The Labour Government has unexpectedly backtracked on its plan to freeze the Personal Independence Payment (PIP) disability benefits, following significant opposition.
Initially, Work and Pensions Secretary Liz Kendall had aimed to freeze PIP as part of broader welfare cuts. However, after facing growing criticism from MPs and disability advocates, the proposal now seems to have been abandoned.
According to reports from GB News, the government is reconsidering its approach to welfare reform amidst rising pressure.
Labour’s Shifting Stance on Disability Benefits
Liz Kendall had previously pledged to overhaul the benefits system, which would include significant changes to the PIP payments. However, the planned freeze, which would have reduced support for individuals with disabilities, has now been abandoned.
According to sources, this reversal comes after growing pressure from politicians and public concern about the impact on vulnerable people.
Kendall has emphasized the government’s commitment to protecting welfare payments for individuals who are unable to work, stating :
For those who absolutely cannot work, this is not about that.
While she remains committed to reforming the system, she has underscored that changes should not harm the most vulnerable.
PIP Rates and the Impact of Government Plans
PIP is a vital form of disability support, offering claimants a weekly standard rate of £72.65 and an enhanced rate of £108.55 for the daily living component.
The mobility component provides further assistance, offering a standard weekly rate of £28.70 and an enhanced rate of £75.55. Any reductions in these payments or cuts to eligibility could leave millions of people struggling.
While the freeze on PIP payments has been scrapped, there are still plans to reduce government spending. The government is considering changes to the eligibility criteria for disability benefits, including PIP, which could restrict access to some claimants.
The government is also considering cuts to incapacity benefits to reduce the overall benefits bill.
The Broader Context of Welfare Reform
This shift in policy comes amid ongoing discussions about welfare reform. Chancellor Rachel Reeves has expressed concern over the growing welfare budget, noting that “we do need to get a grip” on the current system, which she claims “is not working for anyone.”
Despite this, many have criticized the proposed cuts to benefits, particularly those that affect disabled individuals.
Kendall’s department is expected to announce additional reforms to the welfare system ahead of the Chancellor’s Spring Budget, scheduled for March 26, 2025.
The government is balancing fiscal responsibility with the need to provide vital support to those in need.
Rising Disability Claims and Mental Health Factors
The number of people claiming disability benefits has increased significantly in recent years. The latest data shows that nearly four million working-age adults in England and Wales are claiming incapacity or disability benefits, an increase from 2.8 million before the Covid pandemic.
A significant factor in this rise is the growing number of young people claiming disability benefits, particularly those with mental health conditions.
Research from the Department for Work and Pensions shows that the number of people aged 16 to 34 who are long-term sick with a mental health condition has reached 270,000 — an increase of 60,000 (26 percent) in the past year alone.
Liz Kendall stressed the importance of work for improving mental and physical health, noting :
Increasingly, there is lots of clear evidence that work is good for mental health and physical health too.
However, she also acknowledged that for many people, work is not a feasible option due to health challenges. For those individuals, maintaining the support provided by PIP and other disability benefits is critical.
Disability Charities Raise Concerns
Disability charities have strongly opposed any cuts to disability benefits, warning that reductions would have disastrous consequences for disabled individuals.
Life costs a lot more when you’re disabled, on average by over £1,000 every month – said David Southgate
Policy manager at the disability charity Scope. He added that cutting support would disproportionately impact those already struggling to afford essential living costs:
We’re hearing constantly from people who already can’t afford these, so taking further support away would be devastating.
