Work and Pensions Secretary Liz Kendall has affirmed the government’s unwavering commitment to welfare reforms, despite anticipated dissent from within the Labour party. This follows the unveiling of draft legislation outlining planned cuts to Personal Independence Payments (PIP) and the sickness-related component of Universal Credit.
Official government assessments project a gradual reduction in support for those failing to meet revised eligibility criteria, while emphasizing safeguards for the most vulnerable. However, over 100 Labour MPs have voiced concerns ahead of the upcoming parliamentary vote.
The Liberal Democrats have condemned the changes as potentially devastating for disabled individuals, a sentiment echoed by the Green Party, who described the proposals as “cruel.”
Prime Minister Sir Keir Starmer reiterated his support for the reforms earlier this week, emphasizing the necessity of their passage. Kendall echoed this sentiment, stating the government remains resolute while expressing openness to dialogue with concerned colleagues.
Kendall stressed that the reforms are not primarily driven by budgetary constraints, asserting that the aim is to address the current system’s perceived shortcomings, where too many individuals are deemed ineligible for support. She cited record-high PIP claimant numbers (3.7 million) as evidence of an unsustainable system.
The Universal Credit and Personal Independence Payment Bill, published Wednesday, will tighten PIP eligibility criteria and reduce the sickness-related element of Universal Credit. Government impact assessments predict that 90% of current PIP claimants will continue receiving payments by 2030.
The government anticipates a gradual reduction in payments due to the assessment process and infrequent reassessments (every three to four years). Reassessments can, in some cases, lead to increased payments; currently around one in five, a proportion potentially rising by 2029.
Nevertheless, the government projects a loss of benefits for 370,000 existing claimants in England, Wales, and Northern Ireland, yielding £1.7 billion in savings by 2029/30. Further savings of £1.89 billion are anticipated from a predicted decrease in future claimants. Reductions in Carers’ Allowance are also projected, totaling £500 million by 2029/30.
The government defends the proposals by highlighting enhanced support for individuals with lifelong disabilities, eliminating the need for reassessments and increasing weekly payments for over 200,000 individuals. While welfare payments are projected to increase by the end of the parliament, the reforms will moderate the growth rate.
A March government assessment suggested the cuts could push an additional 250,000 people, including 50,000 children, into relative poverty. However, the government noted that this assessment did not account for planned investments in supporting the long-term sick and disabled back into work or other poverty reduction initiatives.
Criticism has come from various quarters. Liberal Democrat leader Sir Ed Davey argued that addressing health and social care would be a more effective approach to cost reduction. Labour MP Rebecca Long-Bailey stated the bill could “destroy” lives and vowed to oppose it, even at the risk of further party disciplinary action.
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