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Reading: Work and pensions secretary tells MPs controversial incapacity profit reforms will go forward subsequent yr
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Michigan Post > Blog > Business > Work and pensions secretary tells MPs controversial incapacity profit reforms will go forward subsequent yr
Business

Work and pensions secretary tells MPs controversial incapacity profit reforms will go forward subsequent yr

By Editorial Board Published June 11, 2025 6 Min Read
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Work and pensions secretary tells MPs controversial incapacity profit reforms will go forward subsequent yr

The federal government has informed MPs it won’t again down from its controversial reforms to incapacity advantages, that are set to be launched to parliament later this month.

Greater than 100 Labour MPs are thought to have considerations in regards to the plans to chop practically £5bn from the welfare invoice by proscribing private independence funds (PIP) and the well being top-up to Common Credit score.

Charities say the adjustments could have a “catastrophic” impact on susceptible folks.

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3:06

Advantages cuts defined

The chair of the Commons’ Work and Pensions Committee wrote to the secretary of state, Liz Kendall, final month, calling on the federal government to delay the adjustments till a full evaluation is carried out of the affect on employment, poverty and well being.

Labour MP Debbie Abrahams wrote that whereas there was a case for reform to incapacity advantages, “the evidence indicated [these changes] might not improve outcomes for most claimants, but instead push many into poverty and further away from the labour market”.

‘Reforms are wanted now’

However Ms Kendall has written again, in a letter made public on Wednesday, to reject the thought as a result of the invoice wants last approval from parliament in November to ensure that the adjustments to take impact in 2026.

She wrote: “We want pressing motion to assist individuals who can work, into work. With one in eight younger folks not in training, employment or coaching and practically 2.8 million folks out of labor as a result of long-term illness, and spending on well being and incapacity advantages set to rise by a further £18bn, we should change course.

“We have consistently been clear that we are not consulting on every proposal.

“As a substitute, parliament could have the chance to completely debate, suggest amendments to, and vote on areas the place we’ve introduced pressing reforms that aren’t topic to session.

“With PIP caseload and costs forecast to continue rising, reforms are needed now to make the system sustainable, while supporting those people with the greatest needs.”

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Liz Kendall

3:38

Labour proclaims profit cuts

What’s the authorities’s plan?

The federal government says the PIP caseload has greater than doubled from 15,000 new claims per 30 days in 2019 to 34,000. PIP is a profit to assist disabled folks with the elevated prices of day-to-day dwelling.

It’s proposed that claimants might want to obtain 4 factors out of eight of their evaluation to qualify for the profit, and the federal government says some 370,000 current claimants will lose out when reassessed.

Ms Kendall says the expansion in claims means the PIP caseload will nonetheless enhance by the top of the parliament.

The federal government can even deal with what Ms Kendall known as the “perverse incentive” to assert the well being top-up for Common Credit score by freezing it at £97 every week for current claimants, and slashing the speed to £50 every week for brand new claimants. The typical lack of advantages shall be £1,700 a yr for some three million folks.

Claimants with essentially the most severe circumstances, who’ve been assessed as by no means capable of work, won’t be topic to reassessment, ministers say, permitting them to have peace of thoughts.

The federal government will present £1bn for focused assist schemes to assist disabled folks into work. However it’s estimated these will assist just some 70,000 folks discover employment.

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Sir Keir Starmer defends his welfare reforms

1:23

PM defends ‘important’ welfare reforms

Ms Kendall mentioned a minister in her division is partaking with disabled folks and organisations in regards to the PIP evaluation course of, however mentioned: “The PIP assessment review will rightly take time and require extensive engagement, and we cannot wait for its conclusion to make the urgently needed changes to the PIP eligibility criteria.”

She mentioned: “This is going to be really challenging for a lot of people in Wales. We know more people in Wales will be affected by PIP than in any other part of the country.

“We do assume there must be reform of welfare as a result of we consider folks can work ought to work, however in Wales we’ve examples of the place we maintain folks’s palms, stand by them, we assist them into work, and we expect that is extra of a productive method.”

“These deliberate incapacity cuts must be scrapped – not rushed by means of with out correct scrutiny.”

TAGGED:aheadbenefitcontroversialdisabilityMPspensionsReformsSecretarytellsworkyear
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