The government has confirmed plans to replace New Style Employment and Support Allowance (ESA) and New Style Job Seekers Allowance (JSA) with a new 'unemployment insurance' benefit. More details are expected in the autumn budget on Wednesday 26 November. It's already been reported that the current benefit system cannot remain unchanged without leading to higher taxes or cuts in other public spending.
Key dates for welfare reform
| Benefit | Reform date |
|---|---|
| Statutory Sick pay (SSP) | April 2026 |
| Universal Credit (UC) | April 2026 |
| Personal Independence Payment (PIP) | Autumn 2026 |
| Work Capability Assessment (WCA) | 2028/2029 |
| New Style ESA and New Style JSA | 2028/2029 |
Statutory Sick Pay (SSP)
From April 2026, changes will include:
- no waiting period of 3 sick days
- no minimum earnings threshold (currently £125/week)
- payment will be whichever is lower: 80% of wages or the flat rate (currently £118.75/week)
Universal Credit (UC)
Health element changes
- From April 2026, the extra monthly payment for those with serious health issues will drop from £423.27 to £217.26 for most new claimants
- Existing claimants assessed before 6 April 2026 will not be affected
- Higher payments will still apply FOR those who are terminally ill or meet 'severe condition criteria'
Other changes
- From 2027/2028, claimants must be aged 22 or over to qualify for the new health element
- Between 2026 and 2029, the basic UC allowance will increase above inflation
Personal Independence Payment (PIP)
PIP supports people with long-term health conditions or disabilities.
Assessment changes
- Plans to restrict eligibility based on scoring were dropped after lobbying
- Future changes will follow the Timms review, due in NOVEMBER 2026, which will be developed with disabled people and advocacy groups
Trends and proposals
- PIP APPLICATIONS have increased significantly, especially for mental health conditions like anxiety and depression
- A proposal to raise the age for moving from disability living allowance to PIP (from 16 to 18) is under consultation
Work Capability Assessment (WCA)
Currently used to assess eligibility for extra UC payments based on ability to work.
Planned changes (2028/2029)
- WCA will no longer determine extra UC payments
- Instead, eligibility will be based on the PIP daily living component
- Special consideration will be given to groups like cancer patients or those at substantial risk if required to work
Unemployment Insurance Benefit
From 2028/2029, new style employment support allowance and new style job seekers allowance will be replaced by a new unemployment insurance benefit. This benefit will:
- be paid at £140.55 per week (same as the higher rate of new style ESA)
- be time-limited
- not require a health assessment
- only be available to people who meet national insurance contribution conditions
- be available to both employed and self-employed people
Depending on whether someone is claiming due to unemployment or sickness, they will be expected to look for work or have regular discussions with jobcentre staff about any barriers to employment.
Winter fuel support
Warm Home Discount Scheme for winter 2025/26
The Warm Home Discount Scheme helpline opens on 27 October 2025: 0800 030 9322
The scheme provides a £150 rebate on electricity bills for eligible low-income households in Great Britain. Eligibility is based on your circumstances on 24 August 2025.
You may qualify if:
- you receive pension credit (guaranteed credit) and are the named account holder with a participating electricity supplier (in England, Wales or Scotland)
- you receive other means-tested benefits and are the named account holder with a participating electricity supplier (in England or Wales)
If you might be eligible, you'll receive a letter by January 2026 with more information. Visit Gov.uk - Warm Home Discount Scheme for details.