Uncertainty Looms Over Disability Benefits: Government Weighs Options Amid Internal Pressure

Ministers are reconsidering a proposal to freeze some key disability benefits, specifically Personal Independence Payments (PIP), amid growing dissent from within the Labour Party. Initially, it was reported that PIP would not increase in accordance with inflation for a year, prompting backlash from Labour MPs who expressed their opposition during meetings at No10. The government is expected to implement stricter eligibility criteria for PIP, which is a point of contention as it aims to cut billions from the welfare budget. Health Secretary Wes Streeting acknowledged he had not seen the proposals but noted that Work and Pensions Secretary Liz Kendall is seeking to prioritize support for those most in need.

Kendall is set to unveil a green paper outlining welfare reforms, which will also introduce a ‘right to try’ initiative. This initiative will permit people with disabilities to pursue employment without the fear of losing their benefits if their attempts do not succeed. Streeting criticized the prevailing notion of mental health diagnoses, suggesting that many individuals are being overlooked for necessary support.

The Chancellor, Rachel Reeves, will later reveal spending reductions in the welfare sector, estimated to be between £5 billion and £6 billion, further intensifying the discussion on how to manage the welfare system. Current forecasts predict that total spending on health and disability benefits will increase substantially in the coming years, with PIP alone projected to rise from £18 billion in 2023-24 to £34 billion by 2029-30.

Despite Labour’s majority potentially allowing any freeze to PIP to pass a vote, the internal rifts within the party could surface. Some MPs expressed concerns that limiting PIP eligibility could adversely affect vulnerable individuals. Nevertheless, sources indicate that spending on PIP is projected to continue increasing, albeit at a slower rate than previously anticipated. The looming changes follow the government’s decision to dismantle NHS England and are part of broader efforts to reform what they describe as a broken welfare system, aiming to balance the need for support for long-term sick and disabled individuals while remaining fair to taxpayers.