Reports suggest that Labour wants to cut £5 billion from the Personal Independence Payment (PIP)
A Labour minister has defended plans which have been described as ‘taking money from some of the poorest and most vulnerable people in society’. Health Secretary Wes Streeting was appearing on Sunday with Laura Kuenssberg and was asked about controversial plans to radically change benefits.
Reports have emerged detailing the extent of the welfare cuts Labour plans to institute, with indications that ministers are aiming to cut £5 billion from the Personal Independence Payment (PIP), a benefit relied upon by 3.6 million people.
Work and Pensions Secretary Liz Kendall has previously said an upcoming Health and Disability Green Paper will set out plans to support those who can work back into jobs, rather than write them off.
It’s rumoured eligibility assessments will be tightened, making it tougher for claimants to receive support. ITV has reported that a freeze on PIP payments for next year is also on the cards, halting their inflationary increase as was customary in prior years.
Host Laura said the projected spend on Department for Work and Pensions benefits was set to soar to £76 billion in 2030: “Huge projections so you can see from those numbers why the government might want to tackle the bill, but it’s not necessarily going to be easy. Health Secretary is it. As a Labour politician, did you get into politics in order to take money from some of the poorest and most vulnerable people in society?”
Mr Streeting replied: “We don’t want to take money from the poorest in society. We want to support people. Who are the poorest and most vulnerable to make sure they’ve got dignity, independence and great quality of life. I’m in many respects a product of the welfare system and a product of what an effective state could be.
“When I was growing up, the welfare system put food in the fridge and money in the electric meter. We had a council house and a state education gave me every opportunity to be now sat in front of you today as a government minister responsible for our NHS and social care services, so.without that support from an active state, I wouldn’t be here talking to you, so I get all of that.”
He added that the bill for people unable to work for health reasons was unsupportable: “The challenge we’ve got though, and it speaks to the point James was just making about the scale of the challenge in the country. We’ve got 1 in 8 young people in this country, not in education, employment, or in training.
“We’ve got 1 in 10 people who are off work sick and 3 million people shut out of the labour market. Because of long term illness. Now, of course there will be some people who because of serious disability, or because of chronic illness that can’t be turned around, will not be able to work, and those people need to be supported. But, but the welfare state’s also got to be a springboard back to work and lots of people get written off, you know, as if they can’t contribute when they, they can and should and want to.”
Mr Streeting declined to be drawn on whether the Government will freeze personal independence payment (PIP) as uncertainty continues to surround Labour’s upcoming welfare reforms. Work and Pensions Secretary Liz Kendall is expected to announce reforms on Tuesday aimed at cutting a welfare bill that ministers have described as “unsustainable”.
Ahead of the announcement, speculation has mounted that PIP – the main benefit for working-age adults – could be frozen rather than increased in line with inflation, delivering a real-terms cut for 3.6 million claimants. But on Sunday, reports suggested the Government is considering reversing course on PIP in the face of opposition from Labour MPs and division in the Cabinet.
Asked about the speculation on Sunday, Health Secretary Wes Streeting said he has not yet seen the full proposals, but is sure Ms Kendall “wants to support people who need help the most” and will “make sure that there is a wide range of support”. He told the BBC’s Sunday With Laura Kuenssberg: “I haven’t seen the proposals but you’ve seen the briefing, you’ve seen the speculation, I think the moral of the story is wait for the plans.”
During his interview, Mr Streeting also said he believes there is an “overdiagnosis” of mental health conditions leading to “too many people being written off” as unable to work.
Areas thought to be at risk:
- Top rate of incapacity benefit, which at present means those deemed unfit for any work are paid more than £800 a month
- Personal Independence Payments (PIPs) revamped with it much harder to qualify for money
- PIP payments next year could be frozen
- Tougher mental health assessment criteria
Work and Pensions Secretary Liz Kendall MP has said: “We inherited a broken welfare system that is failing sick and disabled people, is bad for the taxpayer, and holding the economy back. For too long, sick and disabled people have been told they can’t work, denied support, and locked out of jobs, with all the benefits that good work brings.
“But many sick and disabled people want and can work, with the right support. And we know that good work is good for people – for their living standards, for their mental and physical health, and for their ability to live independently.
“We’re determined to fix the broken benefits system as part of our Plan for Change by reforming the welfare system and delivering proper support to help people get into work and get on at work, so we can get Britain working and deliver our ambition of an 80% employment rate.”
