Funds unveiled to help sick and disabled into work as welfare reforms become law

Tens of thousands more sick and disabled people will be given support to get into work, the Government has said as its welfare reforms formally passed into law.

The Universal Credit Act was given royal assent on Wednesday, after what Work and Pensions Secretary Liz Kendall has previously acknowledged was a “bumpy ride” which saw controversial wider reform plans watered down in the face of a Labour revolt.

Earlier this summer, the proposed legislation had elements to restrict eligibility to Pip scrapped, with any changes postponed until after a review which is being led by disability minister Sir Stephen Timms.

The Government has insisted their welfare reforms have been driven by a desire to end a situation where people became dependent on benefits rather than working.

The Universal Credit Act will see the basic universal credit standard allowance rise at least in line with inflation until 2029/30.

But the health part of the benefit will be reduced for new claimants after April 2026, unless they have a severe or terminal condition, and the rate frozen until 2030.

On Thursday, the Department for Work and Pensions announced a £338 million investment into its so-called connect to work programme which it said will give 85,000 people – who are sick, disabled or face complex barriers to work – localised, tailored support in 15 areas across England.

People can be referred by healthcare professionals, local authorities and voluntary sector organisations – or by themselves – to get personalised help including coaching from employment specialists, job matching services and ongoing support when in work.

Areas covered by the funding include London, South Yorkshire and Greater Essex.

The Government said around 300,000 people across all of England and Wales will benefit from the scheme over the next five years.

Ms Kendall said: “For too long, millions of people have been denied the support they need to get back to health and back to work.

“It’s bad for their living standards, it’s bad for their families, and it’s bad for the economy.

“That’s why we’re taking decisive action by investing millions of pounds so sick or disabled people can overcome the barriers they face and move out of poverty and into good, secure jobs as part of our Plan for Change.”

Published: 04/09/2025 by Radio NewsHub