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Understanding the impact of disability benefits reforms on local authorities Sweeping changes to disability benefits are set to affect millions of low income households across the UK. While some recent government concessions have softened the immediate impact, significant cuts remain on the horizon, with major implications for councils, NHS services and local support systems.

New analysis from Policy in Practice shows that around 2.9 million people will be affected by the reforms, with combined losses totalling up to £6.8 billion per year. Some households stand to lose as much as £9,000 annually. These losses are not evenly distributed, and some local authorities will be hit far harder than others.

The reforms also risk putting additional pressure on already stretched services. Mental health support, discretionary housing payments, and advice services are all expected to face rising demand as a result of this shift. For councils, understanding who will be affected and preparing early will be key to avoiding deepening hardship in their communities.

In response, Policy in Practice is using local level modelling to help councils forecast the financial and social impact of these reforms. By combining granular data analysis with policy expertise, local authorities can prepare for what's coming and act now to support their most vulnerable residents.

Join this webinar to explore:

- What’s changing with disability benefits and the current policy timeline
- Where the biggest financial impacts will be felt, based on new local modelling
- How councils can prepare and target support to reduce hardship and service demand
- Real world insights from local authorities already responding to these challenges

If you're working in a local authority, the NHS, or wider support services, this session will offer critical insight into a fast moving policy landscape and equip you with the tools to respond proactively and strategically.

With guest speaker Professor Jonathan Portes, Economics and Public Policy, King’s College London

27/8/2025

10:30am BST

1.3 hours

Missing out 2025: How organisations are closing the £23 billion unclaimed support gap

24/9/2025

10:30am BST

1.3 hours

Gravesham Borough Council uses LIFT to unlock £572,000 in water bill savings for vulnerable households through Southern Water partnership

Challenge

Increasing uptake of underclaimed social water tariffs

Solution

Data led partnership with Southern Water, powered by LIFT

Impact

Over £572,000 saved by 3,200+ vulnerable households

Figures correct at March 2025

“Using LIFT we are doing all we can to identify those most in need of support who may not even realise the seriousness of the situation they find themselves in… The money saved by those households transferring onto the Essentials Tariff will make a real difference for more than 3,000 families in the borough.”

Challenge

Across the UK, social water tariffs remain significantly underclaimed. Over 5 million eligible households miss out on £900 million in water bill support annually. Identifying and reaching those eligible for this vital assistance is a major challenge, particularly for water providers who do not have direct access to benefit data.

Gravesham Borough Council recognised this gap and saw an opportunity to make a difference.

Solution

Gravesham Borough Council used the Low Income Family Tracker (LIFT) platform from Policy in Practice to identify over 3,200 households on low incomes or in receipt of benefits who were likely eligible for water bill support.

Through a secure data sharing agreement, the council shared these households’ details with Southern Water, enabling the utility provider to automatically enroll eligible residents onto its Essentials Tariff. This social tariff reduces bills by at least 45% for households on low incomes or claiming Pension Credit, equating to an average annual saving of £177 per household.

Impact

£572,000 in total water bill savings
3,200+ households supported
Average saving: £177 per household per year
Automated enrolment avoided barriers to access
Increased trust through targeted, proactive support

This partnership is a pioneering example of how councils can work with utility providers to deliver direct financial support to residents, quickly, securely, and at scale.

The role of LIFT

Gravesham’s long standing use of LIFT has been instrumental in tackling poverty across multiple dimensions. With LIFT, the council has:

Reduced relative poverty: From 3,214 households (2,844 children) in April 2021 to 2,305 (2,378 children)
Increased Pension Credit take up: Over £356,000 annually
Allocated £914,000 in Household Support Funds
Awarded £130,000 in Council Tax support
Distributed £248,743 in discretionary energy payments

LIFT enables Gravesham to continually identify and engage households in need, ensuring support is timely, targeted and tailored.

Key takeaways for councils and utilities

Use LIFT to pinpoint eligible households: Eliminate guesswork and find those missing out on support
Establish data sharing agreements: Enable proactive enrolment into discount schemes
Tackle low take up of benefits and tariffs: Join up across sectors for maximum impact
Drive financial resilience locally: Deliver savings where they’re most needed

“By joining our Essentials Tariff, these customers will automatically receive a minimum discount of 45% off their bills.”

Want to replicate Gravesham’s success?

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Understanding the impact of disability benefits reforms on local authorities

Gravesham Borough Council uses LIFT to unlock £572,000 in water bill savings for vulnerable households through Southern Water partnership

Challenge

Solution

Impact

Challenge

Solution

Impact

The role of LIFT

Key takeaways for councils and utilities

Want to replicate Gravesham’s success?

Contact Us

Book a Call

Policy to reduce poverty in Wales