Labour welfare reforms include 'unprecedented disability benefits cuts', Joseph Rowntree Foundation says

The changes, announced by Work and Pensions Secretary Liz Kendall in Parliament, would cut £5bn of the Government’s spiralling welfare bill in 2029-30.

Ms Kendall claimed the current social security system is “failing the very people it is supposed to help and holding our country back”.

She said the “facts speak for themselves” with the number of personal independence payment (Pip) claims set to double over this decade - with four times as many claims in the North.

Ms Kendall announced the “work capability assessment” for universal credit – which is used to determine eligibility for incapacity benefit payments based on someone’s fitness for work – will be scrapped in 2028.

She said instead extra financial support for health conditions will in future be based on a person’s health or disability, rather than their capacity to work.

She also said the Government will bring in a “permanent, above-inflation rise” to the standard allowance of universal credit as well as legislating to “rebalance” payments for the benefit.

Ms Kendall said this would equate to a £775 annual increase in cash terms by 2029.

She said this was a “decisive step to tackle the perverse incentives in the system”, with the Government previously saying the current system incentivises people to say they cannot work “simply to get by financially”.

She confirmed that Pip would not be frozen, as had been rumoured, and added that the Government would legislate for a “right to try … guaranteeing that work in and of itself will never lead to a benefit reassessment”.

Serious concerns have been raised by a number of charities, including the JRF, and Labour MPs.

The JRF’s chief executive, Paul Kissack, said: “No truly moral choice would leave disabled people without the very support that is designed to allow them to lead a dignified life, nor would it leave them facing hardship.

“These would be unprecedented disability benefits cuts.

“Ideas like the Right to Try Guarantee help to remove the barriers that prevent people from working but enormous cuts mean the Government risks undermining these positives.

“Making it harder for people to qualify for support, or cutting their support, puts more pressure on people who are already struggling to cope.”

He added: "A government that came to office pledging to end the moral scar of food bank use clearly should not be taking steps that could leave disabled people at greater risk of needing to use one."

Labour MPs also hit out at the Government, with Imran Hussain, Bradford East MP, telling Ms Kendall: “The reality remains that over the last few weeks, thousands of the most severely disabled people in my constituency and millions across the UK, have watched in disbelief as politicians debate cuts to the support that enables their very survival, leaving many at breaking point.

“Does the Secretary of State understand the real fear and distress that this has caused?”

While Rachael Maskell, York Central MP, asked Ms Kendall to ensure “disabled people are consulted and involved in that decision-making process, but also that we ensure that people maintain their independence, their psychological safety, their dignity, and aren’t pushed further into poverty”.