Reform UK proposes £50bn welfare overhaul and benefit cuts

Reform UK has unveiled a major welfare overhaul aimed at reducing the national benefits bill by £50 billion. The proposal includes abolishing Personal Independence Payments (PIP) and the health component of Universal Credit for working-age adults. Under the plan, a new Health Security Allowance would provide cash support exclusively to those deemed “gravely ill and severely challenged.”

For individuals with less severe conditions, direct cash payments would be replaced by disability support accounts managed by local councils and mayors. These accounts would be used for specific costs such as equipment, transport, and home adaptations. Additionally, the party proposes that employers pay a “return to work cover” insurance to fund the first two years of an employee's absence due to sickness.

Further measures include a ban on almost all welfare payments for foreign nationals, including EU citizens with settled status. Reform claims this would save an additional £21 billion annually. Critics, including the Labour Party and various advocacy groups, have described the proposals as “fantasy economics” and warned they could target the most vulnerable and disrupt Brexit-related agreements.