The UK’s welfare system is heading for one of its biggest shake-ups in decades—and disability campaigners are warning that thousands could be left worse off. At the centre of the storm is the Department for Work and Pensions’ (DWP) plan to abolish the Work Capability Assessment (WCA), the test that determines whether claimants qualify for the Universal Credit health element and its associated work allowance.
According to a new Citizens Advice report, at least 50,000 disabled people stand to lose financial support. But leaked figures obtained under Freedom of Information laws suggest the real number could be far higher—closer to 400,000–500,000 claimants.
What the WCA Does Now
The WCA doesn’t just decide whether someone is “fit for work.” For those on Universal Credit (UC), it opens the door to the work allowance—a buffer that lets disabled people keep more of their earnings before benefits taper off.
- Standard UC claimants lose 55p in benefits for every £1 earned.
- UC health claimants with housing support can earn £411/month before deductions.
- Those without housing support can earn £684/month before deductions.
This design encourages part-time work and helps cover the extra costs disabled people face.
What Will Replace It
The government wants to scrap the WCA and merge assessments by using only the Personal Independence Payment (PIP) daily living component. In other words, eligibility for UC’s health element—and therefore the work allowance—would hinge on whether someone qualifies for PIP’s daily living support.
The issue? PIP and WCA measure very different things.
- WCA: Focuses on how illness or disability affects the ability to work.
- PIP daily living: Focuses on day-to-day needs like cooking, washing, or managing money.
Tens of thousands currently pass the WCA but fail to qualify for PIP daily living—meaning they could lose both their extra UC payments and their work allowance.
How Many Could Lose Out?
Citizens Advice estimates at least 50,000 people. But government data reveals a bigger risk:
- As of November 2023, 409,000 UC health claimants had been turned down for PIP daily living.
- A further 175,000 ESA claimants (soon to be moved onto UC) had also been rejected.
That’s up to 584,000 people who could be affected once the WCA is gone.
Research from the DWP shows that about 14% of these claimants are in work—suggesting 80,000 disabled workers could directly lose their work allowance.
What Campaigners Say
Dame Clare Moriarty, CEO of Citizens Advice, didn’t mince her words:
“The work allowance exists precisely because disabled people face additional barriers and costs when moving into employment. Restricting access to this support sends entirely the wrong signal about the value we place on disabled people’s contributions to the workforce.”
Charities argue that removing the WCA without protections will:
- Strip vital income from people already in low-paid, part-time jobs.
- Make it harder, not easier, for disabled people to move into work.
- Push some households into poverty, forcing them to cut back on essentials.
What the Government Says
The DWP insists its reforms will make the system “fit and fair for the future.”
- Ministers argue that tying financial support to “fitness for work” creates a cliff edge that discourages people from trying employment.
- The new model, they say, will “genuinely support those who can work into employment”—backed by a £3.8 billion employment support package.
- A ministerial review is also underway into the fairness of PIP assessments.
The department has admitted, however, that it is still considering safeguards for people who may lose out.
Why It Matters
Losing the work allowance can be the difference between keeping a job and dropping out of the workforce. For someone earning £600/month, the allowance can protect £200–£300 of income that would otherwise be clawed back.
Without it, critics say the system could trap disabled people in a cruel paradox: they’re told to work, but punished financially for doing so.
FAQs:
What is the work allowance in Universal Credit?
It’s the amount a claimant can earn before UC starts being reduced—£411/month for those with housing support and £684/month for those without.
Who currently qualifies for the UC health element?
People who pass the Work Capability Assessment due to disability or long-term health conditions.
How would scrapping the WCA change that?
Eligibility would instead depend on qualifying for PIP’s daily living component, which many current UC health claimants don’t receive.
