The government has informed MPs that it will not retract its contentious plans regarding disability benefits, which are scheduled to be presented to parliament later this month.
Over 100 Labour MPs are believed to have reservations about the intention to reduce welfare spending by nearly £5 billion through modifications to personal independence payments (PIP) and the health supplement for Universal Credit.
Charity organizations warn that these modifications could have a “devastating” impact on vulnerable populations.
Politics Hub: Stay updated with the latest news
For better accessibility, please use Chrome browser to watch the video.
Benefits cuts explained
The chair of the Commons’ Work and Pensions Committee reached out to Secretary of State Liz Kendall last month, urging the government to postpone the changes until comprehensive assessments of their impact on employment, poverty, and health are completed.
Labour MP Debbie Abrahams expressed that while there may be justification for reforming disability benefits, “evidence suggests that these changes may not yield better outcomes for most claimants, potentially pushing many into poverty and distancing them from the labor market”.
‘Immediate reforms are essential’
However, Ms. Kendall replied in a letter made public on Wednesday, dismissing the suggestion as the bill requires final parliamentary approval in November for the alterations to take effect in 2026.
She stated: “We must act swiftly to assist those who can work in finding employment. With one in eight young individuals currently not engaged in education, employment, or training, and nearly 2.8 million people out of work due to long-term illness, coupled with an anticipated additional £18 billion in health and disability benefit expenditure, we need to alter our trajectory.
“We have consistently maintained that we will not consult on every proposal.
“Instead, parliament will have the opportunity to debate, suggest amendments, and vote on the areas where we have proposed urgent reforms that do not necessitate consultation.”
“With PIP caseloads and costs continuing to rise, reforms are necessary to ensure the system’s sustainability while providing support to those with the most significant needs.”
For better accessibility, please use Chrome browser to watch the video.
Labour announces benefit cuts
What are the government’s intentions?
The government states that the number of PIP claims has more than doubled from 15,000 new claims monthly in 2019 to 34,000. PIP is intended to assist disabled individuals with the added expenses of daily living.
It is proposed that claimants must score four points out of eight in their assessment to qualify for the benefit, with around 370,000 existing claimants projected to lose benefits upon reassessment.
Ms. Kendall remarked that the rise in claims will still contribute to an increasing PIP caseload by the end of the parliamentary term.
The government will also address what Ms. Kendall termed the “perverse incentive” regarding the health supplement for Universal Credit by freezing it at £97 a week for current claimants and lowering it to £50 a week for new claimants. The average annual loss in benefits is expected to be £1,700 for approximately three million individuals.
Claimants with the most serious conditions, recognized as never able to work, will be exempt from reassessment, providing them with peace of mind.
The government plans to allocate £1 billion for targeted support initiatives to assist disabled individuals in gaining employment, though it is estimated that this will aid only about 70,000 people in entering the workforce.
For better accessibility, please use Chrome browser to watch the video.
PM defends ‘vital’ welfare reforms
Ms. Kendall indicated that a minister from her department is in discussions with disabled individuals and organizations concerning the PIP assessment process. However, she clarified, “The review of the PIP assessment will necessarily require time and substantial engagement, and we cannot delay necessary changes to the PIP eligibility criteria pending its completion.”
‘Often disappointing news’
The First Minister of Wales, Eluned Morgan, who is preparing for upcoming elections, mentioned to Sky News that she had voiced her concerns to Ms. Kendall last week.
She commented: “This will undoubtedly be challenging for many individuals in Wales. We know more people in Wales will be impacted by PIP than in any other region of the country.
“While we agree that reforming welfare is necessary because we believe those who can work should do so, we have examples in Wales of how we can support people more effectively into employment through personal assistance.”
Read more:
Key points from the spending review at a glance
UK reaches post-Brexit agreement on Gibraltar
Are tax increases unavoidable after the spending review?
Labour MP Richard Burgon, who is committed to opposing the reforms, stated: “This news will understandably disappoint all MPs advocating for the government to reconsider this decision. Rather than allowing for adequate review and meaningful discussions with disabled individuals, the government has dismissed genuine concerns from MPs.
“These proposed cuts to disability benefits should be abandoned—not expedited without thorough examination.”