UK DWP rolls out major benefits reforms and pension scheme overhaul

The Department for Work and Pensions (DWP) is reviewing the Personal Independence Payment (PIP) system, with experts warning that the current application process is the biggest barrier for claimants. The review, led by minister Sir Stephen Timms, is considering a shift to means‑tested payments to curb rising costs, though critics note the risk of adding complexity.

In a separate announcement, the DWP confirmed a one‑off £150 winter energy‑bill rebate for households receiving Income‑Related ESA, Income‑Based JSA, Pension Credit or Universal Credit, extending the Warm Home Discount until 2030/31 as part of the £15 billion Warm Homes Plan.

The Department also increased the carers’ addition to the Pension Credit, adding up to £48.15 per week – roughly £2,503 a year – for pensioners who provide adult care, on top of the state pension and standard credit.

Meanwhile, the Cabinet Office said it will bring the civil‑service pension scheme back in‑house after outsourcing to Capita led to service failures, with some 1.7 million members experiencing delays of up to a year and 17,000 relatives of deceased claimants facing hardship. The move follows a report labeling the outsourced service “unacceptable”.