Reform UK proposes welfare overhaul, aiming to save £50 billion

Reform UK plans to completely overhaul the welfare system if it gains power, with a proposal that could save the UK over £50 billion. Treasury spokesman Robert Jenrick announced the plans while writing for The Telegraph, describing the existing welfare framework as a "moral and economic catastrophe." The announcement comes as the party gets ready to unveil a comprehensive 50-page plan on Monday, which Jenrick claims would be the most significant redesign of the welfare system in a generation.

The proposed changes would particularly impact the disability benefits program, which Jenrick estimates could save £22 billion. Nearly three million claimants would see their payments modified or withdrawn under these reforms. The plans focus on reducing reliance on health-related Universal Credit (UC) payments and Personal Independent Payments (PIP). Instead, local councils and mayors would manage funds to address needs such as transport and equipment for those with lower-level health conditions.

To encourage a return to work, the proposal includes a new incentive for employers to reintegrate employees who have been on sick leave. Those who have not returned to work within two years would undergo a rigorous, in-person disability needs assessment to help identify fraudulent claims. Jenrick anticipates that approximately 2.16 million current claimants will retain their benefits in full, while about 2.89 million may see their payments altered or stopped entirely.

The plan has drawn criticism from Labour, which described Reform UK's £50 billion savings claim as "fantasy economics." A Labour spokesperson argued that the proposal would strip vital support from disabled individuals and shift financial burdens onto employers. They emphasized that Labour’s welfare reforms aim to deliver credible savings backed by independent assessments. As the debate over welfare reform intensifies, the implications of Reform UK's proposal could reshape the landscape of support for the vulnerable in the UK.