Labour’s plan to cut billions from the welfare bill has sparked unease within the party and with changes potentially slashing upwards of £5 billion in payments, we’re asking – is the government cutting too deep?
With billions cut from the rising benefits bill there is concern the Labour government may have sliced a little too deeply this time. Work and pensions secretary Liz Kendall is saving a fortune on payments through sweeping changes to tighten eligibility for Personal Independent Payments (PIP) – but has she gone too far?
She told MPs that the social security system inherited from the Tories is “failing the very people it is supposed to help and holding our country back”. Ms Kendall said millions of people were trapped on benefits and denied the dignity that good work can bring. But she said the system will be there “for people in genuine need … that is a principle we will never compromise on”.
In a Commons statement, she unveiled major changes to PIP as part of plans to save £5billion a year by 2029/30. The MP said the “complex” and “time-consuming” work capability assessment for Universal Credit will be scrapped in 2028. The package will merge Jobseekers Allowance and ESA into contributory employment insurance. Have benefits cuts gone too far? Take our poll below and if you can’t see it, click here
Around 4 million working age people claim sickness or disability benefits in England and Wales, up from 2.8 million in 2019. The cost of the benefits bill is forecast to hit £70bn-a-year by the end of the decade.
Keir Starmer’s government has pressed ahead with the changes despite there being a lot of unrest among Labour MPs about how far these cuts are really going. Ministers are feeling the pressure to tackle the growing welfare bill.
Working-age adults racked up more than £48 billion on health and disability benefits in 2023/24, according to the Office for Budget Responsibility (OBR), and by 2029/30, that’s forecast to rise to more than £75 billion. So it’s no surprise that the government feels something needs to change. But are these changes the right way to go?
Downing Street is arguing there’s both a “moral and an economic case” for overhauling the system. They say these changes will get the welfare system “back on a more sustainable path.”
But what does that really mean for the people who rely on these benefits every day? James Watson-O’Neill, Chief Executive at the national disability charity Sense, said: “Disabled people need greater support from the government, not draconian cuts that will drive more disabled people into poverty.
“We are deeply concerned about the devastating impact these cuts will have on those disabled people who are unable to work. They deserve vital financial protection. Our research has shown that half of disabled people with complex needs who are unable to work already can’t afford the support and equipment they require – these cuts could push many further into crisis.
Benefit cuts WATCH LIVE – major changes to PIP and Universal Credit revealed
“Trying to frame cuts to benefits as a solution to incentivise work is misplaced. Personal Independence Payment (PIP) was never designed to help people find work. It’s about helping disabled people cover the extra costs of living with a disability, which often enables them to stay in employment. Stripping away this support will not create more job opportunities for disabled people – it will simply leave them more vulnerable.
“Instead of cutting vital support, Sense calls on the government to focus on removing the barriers disabled jobseekers face. We need a nationwide rollout of assistive technology in job centres, and much more targeted training for work coaches to support disabled people’s unique needs.
“Most importantly, we need the government to commit to ensuring that disabled people who cannot work are financially protected, not penalised for being disabled.”
Now it’s time to share what YOU think. Have benefits cuts gone too far? Take our poll above and if you can’t see it, click here – then expand on your feelings in the comments.
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