Labour has unveiled plans for £6billion in benefits cuts, with five major changes to the welfare system announced by the Department for Work and Pensions just over half an hour ago.
The sweeping reforms include tougher eligibility tests for Personal Independence Payments (PIP), payment freezes, and significant changes to Universal Credit calculations.
Furthermore, the Government will also implement new employment support initiatives aimed at getting more people into work.
These changes come after Work and Pensions Secretary Liz Kendall expressed concern about individuals who are “taking the mickey” by claiming benefits when they should be working.
Notably, the planned reforms will particularly impact disabled individuals, with charities already voicing serious concerns.
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Here is a full list of the six changes being rolled out by the DWP, which will particularly impact those claiming Universal Credit and PIP:
- PIP payment cut
- PIP payment freeze
- Universal Credit basic payment rate rise
- Universal Credit eligibility rule change
- Employment support investment
Tougher eligibility tests for PIP will be a cornerstone of the reforms, with the DWP aiming to save £5billion by restricting access to this disability benefit.
In a recent interview with ITV News, Liz Kendall said the number of people pretending they cannot work is “not good enough” and “needs to stop.”
She added: “I don’t blame people for thinking that they can’t, because they’re stuck on a waiting list for treatment, they haven’t had the proper support that they might need from the job centre.”
Payment freezes form another key element of the plan, with benefits not increasing to match the rate of consumer price index (CPI) inflation.
A DWP spokesperson stated: “We have a duty to get the welfare bill on a more sustainable path and we will achieve that through meaningful, principled reforms rather than arbitrary cuts to spending.”
Universal Credit calculations will also change significantly, with increases to the basic rate for those seeking work or already employed.
However, those deemed unfit for work will see their Universal Credit payments reduced. The DWP spokesperson added that their Plan for Change will “unlock work and help us reach our ambition of an 80 per cent employment rate.”
The Government plans to invest £1billion of the savings into a significant employment support initiative for job seekers.
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A DWP spokesperson said: “We have been clear that the current welfare system is broken and needs reform, so that it helps long-term sick and disabled people who can work to find employment, and ensures people receive the support they need, while ensuring fairness for the taxpayer.”
They added: “Without reform more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it’s bad for people too.”
Disability charities have reacted with alarm to the proposed changes. James Taylor, Executive Director of strategy at Scope, warned: “Ripping PIP away will be catastrophic for disabled people. PIP exists because life costs more if you are disabled.”
He added that many disabled people use PIP to get to work and pay for essential equipment.
Laura Thomas from the MS Society expressed “deep concern” about the welfare cuts, saying people with MS are “filled with worry” about what these changes mean for them.
