The Department for Work and Pensions (DWP) has come under criticism after new figures revealed that it spent nearly £500,000 in legal fees defending changes to disability benefits. The spending was incurred during a legal battle over adjustments to the Personal Independence Payment (PIP) and Universal Credit assessments, which a High Court ruling later deemed unlawful.
The case has raised broader concerns about the impact of benefit reforms on disabled people, with campaigners questioning the government’s priorities and its approach to welfare policy.
Legal Battle Over Disability Benefit Reforms
The legal case, spanning nine months, was initiated following proposed modifications to the Work Capability Assessment (WCA), a process used to determine eligibility for financial support under Universal Credit and Employment and Support Allowance (ESA). Disability campaigner Ellen Clifford challenged the reforms, arguing they would reduce entitlements for disabled people, making it harder for them to access financial support.
A Freedom of Information (FOI) request by campaigner Ben Claimant disclosed that the DWP spent £465,804.05 defending the proposed changes in court. The High Court ruling in January 2025 concluded that the consultation process behind the changes was “unlawful, misleading, rushed, and unfair.”
The ruling has also brought attention to the scale of the impact on disabled claimants. Although the DWP has not disclosed exact numbers, advocacy groups estimate that hundreds of thousands of people could have been affected by the changes.
What Was at Stake?
The proposed changes to the Work Capability Assessment (WCA) aimed to redefine eligibility for disability-related benefits. Campaigners have highlighted several major concerns :
- Financial losses for claimants – It remains unclear how much individual claimants would have lost, but reductions in PIP and Universal Credit could have significantly affected many people’s incomes.
- Number of people affected – The government has not provided figures, but advocacy groups estimate that at least 250,000 claimants could have seen their benefits cut.
- Projected cost savings – While the government has not confirmed exact figures, previous welfare reforms of this nature aimed to save millions of pounds annually.
- Legal costs vs. policy costs – The DWP spent nearly £500,000 on legal fees alone, raising concerns over how much the government was willing to spend defending cost-cutting measures that were ultimately ruled unlawful.
Campaigners Raise Concerns Over Impact on Disabled Claimants
Disability rights advocates have strongly condemned the government’s approach, suggesting that cost-cutting measures were prioritised over the well-being of claimants. Clifford criticised the government for “knowingly pushing hundreds of thousands of the poorest and most disadvantaged in society into deeper poverty and hopelessness.”
Mikey Erhardt, a campaigner at Disability Rights UK, described the case as a failure of government policy, stating:
“The FOI highlights what a failure this whole process was, with nearly £500,000 wasted by the government. The ruling that cost savings were at least one, if not the central basis for the proposed reforms, should be a wake-up call.”
Campaigners have outlined key concerns regarding the implications of these benefit changes:
- Reduced financial support – Many disabled claimants could lose access to critical income.
- Increased hardship – Advocates warn that changes could push vulnerable people further into poverty.
- Lack of proper consultation – The court ruling emphasised that the process was rushed and did not adequately involve those affected.
- Potential future cuts – There are fears that similar reforms may be introduced again under a different framework.
Labour Government Faces Backlash Over Handling of the Case
Criticism has not been limited to the previous Conservative government, as some campaigners have questioned Labour’s stance. Despite Labour’s pledge to treat benefit claimants with “respect and dignity,” campaigners argue that the party’s actions in pursuing this legal battle suggest otherwise.
Ben Claimant expressed concerns over Labour’s approach, stating :
“It feels like Labour is doubling down on what the previous administration was trying to do. Disabled people need stability and security, but instead, we are being victimised again for the failure of government over the last 15-plus years.”
How Does This Compare to Previous Cases?
The DWP has previously faced legal challenges over disability benefit policies. Some key cases include:
- In 2017, the DWP lost a legal battle over PIP criteria, which led to 220,000 claimants receiving increased benefits.
- In 2022, a tribunal ruled that the department had failed to fairly assess mental health claimants, forcing the government to backtrack on stricter eligibility rules.
- Between 2014 and 2023, the UK government faced multiple judicial reviews over the fairness of disability assessments, often resulting in policy reversals.
Campaigners fear that despite these legal rulings, the government continues to pursue cost-saving reforms at the expense of disabled people.
