Experts are raising alarms that up to 1.2 million disabled individuals in the UK could lose significant financial support due to a major overhaul of the welfare system. Liz Kendall, the work and pensions secretary, has proposed changes aimed at saving £5 billion by reducing disability benefits, which she presented as part of a broader effort to encourage employment.
However, these proposals have sparked concern among campaigners who fear they will worsen the mental health crisis and increase child poverty. The Labour government is facing potential backlash from within, with up to 30 MPs possibly opposing the changes.
Kendall emphasized the need to harness the potential of the British workforce, criticizing the existing system as inadequate. Yet, Debbie Abrahams, chair of the Commons work and pensions committee, cautioned against making budget cuts at the expense of vulnerable populations.
This reform represents the most significant shift in the UK's welfare policy since the introduction of universal credit. Despite previous attempts, the UK has not reduced the number of long-term sickness benefit claimants to pre-pandemic levels, unlike other European nations. Kendall noted that spending on these benefits has increased by £20 billion since the pandemic and is expected to rise further.
Key elements of the reform include eliminating higher incapacity payments for those unable to work and introducing a "right to work" scheme for those on incapacity benefits. Additionally, young people under 22 will no longer qualify for health top-ups to universal credit, with savings redirected to employment and training initiatives.
A particularly controversial aspect is the tightening of eligibility for personal independence payments (PIPs), which are intended to support quality of life rather than employment. Under the new criteria, individuals who can perform basic tasks like heating food in a microwave may not qualify for these payments, unless they have other significant needs.
The Resolution Foundation estimates that between 800,000 and 1.2 million people could lose between £4,200 and £6,300 annually by 2029-30 due to these changes. Louise Murphy from the foundation criticized the reforms as being driven by short-term fiscal goals rather than long-term solutions, potentially causing financial hardship for many low-income households.
The Institute for Fiscal Studies also warned that 600,000 people could lose £2,400 annually in universal credit due to the replacement of the work capability assessment with a stricter PIP assessment.
Sarah Hughes from the mental health charity Mind expressed concern that these changes would exacerbate the mental health crisis by making it harder for people to access necessary support. Anela Anwar from the End Child Poverty coalition highlighted the potential increase in child poverty, questioning the government's commitment to reducing it.
The proposed changes are expected to be voted on in the Commons soon, with significant opposition anticipated from Labour MPs, including some who have previously been loyal to the government. Critics argue that tightening PIP eligibility could push more disabled people into poverty, with benefits already being insufficient.
Neil Duncan-Jordan, a newly elected MP, voiced concerns about the potential impact on disabled individuals, while Terry Jermy, another MP, expressed disappointment over the added difficulties for claimants. Despite some support for elements of the reform, there remains strong resistance to the overall package.