Major PIP and Blue Badge update to claimants as welfare reforms unveiled

PIP claimants who have been left in the dark for months about how the government's welfare changes may impact their Blue Badge and free bus travel have finally been given an answer.

The Department for Work and Pensions (DWP) has assured that individuals who receive Personal Independence Payment (PIP) and access additional support services — including the Blue Badge scheme — through the benefit will not be affected by the upcoming welfare reforms, which are now set to come into place in 2026. Work and Pensions Secretary Liz Kendall confirmed the news during a statement on Monday, June 30, reports the Daily Record.

Here, Ms Kendall set out the government's commitment to protecting the entitlements of the 3.7 million people currently receiving PIP payments of up to £749.80 a month. She made it clear that no existing claimant will see their benefits reduced or removed as a result of the planned reforms - but critics are still concerned the upcoming changes could have a detrimental impact on those in need.

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After delivering a statement in Parliament, Ms Kendall addressed questions from MPs about the potential consequences of changes to PIP eligibility for the existing claimants. Dr Lauren Sullivan, Labour MP for Gravesham, asked for clarification regarding the future of PIP as a way of accessing further support services.

"As I said in my statement, existing PIP claimants will continue to have that benefit," Ms Kendall replied. "It will not be affected even if they have a reassessment, and neither will all the passported benefits. Carer's Allowance is the best known, but all passported benefits will be included in that protection."

Following a backlash from Labour backbenchers and disability advocates, the government made some key changes to the proposed welfare reform Bill. The new, tighter eligibility standards for PIP will now only apply to new applicants from November 2026 onward.

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Ms Kendall told Parliament: "We will now ensure the new four-point requirement will only apply to new claims from November 2026. This means no existing claimants will lose PIP because of the changes brought forward in this Bill, and existing claimants of passported benefits like carer's allowance will continue to get them too."

Also, no changes to PIP eligibility will be implemented until a thorough and comprehensive review of the assessment process is completed. This review, led by Sir Stephen Timms in partnership with disability groups and charities to ensure that any future changes to the welfare system are informed by the needs of disabled people, and carried out in a fair and transparent manner, is expected to be completed by Autumn 2026.

So there will be no changes to PIP and Blue Badge privileges for existing claimants. The stricter rules will only apply to new applicants from November 2026, with any changes coming after a comprehensive review.

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