A DWP and Labour Party government will impose tougher tests for a key disability benefit, freeze some payments, and make major changes to the way Universal Credit is calculated.
The Department for Work and Pensions (DWP) has unveiled plans for £6 billion in benefits cuts. The DWP, under a Labour government, will introduce stricter tests for a key disability benefit, freeze certain payments, and implement significant changes to the calculation of Universal Credit.
In an interview with ITV News, Liz Kendall expressed her concern about individuals who are “taking the mickey” by claiming benefits when they should be working. She stated that the number of people pretending they can’t work is “not good enough,” and that this needs to stop.
“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 added. The DWP aims to save £5bn by tightening the eligibility criteria for Personal Independence Payments – a non-work related benefit designed to assist people with the extra costs associated with their disability.
A DWP spokesperson 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.”
PIP pay
Numerous individuals will lose access to Personal Independence Payment (PIP), which is not related to employment but rather intended to assist with the additional costs associated with disabilities.
Frozen payments
Payments will be frozen, with no increase to match inflation, as part of the planreports Birmingham Live. “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,” a Department for Work and Pensions (DWP) spokesperson said.
“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.”
Universal Credit basic rate
The basic rate for Universal Credit will increase for those searching for work or already in employment. However it will be reduced for those deemed unfit for work.
James Taylor, Executive Director of strategy at the disability equality charity Scope, expressed 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.”
Employment support
The savings of £1 billion will be invested in a significant employment support initiative for job seekers. Mr Taylor warned: “The Chancellor has a choice – 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, Head of Policy at the MS Society, expressed deep concern, saying: “We’re deeply concerned at the suggestion of welfare cuts and urge the government not to take such a cruel and harmful approach.”
She added, “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.”
Highlighting the dire consequences, Thomas warned, “So any cuts will inevitably increase poverty and destitution, and worsen health, amongst a community who are already likely to be struggling.”
Under the proposed plans, it appears even those with extreme disabilities deemed unfit to work are at risk of losing money.
Money loss
Louise Murphy, Senior Economist at the Resolution Foundation, offered a mixed view. She said: “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.”
