How will the 2025 budget affect those with chronic illness and disabilities
- Mia Hughes
- Dec 1
- 5 min read
The 2025 UK budget (and associated welfare reforms) will have significant effects on many people who are chronically sick or disabled. Some changes may help some people, but many others face increased risk of benefit cuts, stricter eligibility, or reduced support. Below I summarise what is changing, who is most affected, and what disabled / chronically ill people should be aware of.
What the 2025 Budget / Reforms do for Disabled / Chronically Ill People
The government says it will keep support for people “with the greatest needs.” Those with severe, lifelong disabilities are meant to remain protected under the new rules.
The state plans to increase the standard rate of working-age benefits (for new and existing Universal Credit claimants) above inflation starting in 2026–27.
According to some disability-support organisations, certain reforms were moderated after campaigning — for example, frequent reassessments for long-term conditions may be reduced for some recipients.
So for some individuals — especially those with clearly severe and long-term conditions — there remains structural support, and certain benefits will be uprated or maintained. Government guidance often refers to "severe lifelong disabilities as:
A. People with the highest levels of impairment
Those who require:
Daily help from another person
Continuous supervision
Full-time care
Help with most daily living activities
B. Those with irreversible, permanent conditions
Conditions with no possible cure and little chance of functional improvement.
C. Individuals for whom reassessments are not normally required
This group usually includes:
Adults with severe congenital disabilities
People with degenerative neurological conditions
People unlikely ever to work or live independently
This is why some PIP claimants get ongoing awards with 10-year “light touch” reviews. Here are some examples of disabilities the government typically classifies as "severe and life long".
Mobility / Physical:
Wheelchair users (permanent)
Severe rheumatoid arthritis
Limb paralysis
Spina bifida
Motor neurone disease
Advanced multiple sclerosis
Severe muscular dystrophy
Cognitive / Learning Disability:
Severe learning disability / IQ below 50
Severe autism / nonverbal autism
Genetic conditions causing lifelong impaired functioning
Sensory:
Registered severely sight-impaired (blindness)
Profound bilateral hearing loss (for certain criteria)
Neurological:
Severe epilepsy uncontrolled by medication
Advanced Parkinson’s disease
Traumatic brain injury with permanent impairment
Other lifelong conditions:
Severe heart or lung disease with chronic functional impairment
End-stage kidney disease
Conditions causing severe fatigue and inability to function (advanced CFS/ME in rare cases)
What’s Changing — And What’s Risky for Many
🔹 Stricter Eligibility for Personal Independence Payment (PIP)
From November 2026, claimants must score at least 4 points in a single daily-living activity to qualify for the “daily living” component.
That means many people whose disability affects them across several daily tasks — but perhaps modestly in each — may fail the new threshold, even if overall their condition significantly limits quality of life.
Estimates suggest that between 800,000 and 1.2 million people may lose PIP entitlement by 2029–30 under the new rules.
🔹 Cuts to Health-Related Support in Universal Credit (UC) for New Claimants
For new claimants requiring health-related support, the “health element” of UC will be reduced and frozen — at £50 per week, sharply lower than today’s rates.
This means that if you rely on UC because you cannot work due to illness/disability, income support will drop significantly for many new applicants.
🔹 Risk of Benefit Loss or Reduced Support for “Less Severe / Fluctuating” Conditions
People with moderate, fluctuating, or less clearly defined disabilities (e.g. some mental health conditions, chronic pain, mobility issues that vary day to day) are at particular risk under stricter scoring systems.
Some may lose access not only to PIP, but also to linked supports — housing-benefit reductions, care services, council tax reliefs, and other support that depends on disability-benefit status.
🔹 Increased Pressure on Social Services & Local Care — More Risk of Gaps
Cuts or reduced eligibility may shift burdens from individuals onto local councils, NHS, and social-care systems. Several think-tanks warn this could lead to higher costs, wait times, and reduced availability of care if benefits are withdrawn.
For carers (family or informal), loss of PIP in the person they care for may also mean loss of eligibility for Carer's Allowance — reducing household income sharply.
🎯 Who Is Most Likely to Be Affected — and Who Might Be Safer
At highest risk:
People with moderate, fluctuating or multiple impairments that affect several daily-living tasks, but not severely enough in any single area to meet the new PIP threshold.
People applying for benefits for the first time after 2026 — new claimants face the stricter criteria.
Those relying on the health-related element of UC (especially new claimants) — income support may drop significantly.
Carers or families dependent on linked benefits (housing subsidy, tax reductions, carer’s allowance) which may be lost if PIP is removed.
Relatively safer (for now):
Individuals with severe, long-term disabilities that clearly warrant high-need benefit levels (e.g. profound mobility impairment, need for substantial care).
Long-term existing claimants — some protections have been indicated for those whose conditions are unlikely to improve.
People who can provide strong, up-to-date documentation of their needs (medical reports, care assessments, mental-health evidence) — helps in reassessments under new rules.
🧾 What Disabled / Chronically Ill People Should Do Now (Practical Advice)
Check and update evidence of your disability or condition. Ensure your medical records, care needs, mobility limitations, daily-living difficulties are well documented — especially for fluctuating or hidden conditions.
If you’re on PIP, prepare for reassessment after the new rules come in. Be ready to show exactly which daily-living activities you struggle with, how often, and to what extent.
If you rely on UC health top-up, understand the potential changes (especially if you will be a new claimant) and plan accordingly.
Explore alternative support — local councils, charities, community support groups — in case benefit income reduces or disappears.
Budget carefully — benefit loss could be sudden and substantial. Try to build a financial buffer (if possible).
Advocate and stay informed — governmental reforms are still being shaped; engaging with charities, MPs, or support organisations might help influence outcomes.
🔮 My Outlook (Given 2025 Budget Trends)
The 2025 Budget and related reforms appear to represent a major tightening of the UK’s disability-benefits system. We have had signs through out this year that not only the Labour Government but also the Tory party have their sights firmly fixed on significantly reducing the cost of health and welfare benefits. While the government frames this as “focusing support on those with greatest need,” in practice many people with chronic illness — especially those whose conditions are complex, fluctuating, or not obviously severe — face real risk of lost income and support.
Many disabled people may find their quality of life — and financial security — under serious strain in the coming years and this is why it is all the the more important to have a well written form, put together by someone who understands the law as it pertains to benefit criteria but also associated case law. If you would like help with form writing or checking your DLA, PIP or Attendance Allowance form, then please get in touch. I offer a free 15 minute consultation to talk about your form writing or form checking needs. Please email maria@benefitiaforms.co.uk for or visit my website beneftitiaforms.co.uk more information.
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