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:
https://www.scope.org.uk/news-and-stories/autumn-statement-2025-how-the-budget-will-affect-disabled-people