What the Autumn Budget 2025 means for disabled people

The Chancellor, Rachel Reeves, announced the Autumn Budget on 26 November. The Budget is the government’s. plan for spending and taxes for the year ahead. We’re sharing details of the key announcements and what they mean for disabled people.

Changes to Personal Independence Payment (PIP) reviews

The Department for Work and Pensions (DWP) will extend award review periods for PIP. This means that some claimants will be reassessed less frequently. This will start from April 2026. Claimants will still be able to ask for a review sooner if they want to.

We hear from disabled people all the time about how difficult reassessments for PIP can be. And for people whose circumstances haven’t changed, they can feel unnecessary. More reassessments can also mean longer waits for new claimants’ first assessments.

Longer award periods will mean fewer unnecessary reassessments. We welcome this change. This will mean less stress for PIP claimants. And will help to reduce waiting times for new claimants.

PIP will go up with inflation from April 2026.

Changes to Universal Credit

The government has said that Universal Credit (UC) will go up with inflation from April 2026.

The government has also removed the two child benefit cap. Currently, parents can only claim Universal Credit or Tax Credits for two children. After the cap is removed, claimants will be able to receive benefits for more than two children. The cap will end in April 2026.

We welcome this decision. This will take hundreds of thousands of children out of poverty. And prevent more disabled families from being pushed into poverty in the future.

More Work Capability Assessments

DWP will carry out more Work Capability Assessments (WCAs). This is only for current Universal Credit claimants. This means disabled people on Universal Credit will have their award reviewed more often.

The DWP paused WCA reassessments during the coronavirus pandemic. This means that many disabled Universal Credit claimants have not had a review for some time. This has created a backlog of reassessments.

We know that WCAs can be stressful for disabled people. Many people have told us how their Work Capability Assessment did not accurately capture their needs. Or their ability to work.

More reassessments could create more stress for some disabled people. But some people are missing out on the right support because they have not been able to get reassessed.

We want the government to make sure that they only carry out reassessments where needed. So that more disabled people are able to get the right support at the right time.

We want to see the government work with disabled people to improve assessments for disability benefits. Including through the Timms Review of PIP. We want the government to fully involve disabled people in any changes they make.

You can find out more about the Timms Review on our website.

Changes to energy bills

The government has announced changes to energy bills. They expect these changes to save households £150 on their bills from April 2026.

These changes come from cutting some levies paid on energy bills. These levies fund environmental and social programmes. The government are removing the Energy Company Obligation (ECO) scheme. This means that energy suppliers will no longer be offering efficiency upgrades. Like insulation or new boiler installations. This will take effect from 31 March 2026.

The government are also taking 75% of the Renewables Obligation (RO) off energy bills. They will fund this through general taxation instead. But it’s still unclear how this will work for households.

The government will also provide an extra £1.5 billion to tackle fuel poverty through the Warm Homes Plan. But there is no detail about whether this will replace the ECO scheme after March 2026.

In October, the government extended the Warm Home Discount. 3 million households on means-tested benefits are now eligible. But disability benefits such as PIP and DLA (Disability Living Allowance) are still not included.

We worry these changes fail to address the extra costs disabled people face. The government must make it clear whether the Warm Homes Plan will replace the ECO scheme. And ensure schemes like the Warm Home Discount include disabled people.

Changes to Motability

The government has announced changes to the Motability scheme. These include removing the VAT exemption for vehicles with Advance Payments. The government is also adding Insurance Premium Tax to insurance for Motability vehicles. These changes will not affect Wheelchair Accessible Vehicles (WAVs).

What is Motability?

Motability is a scheme where disabled people can lease a vehicle or powered mobility aid. People receiving the enhanced rate of the mobility part of PIP can use this to pay for a Motability car.

You can find out more about Motability on our website.

Adding VAT means that Advance Payments will go up. Not all Motability cars need an Advance Payment. But for many people, this will make leasing a Motability car more expensive.

There are also some changes to mileage limits and overseas breakdown cover. These changes may help to reduce the impact of VAT changes. Motability will work with disabled people to understand the impact of these changes. And they will not announce more changes until they have done an impact assessment.

There will be no changes to current leases.

There are some details about these changes that we do not know yet. We are expecting more information in spring 2026.

We understand that these changes are worrying. And that they will increase costs for disabled people using vital accessible transport. If you have any concerns about your lease, you should contact Motability.

A new Youth Guarantee for young people

The government have announced a Youth Guarantee for young people on Universal Credit. This will give paid work placements to people aged 18 to 21 on Universal Credit. But only after they have been looking for work for 18 months.

Work placements will be for 25 hours of work per week and last for 6 months. Young people on these placements will earn minimum wage. There will also be support for young people throughout their placement. The government will announce more details about how the scheme will work later.

It is not clear yet how eligibility for the Youth Guarantee will work. Or what support for young people on the scheme will look like. Previous announcements said that young people could face sanctions if they do not take part. We also do not yet know whether disabled young people will be eligible for the scheme. Or what adjustments will be made for disabled young people on the scheme, either.

This lack of clarity around the Youth Guarantee is worrying. Disabled young people need access to the right adjustments. So they are not pushed into unsuitable jobs. The government must make sure the scheme is voluntary. And free of sanctions for eligible young disabled people.

Additional employment support

The government confirmed access to 1,000 specialist employment advisors. They will support disabled people who claim out-of-work benefits. This includes an expanded Connect to Work programme in England and Wales. This announcement is not new.

Connect to Work offers voluntary, specialist support for disabled people to find employment. It provides an opportunity for disabled people who can and want to work to access the support they need. And help to remove barriers to employment.

The government must ensure employment support is designed to remove barriers to work. Any form of employment support delivered by the DWP must be voluntary. And free from the risk of sanctions. Communication must be clear to avoid confusion or distress.

What has Scope said about the Budget?

James Taylor, Director of Strategy at disability equality charity Scope, said:

“Disabled people will breathe a sigh of relief that further welfare cuts haven’t been announced today.

“It is also the right decision for disability benefits to rise in line with inflation.

“But cuts to the health element of Universal Credit are still in the pipeline and that’ll make life harder for disabled people.

“Life costs more if you are disabled, transport, energy and equipment all come with a hefty price tag.

“The government must work with disabled people to make sure any future reforms create an equal future with disabled people.”

Notes

If you’d like to stay up to date with future communications on these announcements or find out what action you can take:

• Follow Scope on social media on Facebook, Instagram, X and TikTok.
• Sign up to our campaign emails.

If you are concerned about any of these issues, you can get in touch with Scope's helpline. We provide free, independent and impartial advice and support on issues that matter to disabled people and their families.

If you are concerned about your energy, you can get in touch with Scope’s DES service. We provide free energy and water support for disabled people and their families across the UK and Wales.