DWP plans for PIP and Universal Credit spending cuts 'will spell disaster'

Labour's plans for "fundamental reforms" of disability benefits to reduce spending have been criticised for prioritising cutbacks over improvements. Campaigners have slammed the government for focusing on making savings rather than on giving people the right support, saying it will end up "ripping billions of pounds" from disabled people.

Chancellor Rachel Reeves had warned of "difficult decisions on welfare" and set out three key steps in the October 30 Budget to tackle ballooning DWP expenditure. These include changes to the work capability assessment as part of a major shake-up of incapacity and disability payments; a huge new crackdown on fraud; and a plan to Get Britain Working to reduce economic inactivity and trim the benefits bill. The work assessment is used to decide if people are indefinitely signed off from employment on health grounds and qualify for incapacity payments such as the £416 limited work capability top-up through Universal Credit.

A long-awaited overhaul of Personal Independence Payment (PIP), a separate disability benefit with its own assessment, is set to be part of these "fundamental reforms", which are expected in spring 2025. Earlier proposals to cut PIP spending by the Conservatives, which included replacing cash payments with vouchers, appear to have been shelved with Labour saying it is considering its own measures. Minister for Disability Sir Stephen Timms recently revealed that the Department would carry out a survey of people's disability needs to determine what extra costs people need their PIP to help cover as part of gathering a "range of evidence" for the upcoming changes.

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However, this latest update in the Budget - where Ms Reeves was admittedly almost certain to focus on the financial aspect of benefits through spending and savings - has been criticised. Disability equality charity Scope says looking at disability through the prism of cuts and restrictions is the wrong approach.

James Taylor, executive director of strategy at Scope, said: "Ripping billions of pounds away from disabled people flies in the face of the government's commitment to put disabled people at the heart of everything they do. Starting with the amount they want to save, rather than on how to improve the system, spells disaster."

He went on to explain: "Investment in localised employment support for disabled people is welcome. We know that at least a million disabled people want to work and could with the right support. But bringing in changes based on savings, not on supporting disabled people, will be disastrous. Ramping up restrictions won't help support more disabled people into work, it will only make their lives harder.

"The Work Capability Assessment is degrading and stressful and change is desperately needed. But we desperately need government to put forward a positive case for change and set out its plans. After years of limbo, disabled people are yet again in the dark about the future of the benefits system, creating a huge amount of anxiety."

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