The Spring Statement Explained

On Wednesday 26^th March the Chancellor, Rachel Reeves, announced a series of welfare reforms that could leave some of our members worried and confused. Whilst this was not a major fiscal event, with no changes to taxes announced, many welfare reforms announced taking place over the next 5 years will effect hundreds of thousands of people for better or for worse.

Here we will explain what these changes are so you can better navigate the future of the benefits system.

Please note that the changes to Personal Independence Payments and Universal Credit, will not come into effect in 2025.

Personal Independence Payments (PIP) are given to those with long term physical or mental health condition or disability, and those who have difficulty doing certain everyday tasks or getting around because of their condition.

There are two parts to PIP, a ‘Daily Living’ for those that need help with everyday tasks, and a ‘Mobility’ part for those that need help getting around. The daily living part is paid at a standard weekly rate of £72.65 and the enhanced weekly rate of £108.55. The mobility part is paid at a standard weekly rate of £28.70, and the enhanced weekly rate is of £75.75.

PIP eligibility is assessed on sets of descriptors that assess a person’s ability to carry out basic activities, each being scored between 0 to 12. The activity scores are added up into one total score, and if you are scored between 8-11 points in total, you’ll get the standard rate daily living part. If you score 12 or more points, you’ll get it at the enhanced rate. The same goes for the mobility part. You must get 8 points in total to qualify for PIP.

The changes coming into effect from November 2026, would require a minimum score of 4 points from a single activity to be eligible, rather than points spread across multiple activities, even if you reach the minimum 8-point total score. For instance, if you met the 8-point total score minimum, but did so by scoring less than 4 across multiple activities, you would not be eligible for the benefit.

This could affect people with dementia. With vastly differing symptoms, people with dementia may not have difficulties focused in one activity area to qualify for support, despite having a range of difficulties across all descriptors. Additionally, with fluctuating dementia symptoms characterised by periods of improvement and decline, it could be difficult for PIP assessors to gauge the consistency and severity of the person’s condition.

Until the end of June the Government will open up the changes to consultation. We hope in this time that the changes can be adjusted to exclude those with dementia.

Universal credit is given to those who are on a low income, out of work or cannot work.

If you’re on Universal Credit then you could benefit from the changes, with 3.8 million current and future claimants set to be £420 better off on average by 2029-30 after taking into account the impact of inflation. Rises “above inflation” are set to begin from April 2026.

The health element which you get if you can’t work because of sickness or disability, will change for new claimants from April 2026, being almost halved from £97 a week to £50 a week, to be frozen at this level until 2029/30. For those with the most severe, life-long health conditions, they will see their income protected “through an additional premium”.

For current claimants of the health element, their rate will be frozen at £97 a week until 2029/30.

According to the Government’s own analysis, 2.25 million families who receive the health element will lose £500 a year on average by 2029, whilst 3.9 million other families who don’t get the health element, will gain an average of £265 a year by 2029.

Minimum wage will rise from April 1^st, from £11.44 an hour to £12.21 an hour.

And…

from April 1^st, many will be paying more for their energy, water, and council tax.

There will be many changes announced recently that may make us anxious, and for people with dementia and their carers, we’re here to provide support with navigating the complicated welfare system.

Contact us for more information.