Around 1 million people face losing or seeing their disability benefits reduced under new government plans. The shake-up, driven by a need to cut spending by £5 billion, will tighten eligibility for benefits – particularly for those with mental health issues and mobility difficulties.
Labour ministers insist the changes are necessary to fix what they describe as a “broken” welfare system. However, the proposals have sparked backlash from disability campaigners and some within Labour’s own ranks.
Why Is Labour Cutting Benefits?
Chancellor Rachel Reeves says the government needs to “get a grip” on the rising welfare bill. Costs are soaring, with Personal Independence Payments (PIP) alone predicted to rise by £15 billion in real terms by the end of the decade.
To control this, the government plans to scrap the work capability assessment for incapacity benefits. This means the long-term sick would need to prepare for work. The top rate of incapacity benefit – currently over £800 a month – is expected to be cut, bringing it more in line with jobseekers’ benefits.
What’s Changing for PIP?
Under current rules, applicants qualify for PIP based on how their condition affects daily life. Points are awarded for difficulties with tasks like cooking, washing, and socialising.
The new system will raise the bar:
- Needing help cooking a meal? That’s enough to qualify.
- Need help using a microwave? Tough luck.
- Need help washing your hair or your body below the waist? Doesn’t count.
- Need help washing your upper body or going to the toilet? That counts.
- Need prompting to go to the toilet or to talk to others? No points.
Applicants will need to score four points on at least one activity to qualify for the lower rate, and eight points for the higher rate. This is expected to cut down mental health-related claims, which now account for 37% of PIP awards – up from 28% before the pandemic.
Who Will Be Affected?
Campaigners warn that the cuts will hit disabled people hard.
James Taylor from Scope said:
“Tightening the assessment would be a disastrous move and result in hundreds of thousands more disabled people being pushed into poverty.”
Mental health and neurodevelopmental conditions like autism and ADHD are thought to be behind the rise in PIP claims. Tom Pollard from the New Economics Foundation believes these groups will likely be targeted under the new rules.
Deaf people may also be affected. Under the new system, needing a hearing aid wouldn’t qualify someone for benefits – a move likely to anger campaigners.
Labour’s Justification
Labour ministers argue that the system is unsustainable and that tough choices are needed. Some of the £5 billion savings will go towards:
- Raising the basic rate of Universal Credit
- A £1 billion package of employment support
The Department for Work and Pensions defended the plans, saying:
“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.”
What’s Next?
Labour is expected to announce the full details next week. However, with mounting pressure from campaigners and internal criticism from figures like Ed Miliband and Angela Rayner, the fight over these changes is only just beginning.
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