The eligibility standards for incapacity advantages might be narrowed in a bid to slash £5bn from the welfare invoice, Liz Kendall has introduced.
Talking within the Commons, the work and pensions secretary stated the variety of new individuals claiming private independence cost (PIP) is “not sustainable”.
Politics stay: Extra welfare cuts not dominated out
She stated the federal government is not going to freeze PIP – as stories had beforehand advised – however as a substitute make it more durable to qualify for the every day dwelling allowance element.
PIP is cash for individuals who have further care wants or mobility wants on account of a incapacity.
Individuals who declare it are awarded factors relying on their means to do sure actions, like washing and making ready meals, and this influences how a lot they may obtain.
Ms Kendall stated that from November 2026, individuals might want to rating a minimal of 4 factors in a minimum of one exercise to qualify for the every day dwelling aspect of PIP.
Presently, the usual charge is given if individuals rating between eight and 11 factors general, whereas the improved charge applies from 12 factors.
The adjustments is not going to have an effect on the mobility element, Ms Kendall stated – however it’s unclear how many individuals might be impacted, with the Workplace for Price range Duty’s costings report not due till subsequent week’s spring assertion.
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1:27
What to anticipate from the spring assertion
Warning of ‘immense struggling’
Charities and unions reacted angrily to the announcement, and a number of other backbench Labour MPs raised considerations.
Labour MP Jon Trickett stated on X that “cutting welfare payments to sick people is wrong morally, fiscally and economically” and he’ll vote towards the measures “when the time comes”.
Former shadow chancellor John McDonnell warned individuals might die on account of the cuts, telling MPs the cuts will result in “immense suffering”.
Charles Gillies, of the Incapacity Profit Consortium, warned extra disabled individuals could be pushed into poverty.
What different measures have been introduced?
Ms Kendall additionally introduced a evaluation of the PIP evaluation, which she stated might be performed “in close consultation with disabled people, the organisations that represent them and other experts”.
There can even be a session on delaying entry to the well being top-up on common credit score till somebody is 22, with the financial savings to be reinvested into work help and coaching alternatives.
And the Work Functionality Evaluation (WCA), which determines if an individual is match for work, might be scrapped in 2028, with monetary help for people who find themselves sick or disabled decided solely by means of the PIP evaluation.
Ms Kendall described the present WCA system as “complex” and “time-consuming” for individuals attempting to use.
Different reforms embody:
Merging jobseeker’s allowance and employment and help allowanceRaising the usual common credit score allowance by £775 in 2029/30Introducing a “right to try” initiative so individuals who need to try to get again into work will not lose their advantages whereas they do
Ms Kendall stated: “This is a significant reform package that is expected to save over £5bn by 2029.”
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2:09
Why is the federal government chopping advantages?
Chancellor in search of financial savings
It comes as Chancellor Rachel Reeves struggles to stability the books resulting from a grim financial image, with additional spending cuts anticipated in her spring assertion on 26 March.
The price of long-term illness and incapacity advantages for working-age individuals has risen by £20bn for the reason that pandemic and is forecast to hit £70bn over the following 5 years.
Ministers have stated there may be additionally an ethical case for change, with one in eight younger individuals not in schooling, coaching, or employment – prompting fears of a “wasted generation”.
Ms Kendall stated that whereas extra individuals at the moment are dwelling with a incapacity, the rise in these in search of incapacity advantages is disproportionate.
Claims amongst younger persons are up 150%, whereas claims for psychological well being situations are up 190% and claims for studying difficulties are up over 400%, she stated.
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1:44
Younger individuals brace for profit reform
Tories ‘held our nation again’
Ms Kendall blamed the Tories for making a system that’s “holding our country back”.
She acknowledged that some individuals can by no means work, however stated many sick and disabled individuals need to “with the right help and support” and they need to “have the same chances and choices as everyone else”.
Stories forward of the bulletins advised Deputy Prime Minister Angela Rayner and Vitality Secretary Ed Miliband have been among the many ministers to have voiced considerations in personal.
However the prime minister’s spokesman insisted the federal government is united in its settlement on the necessity for reform.
