Autumn statement 2025: How the budget will affect disabled people
The government has announced its latest Budget, which outlines its plans for the economy, including changes to taxation and spending.
Some of the measures included in the Budget have previously been announced.
Scope will be analysing Budget documents over the coming days to identify the full impacts for disabled people. This article will be updated with more detail.
Here are the main points so far of how disabled people will be affected:
Changes to the Motability scheme
- VAT will be added to new leases from July 2026.
- More expensive cars, such as BMW and Mercedes will be removed from the scheme.
Changes to Benefits
- The PIP award review periods will be extended, meaning less frequent reviews for some claimants.
- The rate of working-age benefits is increasing in line with inflation from April 2026.
- The 2-child benefit cap will be removed from April 2026.
- The number of Work Capability Assessments (WCA) and face-to-face UC health assessments are increasing. This means that those unable to work may face more frequent assessments to get out-of-work benefits.
Employment Support
- Anyone who is disabled and claims out-of-work benefits will have access to 1,000 specialist advisers and tailored support to find work.
- A Youth Guarantee scheme will guarantee eligible 18 to 21-year-olds a six-month paid work placement from 2026.
Energy Costs
- Households are expected to save £150 on energy bills from April 2026 because of some changes to levies. Levies are charges included in energy bills to fund environmental and social programs.
- The government will provide an additional £1.5 billion capital investment to tackle fuel poverty through the Warm Homes Plan.
- In October, the £150 Warm Home Discount was expanded to a further 3 million of the poorest households on means-tested benefits.
You can read more here:
Comments
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Its a bit of a disappointing budget.. While I'm no expert economist if feels like another 'pander to power of the banks' event.
The whole political situation in the country is deeply concerning at the moment…1 -
The state this country is in is concerning, edging towards a failed State according to experts!
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It attacked the disabled again , the motability deposit will more expensive , and although i never have had a merc BMW etc I think it is wrong to take these away from the scheme , PIP isn't an out of work benefit and every pound of enhance PIP goes to the lease of a vehicle , they are not free . So it just seems unfair to target motability .
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Can i ask what happened to equality and what if that person has already worked through their disability all their lives ?
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If you think it is then fine , but there was a lot of fuss not too long back about making sure disabled people are not singled out in any way , this seems to be a huge U turn.
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wow.
that really comes across VERY badly
yes disabled people DO deserve to have the same standard of living just because they have no choice but to claim something to survive.
....
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“Motability isn’t about luxury — it’s about independence. People give up their mobility benefit to lease a car that meets their needs. Some higher‑end models were included because they had the right adaptations, not because they were status symbols. Equality means disabled people should have access to safe, suitable transport, not be limited to the cheapest option.”
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Remember people working 40+ hours a week, 50+ weeks a year, are having to make considerable sacrifices to afford luxuries.
They lose time with partner, kids, friends, etc. They often have to travel long distances outside of working hours. People working physical jobs will be damaging their physical health over the years, ending up in more and more pain and reduced mobility. And most jobs cause constant stress, which we all know majorly impacts physical and mental health over the years.
And after all that they'll still have to choose between a nice car or a holiday or home improvements, when they've been working hard and making all those sacrifices to earn their money.
No-one is making constant sacrifices to get PIP. Yes the claim process is horrible for most of us, but we don't have to go through that every day of every week of every year to get PIP payments.
I also disagree with the justification of 'it's not our fault we're disabled'. Well it's not working people's fault either, so why should their taxes be used to pay for things for us that they can't afford themselves?
I can see both sides of this, and am always trying to read more and more opinions to make the most balanced view that I can myself. As I see it, everyone should have access to basics such as food, warmth and shelter. But beyond that, I don't think any person with a disability and/or on benefits has any more right to luxuries than a working person does.
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Well said and yet nobody is questioning why they need everything funded by the tax payer .
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It's how the BMW is seen or perceived by the hard working taxpayers that can't afford a BMW too... You ask that you are not singled out?
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Also on BBC, Sky
Why cant they leave us alone
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It looks to be young people. They can't leave it because the Benefit cost to the country is unsustainable. Have seen the latest numbers from the DWP? Nearly 8m on UC alone, up from 5.3m in 2022. PIP at 3.8m, up from 2m in 2020. That is just two benefits, what about ESA and DLA? The numbers are increasing too. PIP at an all time high for applications and awards per month. Totally unaffordable and every political party has plans to reform. You can't put the taxes up on working people anymore, they have had enough. I've lived a long time and I have never seen numbers on benefits anywhere near this high currently - ever. Hopefully disabled won't be targeted. There are a lot of youngsters on benefits because you get more on the sick than working on the national living wage. It has been like this for years and has been proved by a professional organisation working on behalf of the government. I have read it. It's been on SKY news too they ran a programme on young people in a town with high unemployment and the youngsters stated they get paid more on the sick. They talked to a few that were on PIP too... They get in a rut and never get off benefits.
You asked and that is my thoughts....
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I just can’t watch Starmer again bashing the disabled.. does he realise that some of us worked for decades before disability, that we paid taxes and mortgages etc?? Yes young people need help, anyone who has never worked or been to college / apprenticeship needs help.
Yet they sporadically forget the state of available mental health services in the country or waiting lists for joint replacement etc. Jobs have to be real and meaningful for young people or they won’t stay in work. The cynic in me thinks they’ll target family support for the 18-25 year olds? If Mum and Dad have to pay for their kids because benefits stop then those kids may have no alternative but to join an apprenticeship scheme or get a job pronto. These kids may even find themselves homeless?I just hope there is proper diagnosis of severity of disability and ongoing treatment available. I don’t see that in place at the moment😞1 -
I've skimmed through a few articles removing paywalls, they all say similar a combination of what we already know and specifically mentioning the young and Milburn review, seems their continuous obsession with the under 22s will not abate and they'll pay for the child caps removal.
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That is the dilemma! I have read if the youngsters aren't in college or work, they have to attend a meeting. Additionally, a member that seems to have left states in the green paper you will need to work with a work coach to keep your benefits.
In the bigger picture, face to face appointments are starting again, some people need to be seen and assessed. A lot got benefits on a phone call COVID time fast tracked. I was assessed at my house twice by an assessment company.... Can you do this? Can you do that? Can you try and do this please, please get up from the seat etc etc. These face to face have stopped too and need to start again.
How they will decide who stays on and who doesn't I don't know.
The benefit bill is heading to cost £100bn a year, that is colossal and according to all political parties unaffordable!
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I don't know, I just have a read from time to time, but the information I quote is from reliable sources.
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My figures don't include the state pension for a start. There will always be some differences in figures from different organisations. Your figures are quoting it is already over £100bn. The Europeans have got back to economic levels prior to COVID we haven't. I am not a parrot by the way so keep it pleasant. We will see if the country can afford the current benefit bill when the reforms start won't we and they are coming as you well know....
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You have called me a government parrot previously and you are quoting it now. My figures are slightly different, probably only looking at ill health benefits. No matter, it is unaffordable currently and we will have to accept changes. People want the funds going to the NHS not to youngsters that are on the sick because they get more money. Example - LCWRA being removed from 22 years olds and younger!
Europeans have got back to economic levels prior to covid, people back to work and economics growing. UK hasn't as numbers on the sick and not working since covid has increased dramatically, get the picture?
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I don't think I have caused an issue, in fact I am a moderator on another forum. I will stop discussing the issues with the Benefit system as it is an emotive issue. I was only trying to put forward reasons, I have investigated, for the so called reforms.
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