DWP PIP cuts plan for 3.6 million people sparks outcry
By Neil Shaw, Assistant Editor
Prime Minister Sir Keir Starmer is facing increasing backbench discontent as the Government gets ready to unveil significant changes to the welfare system during this week. Work and Pensions Secretary Liz Kendall is anticipated to reveal plans for reform on Tuesday, aiming to encourage more individuals to return to work and decrease the cost of a benefits bill labelled as “unsustainable” by ministers.
However, reports suggesting that this reform could entail cuts to the Personal Independence Payment (PIP), the primary disability benefit, have caused an uproar among Labour MPs. Some backbenchers voiced their frustration at the lack of communication from ministers, with one even describing the “engagement sessions” held by Number 10 as merely a “tick box exercise.” Another MP mentioned that many of their colleagues had already expressed their intention to vote against such proposals.
It is speculated that the backlash has led to a reconsideration of plans to freeze the level of PIP instead of increasing it in line with inflation, which would effectively result in a real-terms reduction for 3.6 million claimants. Nevertheless, other backbenchers have expressed anger over leaked proposals such as the PIP freeze, suggesting that this was done in “bad faith” before any agreements had been reached between Ms. Kendall and the Treasury.
Ministers argue that reform is imperative as the number of people in England and Wales claiming sickness or disability benefits has skyrocketed from 2.8 million to approximately 4.0 million since 2019. The benefits bill has also increased accordingly, reaching £48 billion in 2023-24 and is projected to soar to £67 billion in 2029-30 – a level deemed unsustainable by the Government, surpassing even the current schools budget.
Health Secretary Wes Streeting disclosed on Sunday that the comprehensive proposals have yet to be presented to the Cabinet and cautioned the public against succumbing to “speculation.” He emphasised that Ms. Kendall is keen on assisting those who require the most help and ensuring a broad range of support is available, while also emphasizing individual responsibility.
Amidst this, Greater Manchester mayor Andy Burnham has urged caution concerning benefit changes, advocating for a focus on assisting individuals in securing employment rather than simply slashing benefits. Burnham expressed concerns over altering benefit support and eligibility while maintaining the current overarching system, stating that it could condemn numerous individuals to poverty. He stressed that under no circumstances should support for disabled individuals incapable of working be reduced.
Suggestions have emerged from Government sources indicating that Ms. Kendall’s reforms might include a “right to try guarantee,” permitting disabled individuals to pursue employment without jeopardising their benefits if the endeavour proves unsuccessful. Conversely, Conservative shadow Work and Pensions Secretary Helen Whately claimed that Labour is divided on welfare issues and incapable of delivering the decisive change necessary.
Whately highlighted the Government’s indecisiveness and delay as detrimental, costing taxpayers millions each day and failing those reliant on the welfare system. She reiterated the Conservative Party’s unified stance on the need to reduce spending on benefits, affirming their commitment to saving £12 billion annually from the welfare bill – a plan that Labour had previously abandoned.
In conclusion, the ongoing debate over potential cuts to disability benefits has sparked a contentious dialogue amongst politicians, illustrating the deep divisions within the political landscape concerning welfare reform. Stay tuned for further updates as the Government unveils its proposed changes to the welfare system in the coming days.