individuals reassessed under WCA.
£108 Weekly DWP Payment Approved for March 2025: Are You Eligible with These 57 Conditions?
Eligibility for £549 Weekly State Pension Released by DWP – Check Payment Date
FAQs
1. When will these changes take effect?
The reforms are expected to be introduced in the next budget cycle. Keep an eye on official announcements.
2. Will I automatically lose my benefits?
Not necessarily. However, you may need to undergo a new Work Capability Assessment to determine continued eligibility.
3. How can I check if I still qualify?
Visit the DWP website or consult with a benefits advisor.
4. What if I disagree with the decision?
You have the right to appeal. Seek help from Citizens Advice or legal aid services.
5. Where can I find help?
Organizations like:
- Citizens Advice (citizensadvice.org.uk)
- Scope UK (scope.org.uk)
- Turn2Us (turn2us.org.uk)