Chancellor Rachel Reeves has been warned that slashing disability benefits could have a “catastrophic impact” on hundreds of thousands of households, as leading charities sound the alarm over welfare reforms.
More than a dozen organisations, including Disability Rights UK, Citizens Advice, Scope, and Sense, have written an open letter urging Ms Reeves to “safeguard” Personal Independence Payments (PIP) in her upcoming spring statement on March 26.
They caution that any cuts would drive 700,000 disabled households into poverty, rather than increasing employment levels as the Government claims.
The charities insist that reducing support will not incentivise work and instead advocate for improved systems to help disabled people find suitable employment.
“We agree with the Government’s ambition to support more disabled people into work. However, making cuts to disability benefits will not achieve this goal or fix the system,” they said.
“In fact, there is little evidence to suggest cutting benefits increases employment outcomes. We know the benefits system is broken and needs reform.”
They stressed that while many disabled people want to work, they require appropriate support. For others, work simply isn’t a viable option.
Spending Cuts Loom as Reeves Prepares Statement
With borrowing costs soaring and economic growth stagnating, Ms Reeves is expected to announce significant spending cuts later this month. Welfare reform is seen as a key area for potential savings.
Work and Pensions Secretary Liz Kendall has highlighted that 2.8 million people are out of work due to ill health, and that one in eight young people are not in education, training, or employment.
The cost of working-age sickness and disability benefits has surged by £20 billion since the pandemic and is projected to hit £70 billion over the next five years.
Ms Kendall has insisted that an upcoming Health and Disability Green Paper will set out plans to help those who can work back into jobs, rather than “write them off.”
But the charities – also including the MS Society, mental health charity Mind, Trussell Trust food banks, and Parkinson’s UK – have urged Ms Reeves to “think again about cuts to disability benefits.”
They emphasised the importance of PIP as a “lifeline for disabled households” that often enables people to remain in work.
A Government spokesperson defended the reforms, arguing that the current welfare system is “broken” and must change to support people into work while reducing the benefits bill.
“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,” the spokesperson said.
“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. That’s why, as part of our Plan for Change, we will bring forward proposals shortly to unlock work and help us reach our ambition of an 80 per cent employment rate.”
