On a visit to a jobcentre in south London, the work and pensions secretary Pat McFadden declared that the government must stop “simply writing a cheque” for health and disability benefit claimants. His message was clear: the welfare state is about to change, and the focus will shift from handing out payments to helping people get into work.
McFadden, who leads the Department for Work and Pensions, said the government was preparing a renewed push for welfare reform. “I don’t believe government fulfils its responsibilities simply by writing a cheque. I think we owe people more than that,” he told the Guardian. But he also stressed that for people who can never work, the system must always be there for them. The question, he said, should no longer be “what benefits are you entitled to?” but “how can we help you live the fullest life?”
“Explains the government's welfare reform plans, including key reviews of disability benefits and youth worklessness.”
This renewed effort is being shaped by two major government-commissioned reviews. The first is the Timms review of disability benefits, led by the Labour MP Stephen Timms. Its interim report, published in July 2026, concluded that Personal Independence Payment (PIP) – claimed by nearly 4 million people in England and Wales – was “not working”. The report called for “bold and radical proposals” to overhaul it. The second is the Milburn review into youth worklessness, led by Alan Milburn. Its first phase, published in May 2026, urged a “whole system reset” involving welfare, schools, and employers to tackle the fact that more than one million young people are now out of work or education.
These reviews highlight deep-rooted problems in the UK’s welfare system. The number of people claiming PIP has roughly doubled since 2019, with the total passing four million for the first time earlier in 2026. The cost of health-related benefits is rising rapidly, putting pressure on public finances. Meanwhile, the previous attempt by the government to cut the welfare bill by £5bn failed spectacularly when more than 120 Labour MPs signed a rebel amendment, forcing a humiliating partial U-turn. McFadden has hinted that a fresh attempt at reform is needed, but it will have to avoid the same political backlash.
Why does this matter for UK readers? For anyone receiving benefits, or likely to need them in the future, the changes could be significant. The government is signalling a shift from cash payments to employment support – a move that could affect millions of people with health conditions or disabilities. For taxpayers, the rising welfare bill is a key driver of government spending, and reforms could either reduce costs or require more investment in job support. The reviews have already heard that the PIP application process can feel “dehumanising”, “soul destroying”, and “degrading” – so there is pressure to make the system more humane.
Q: What is Personal Independence Payment (PIP)? PIP is a benefit that helps with everyday tasks and extra living costs for people with a long-term physical or mental health condition or disability. It is the main disability benefit in England and Wales, with nearly 4 million claimants as of 2026.
Q: What is the Milburn review? The Milburn review is an independent report commissioned by the government to examine why more than one million young people are out of work or education. Its first phase called for a “whole system reset” involving welfare, schools, and employers.
Q: Why did the government’s previous attempt at welfare reform fail? In 2025, the government tried to cut the welfare bill by £5bn but faced a backbench rebellion from more than 120 Labour MPs. It was forced to make a humiliating partial U-turn to avoid defeat. McFadden now wants to try again with a different approach.
The final reports from the Timms and Milburn reviews are expected in autumn 2026. McFadden has already started working with the Department for Education and the Department for Health on a government response. The challenge will be to craft a plan that reduces the welfare bill without provoking another rebellion – and that genuinely helps people into work while protecting those who cannot work.