Government Launches Review of Personal Independence Payment Amid Labour’s Cost-Cutting Benefit Reforms
The UK government has initiated a review of the Personal Independence Payment (PIP), a vital benefit for individuals with long-term health conditions or disabilities, as part of Labour’s cost-cutting benefit reforms. According to The Independent, Work and Pensions Secretary Liz Kendall confirmed the review, stating that the Department for Work and Pensions (DWP) will engage with disabled individuals and relevant organisations to explore potential adjustments to eligibility criteria.
Currently, approximately 3.7 million people across England, Wales, and Northern Ireland receive PIP, a benefit designed to assist those facing challenges due to long-term physical or mental health issues. As The Independent reports, changes to the health-related benefit formed the bulk of savings in Labour’s ‘Pathways to Work’ Green Paper, with the Office for Budget Responsibility (OBR) projecting that anticipated changes could impact around 800,000 recipients.
The announcement has prompted calls from several Labour MPs for Ms Kendall to release an impact assessment detailing the potential consequences of these changes, as they will likely be expected to vote on the measures before this becomes available. Around 40 MPs are now expected to mount a rebellion against the plans when they are presented to Parliament. As quoted in The Independent, Ms Kendall said: "Personal independence payments is a crucial benefit that makes a contribution towards the extra costs of living with a disability. I know how anxious many people are when there’s talk about reform, but this Government wants to ensure PIP is fair for people who need it now and into the future."
Labour MP Imran Hussain (Bradford East) expressed concerns that 41,000 disabled people in his constituency would be affected by the changes, stating that many of them were "rightly horrified" by Ms Kendall’s policy. He drew attention to the change which means people will now need to score four points on an individual disability assessment category, which can indicate difficulties with parts of day-to-day life. As The Independent reports, Mr Hussain said: "The four-point rule has the potential to devastate the lives of tens of thousands of people in Bradford overnight. These plans would take away the vital lifeline from those with the greatest need, living in the most deprived areas, often. I cannot support any cuts that worsen inequality in places like Bradford."
In response, Ms Kendall replied: "I hear very clearly what my honourable friend says, but I also want to be clear to the House – for people who can never work, we want to protect them. For disabled people who can work, we want to support them. The truth is that if you are a disabled person and in work, you are half as likely to be poor than if you are out of work. We want to improve people’s chances and choices by supporting those who can work, to do so, and protecting those who cannot."
The changes, which are part of a package of measures that could save £5 billion-a-year by the end of the decade, were announced by Chancellor Rachel Reeves in March. As The Independent notes, they include the reintroduction of reassessments for people on incapacity benefits, alongside improved support aimed at ensuring claimants "aren’t indefinitely written off". In a bid to focus personal independence payments (PIP) on those with higher needs, eligibility requirements would be tightened from November 2026 for the "daily living element" of the benefit.
Labour MPs Warinder Juss (Wolverhampton West) and Neil Duncan-Jordan (Poole) called for ministers to be transparent about how current claimants will be affected, warning that they could be pushed into poverty. As quoted in The Independent, Mr Juss said: "Can my right honourable friend please outline what analysis has been done to understand how the changes proposed in the pathways to work Green Paper will affect those who rely on PIP not just for employment support, but for their daily living and mobility needs?" Work and Pensions Minister Sir Stephen Timms said: "We are determined to open up opportunities for people who have been out of work, often for a long time, on health and disability grounds, give them the chance through much better employment support to get into work, but we recognise there will be people who will not be able to work and will never be able to work."
The review of PIP is expected to be a crucial aspect of Labour’s welfare reforms, with many disabled individuals and organisations anxiously awaiting the outcome. As The Independent reports, the government has promised to keep the House updated as the review progresses.
The proposed changes have sparked concerns that many disabled people may lose their benefits, with some experts predicting that the impacts could be even greater than projected. As the review gets underway, it remains to be seen how the government will address the concerns of disabled individuals and organisations, and what the ultimate impact will be on those relying on PIP.
This review comes at a critical time for welfare reforms, with many calling for a more comprehensive approach to supporting disabled individuals. The outcome of the review is expected to have far-reaching implications for the 3.7 million people currently receiving PIP, and for the future of welfare support in the UK.
Sources: The Independent – PIP changes: DWP to assess eligibility criteria as part of Labour’s cost-cutting benefit reforms.
