The Department for Work and Pensions (DWP) has unveiled a package of £6 billion in welfare reforms, targeting Universal Credit and Personal Independence Payment (PIP). These changes, introduced under a Labour government, include stricter eligibility rules, payment freezes, and revised benefit calculations.
The government argues that the reforms will make the welfare system fairer and more sustainable, while disability rights groups warn that they could have devastating consequences for vulnerable individuals.
Full List of Changes to Universal Credit and PIP
The government has detailed six major changes to the welfare system. Tougher eligibility tests will be introduced for Personal Independence Payment (PIP), making it harder for some individuals to qualify.
Additionally, PIP payments will be cut and frozen, meaning they will not increase with inflation, leading to a potential real-terms reduction in financial support for disabled individuals. The basic rate of Universal Credit will rise for those actively seeking work or already employed, but those deemed unfit for work will see their payments reduced.
To balance these changes, the government plans to invest £1 billion into employment support programs, with the aim of increasing workforce participation and reaching an 80% employment rate.
These reforms come after Work and Pensions Secretary Liz Kendall criticized what she described as individuals who are “taking the mickey” by claiming benefits when they should be working. She argued that many people genuinely want to work but have been held back by long NHS waiting lists and lack of job center support.
Tougher Eligibility for PIP
The government plans to tighten eligibility criteria for Personal Independence Payment (PIP), a non-work-related benefit designed to help with the extra costs of disability. The DWP expects this measure alone to save £5 billion.
A government spokesperson stated that the current welfare system is broken, adding :
“Without reform, more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it’s bad for people too.”
Disability organizations have strongly opposed the planned cuts. James Taylor, Executive Director of Scope, warned that limiting PIP eligibility could push disabled individuals further into poverty.
“PIP exists because life costs more if you are disabled. Those costs won’t disappear if the government squeezes eligibility.”
Pip Payment Freeze
Alongside stricter DWP eligibility tests, PIP payments will not increase with inflation. This means that in real terms, recipients will receive less financial support as the cost of living continues to rise.
Laura Thomas, Head of Policy at the MS Society, has expressed concern that these cuts could have severe consequences for disabled individuals, particularly those with chronic conditions such as multiple sclerosis (MS).
“People with MS have told us they’ve been filled with worry in recent weeks about what these changes could mean for them. MS can be debilitating, exhausting, and unpredictable. Already, too many people with the condition are struggling to pay for essentials like food and medications with the benefits they receive.”
Changes to Universal Credit
The government is also implementing significant revisions to Universal Credit payments. While the basic rate will increase for those actively seeking work or already employed, individuals deemed unfit for work will see their payments reduced.
According to the DWP, these measures are intended to encourage employment and make the system more sustainable. A government spokesperson stated:
“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.”
However, critics warn that reducing payments for those unable to work could leave some of the most vulnerable individuals without sufficient financial support.
£1 Billion Investment in Employment Support
The government plans to reinvest £1 billion from the benefit cuts into employment support programs. The initiative aims to help people with long-term health conditions return to work, with the broader goal of reaching an 80% employment rate.
While some analysts acknowledge the benefits of work-focused support, others warn that the cuts to disability benefits could overshadow the positive impact of these investments.
Louise Murphy, Senior Economist at the Resolution Foundation, noted :
“This package combines sensible reforms to incentivize and support people with poor health back towards work, with hugely controversial cuts to non-work-related disability benefits.”
Have the government thought who is going to employ these disabled people. It is and has been difficult enough for them to get employment. Plus what with the last budget , a lot of employers are finding it difficult cope as it is/