DWP set to cut £6bn in benefits as Labour unveils welfare reform – see full list
The Department for Work and Pensions (DWP) is set to unveil plans to slice benefits and cuts could total as much as £6 billion. The DWP proposes tougher assessments for a pivotal disability benefit, freezing specific payments, alongside transforming the calculation system for Universal Credit.
During a revealing chat with ITV News, Liz Kendall voiced her worries over individuals who are “taking the mickey” with unnecessary benefit claims at a time when they should be working. She pointed out that the surge in claimants feigning incapacity is “not good enough” and highlighted the necessity of ending such practices.
“I don’t blame people for thinking that they can’t, because they’re stuck on a waiting list for treatment, they haven’t had the proper support that they might need from the job centre,” she further explained.
There is currently speculation that the DWP could vacuum up to £5bn out of the government’s benefits bill by toughening the conditions to qualify for Personal Independence Payments â a benefit designed to help those with disabilities with additional living costs.
A DWP representative said: “We have been clear that the current welfare system is broken and needs reform, so that it helps long-term sick and disabled people who can work to find employment, and ensures people receive the support they need, while ensuring fairness for the taxpayer.
“Without reform more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it’s bad for people too.”
Many people will lose their entitlement to Personal Independence Payment (PIP), a benefit designed to help with the extra costs of living with a disability, not linked to employment.
As part of the plan, payments will be frozen and won’t rise in line with inflation, Birmingham Live reports.
A spokesperson for the Department for Work and Pensions (DWP) said: “We have a duty to get the welfare bill on a more sustainable path and we will achieve that through meaningful, principled reforms rather than arbitrary cuts to spending. That’s why as part of our Plan for Change we will bring forward our proposals for reform shortly that will unlock work and help us reach our ambition of an 80 per cent employment rate.”
The basic rate for Universal Credit will increase for those seeking or already in employment, but it will decrease for those deemed unfit for work.
James Taylor, Executive Director of strategy at disability equality charity Scope, voiced his concerns: “Ripping PIP away will be catastrophic for disabled people. PIP exists because life costs more if you are disabled. Those costs won’t disappear if the government squeezes eligibility. Many disabled people use PIP to get to and from work and to pay for essential equipment like mobility aids.
“Making it harder to get benefits will just push even more disabled people into poverty, not into jobs.”
£1 billion will be funnelled into a massive employment support drive for those on the job hunt. Mr Taylor said there was a stark choice: “The Chancellor has a choice â cut benefits and increase poverty, or invest in an equal future for disabled people. Making the wrong choice will have a devastating impact on disabled people and their families.”
Laura Thomas, the leading voice on policy at the MS Society, was unmistakably alarmed by the hints of welfare reductions, urging, “We’re deeply concerned at the suggestion of welfare cuts and urge the government not to take such a cruel and harmful approach.”
She further stressed the fears rippling through the MS community: “People with MS have told us they’ve been filled with worry in recent weeks about what these changes could mean for them. MS can be debilitating, exhausting and unpredictable. And we know that already too many people with the condition are struggling to pay for essentials like food and medications with the benefits they do receive.”
Thomas added: “So any cuts will inevitably increase poverty and destitution, and worsen health, amongst a community who are already likely to be struggling.”
With the current proposals, it looks like even those with severe disabilities considered unable to work could face financial hits.
In a response to the recent financial package, Louise Murphy, Senior Economist at the Resolution Foundation, shared her concerns: “This package combines sensible reforms to incentivise and support people with poor health back towards work, with hugely controversial cuts to non-work-related disability benefits.
“Freezing PIP next year will result in a real-terms income loss for around four million people, 70 per cent of whom are in low-to-middle income households. The scale of eligibility restrictions required to save £5 billion will change who the Government considers to be disabled. It must tread very carefully on this.”
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