The spring statement – what it means for you?

PIP assessment review 

A review of the PIP assessment process will take place. 

End of work capability assessment in 2028 

The work capability assessment will be replaced by extra financial support for health conditions, available through the PIP assessment instead of the universal credit system.  

This means that additional income will be based on the severity of health conditions or disabilities, not the ability to work. 

No penalties for job trials 

People claiming sickness benefits will be able to try a new job without immediately losing their benefits. 

Delaying access to universal credit for those under 22 

Ministers are considering delaying access to the health element of universal credit until age 22, with savings reinvested into work support and training programs. 

More frequent PIP reassessments 

Many PIP claimants will be reassessed more frequently, with more face-to-face assessments. But reassessments for those with lifelong conditions or who are unable to work will end. 

Jobseeker’s allowance (JSA) and employment support allowance (ESA) to merge 

JSA and ESA will be merged into a new unemployment insurance system. This will be paid at a higher rate without having to prove you can’t work, but people who’ve worked will get more than those who haven’t. 

£1bn investment in employment support 

The DWP will provide ‘tailored and personalised’ support to help sick and disabled people who are able to work find employment. 

Tax and spending announcements  

No changes to taxes for now  

The chancellor confirmed that there will be no tax increases or reductions at this time. Any potential changes to tax rates will be postponed until the autumn. 

Government spending cuts 

To balance the budget, the government has announced spending cuts across various departments. 

The civil service will bear the brunt of these cuts, with government operating costs expected to be reduced by 15% by the end of the decade. This could lead to around 10,000 job losses.  

Unions have warned that these cuts will affect public services, making it harder for the public to access necessary services. 

National living wage increase 

Millions of workers will benefit from a pay increase next week. From 1 April, the national living wage will go up by 6.7% to £12.21 an hour. 

This will be worth £1,400 a year for an eligible full-time worker. 

Meanwhile, the national minimum wage for 18 to 20-year-olds will go up by £1.40 to £10 an hour.  

This record increase will boost the pay of full-time younger workers eligible for the rate by £2,500 a year. 

This was one of several policies announced by the chancellor during her autumn budget last year.  

Criticism of welfare reforms  

Many charities, including Citizens Advice, Scope, Mind and Trussell Trust, have criticised the government's planned welfare reforms. They argue that cuts to benefits could push 700,000 more disabled households into poverty.  

While the charities support the goal of helping more disabled people into work, they believe there is little evidence that cutting benefits will achieve this.  

They have called on the government to reconsider the cuts, warning that the costs could be too high. 

What’s Money Wellness’s response?  

We see first-hand how financial pressures are affecting people across the UK.  

Responding to the spring statement, Rebecca Lamb, our external relations manager said:  

“While today’s spring statement included some positive measures - such as the OBR forecasting that households will be £500 a year better off - rising bills are expected to offset these gains within 12 months.”  

Lamb noted how reforms to PIP have raised concerns among claimants, with many seeking urgent advice on what the changes could mean for them.  

“We’ve seen a significant surge in people looking for help. Analysis of our data shows that interest in PIP and the number of people seeking advice have more than tripled in recent days,” she said.  

We’re also disappointed that there was no extension to the household support fund. Set up to help struggling low-income households by providing grants for essentials, this support is due to end on 31 March.  

“This fund has been a crucial lifeline for many struggling families and its removal could leave some without urgent financial support,” said Lamb.  

Reach out for support if you need it 

If you’re in finding it hard to make ends meet, there are steps you can take. 

Use our minimum wage calculator to find out if you're being paid the correct national minimum wage or national living wage.  

It’s also worth making sure you’re on top of how much money is coming in and going out by using our budget planner. 

Meanwhile, make sure you’re getting all the help you qualify for with our free benefits calculator. 

Finally, if you’re finding it hard to manage your debts, then find out how we can help. 

As Rebecca Lamb said: “With the cost-of-living pressures still affecting households, ensuring people have access to clear guidance and financial help is more important than ever. We’ll continue to provide advice and support to anyone worried about these changes and their financial situation.”