Autumn Budget 2026: What could happen to Universal Credit, PIP and other benefits?

Chancellor John Healey will lay out plans for government spending in the Autumn Budget taking place on 28 October 2026, including benefits such as Universal Credit and PIP.

It will be the first Budget under the leadership of Prime Minister Andy Burnham and the speech is set to cover everything from the amount of tax you pay each month to limits on benefits you can claim.

The Budget is always hotly anticipated because it can affect the finances of almost all British households - and indicate whether you will be set to feel better or worse off in the future.

Millions of people are reliant on the UK's welfare system so even small changes to policies can have a significant impact.

At the same time, government spending is getting lots of attention as borrowing costs move higher, so Burnham and Healey are expected to consider ways they can bring down the country's hefty welfare bill.

Here we look at what changes we could expect to the UK's benefits and welfare system in the Budget next month.

Does Andy Burnham want to cut PIP and Universal Credit?

The Prime Minister has signalled that he wants to reduce the UK's welfare bill, however, he has not singled out Universal Credit or PIP to be cut.

These two benefits make up a large part of welfare spending with more than 4million people now claim PIP.

The Prime Minister said that increasing the conditions required to receive benefits could be one way of changing current support but was not talking in relation to a particular benefit nor confirming this would happen.

Before becoming leader, Andy Burnham last year called on Labour MPs to vote down welfare reforms proposed under former Prime Minister Sir Keir Starmer.

Andy Burnham has also suggested the bill could be brought down by getting more people into work instead of claiming benefits.

He has previously said: "I would say is that there are people in the benefits system, young people in their 20s, who have been I would say quite seriously let down because the support wasn't there for them when it should have been there."

The government has recently expanded the Jobs Guarantee scheme and the prime minister seems to be considering more ways that young people can move into work rather than claiming benefits.

Separately, the Chancellor has also not ruled out tax hikes which is a way of helping fund government spending on welfare.

PIP, the Timms Review and the Budget

Changes to PIP are likely coming as the independent Timms Review is examining how the benefit and assessment works and whether changes are needed.

The Review was launched in October 2025 and an Interim Report last month said the system is no longer fit for purpose.

The final Timms Report is due to be published in the Autumn and the government will then consider its findings before making any changes.

It means the report could have concluded by the time of the Budget and if so the government could respond to or action any recommendations.

What should PIP and Universal Credit claimants do now?

It is understandable that uncertainty can create worry.

However, PIP and Universal Credit rules haven't changed so it's important not to panic and if you already claim either benefit, you can carry on as normal.

If you claim PIP, keep an eye out on developments from the Timms Review as it's likely to shape future policies.