DWP benefit crackdown to see 800,000 PIP claimants lose on average £4,500 a year

The Bill will introduce a new additional eligibility requirement for the daily living component of PIP so that a minimum of 4 points must be scored on at least one daily living activity to be eligible for the daily living component. It will also rebalance Universal Credit.

Welfare Secretary Liz Kendall has called the existing system “unsustainable” and accused it of “trapping people in welfare dependency.”

Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it.

“This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth as part of our Plan for Change.

An impact assessment published by the Department for Work and Pensions yesterday outlines the scale of the proposed changes. It estimates that by 2029–30, an additional 250,000 people will fall into relative poverty as a result of the reforms, including 50,000 children.

The assessment also reveals that 3.1 million families with a disabled member would lose an average of £1,730 a year under the proposals.

Meanwhile, 1.8 million families with a disabled member would gain £560 per year, and 1.9 million families without a disability would gain £290 annually.

The report acknowledges that its estimates don’t account for the £1 billion the Government plans to invest in helping disabled people and those with long-term health conditions into work.

Officials expect this investment to “mitigate the poverty impact among people it supports into work”. Disability charities have condemned the proposals, warning of severe consequences for vulnerable people.

The reforms could stop tens of thousands of workers from continuing in their jobs, a leading union has warned.

Around three-quarters of those in receipt of PIP, say losing it would affect their ability to work. Three in five respondents said they spent the payment on travelling to their workplace and a similar number said it covered treatments such as physiotherapy and counselling.

Unison said the planned reforms would have the opposite effect of getting more people off benefits and into work, forcing thousands of disabled people out of their jobs.

Daniel Jennings, senior policy and campaigns officer at Epilepsy Action, said: “These latest DWP figures only serve to highlight the devastating impact their own cruel and unnecessary cuts will have on people with disabilities.”

The DWP’s own data shows that around 11,000 people with epilepsy – a third of PIP claimants with the condition – would lose Government support by 2029/30.

“If the Government wants to support more people into work, this isn’t the way to go about it. PIP actually helps many people with epilepsy to stay in work,” Jennings added.

The Government’s list of conditions most affected includes epilepsy, cancer, pain problems and syndromes, and mental health conditions.

Citizens Advice has published a separate report suggesting the impact on disabled people will likely be worse than Government analysis indicates.

A graph showing personal independence payment claimants in England and Wales, by age group

PA Graphics/Press Association Image

Christina McAnea, Unison general secretary said: “Going after the most vulnerable in society is in no-one’s interests. Disabled people are not shirkers or scroungers.

“All too often they want to work and they rely on the social security system to give them the support to do so. Stopping people from working won’t grow the economy. If ministers really want to encourage more people back into jobs, they need to make sure work pays.

“That means breaking down the barriers preventing disabled people from accessing work, and going after the employers paying poverty wages.”

Kendall has set out the proposals amid a political battle, with the Government facing opposition from dozens of Labour MPs who are reluctant to back the cuts.

The reforms represent one of the most significant changes to disability benefits in recent years, with widespread implications for vulnerable groups across Britain.

The Welfare Reform Bill is aimed at reducing the number of working age people on sickness benefits. It’s supposedly aimed at encouraging more people back into work – but one of its flagship tools to carry that out is through benefits cuts.

Some 40 Labour MPs have signed a letter refusing to support the cuts, while dozens more, including some ministers, are said to have concerns.

The Government insists that 90 per cent of existing claimants will not lose their benefits and argues that many people will be financially better off overall.

Despite the reforms, the total welfare bill is still expected to rise over the course of this parliament.