The government has told MPs it will not back down from its controversial reforms to disability benefits, which are set to be introduced to parliament later this month.
More than 100 Labour MPs are thought to have concerns about the plans to cut nearly £5bn from the welfare bill by restricting personal independence payments (PIP) and the health top-up to Universal Credit.
Charities say the changes will have a “catastrophic” effect on vulnerable people.
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The chair of the Commons’ Work and Pensions Committee wrote to the secretary of state, Liz Kendall, last month, calling on the government to delay the changes until a full assessment is carried out of the impact on employment, poverty and health.
Labour MP Debbie Abrahams wrote that while there was a case for reform to disability benefits, “the evidence indicated [these changes] might not improve outcomes for most claimants, but instead push many into poverty and further away from the labour market”.
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But Ms Kendall has written back, in a letter made public on Wednesday, to reject the idea because the bill needs final approval from parliament in November in order for the changes to take effect in 2026.
She wrote: “We need urgent action to help people who can work, into work. With one in eight young people now not in education, employment or training and nearly 2.8 million people out of work due to long-term sickness, and spending on health and disability benefits set to rise by an additional £18bn, we must change course.
“We have consistently been clear that we are not consulting on every proposal.
“Instead, parliament will have the opportunity to fully debate, propose amendments to, and vote on areas where we have announced urgent reforms that are not subject to consultation.
“With PIP caseload and costs forecast to continue rising, reforms are needed now to make the system sustainable, while supporting those people with the greatest needs.”
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What is the government’s plan?
The government says the PIP caseload has more than doubled from 15,000 new claims per month in 2019 to 34,000. PIP is a benefit to help disabled people with the increased costs of day-to-day living.
It is proposed that claimants will need to achieve four points out of eight in their assessment to qualify for the benefit, and the government says some 370,000 existing claimants will lose out when reassessed.
Ms Kendall says the growth in claims means the PIP caseload will still increase by the end of the parliament.
The government will also tackle what Ms Kendall called the “perverse incentive” to claim the health top-up for Universal Credit by freezing it at £97 a week for existing claimants, and slashing the rate to £50 a week for new claimants. The average loss of benefits will be £1,700 a year for some three million people.
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Claimants with the most serious conditions, who have been assessed as never able to work, will not be subject to reassessment, ministers say, allowing them to have peace of mind.
The government will provide £1bn for targeted support schemes to help disabled people into work. But it’s estimated these will help only some 70,000 people find employment.
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Ms Kendall said a minister in her department is engaging with disabled people and organisations about the PIP assessment process, but said: “The PIP assessment review will rightly take time and require extensive engagement, and we cannot wait for its conclusion to make the urgently needed changes to the PIP eligibility criteria.”
‘Deeply disappointing news’
The first minister of Wales, Eluned Morgan, who is gearing up for elections next year, told Sky News she had spoken to Ms Kendall about her concerns last week.
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She said: “This is going to be really challenging for a lot of people in Wales. We know more people in Wales will be affected by PIP than in any other part of the country.
“We do think there needs to be reform of welfare because we believe people can work should work, but in Wales we have examples of where we hold people’s hands, stand by them, we help them into work, and we think that’s more of a productive approach.”
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Labour MP Richard Burgon, who has vowed to vote against the reforms, said: “This will be deeply disappointing news for all the MPs who’ve been urging the government to delay this decision. Instead of allowing time for proper scrutiny and meaningful dialogue with disabled people, the government has brushed aside MPs’ genuine concerns.
“These planned disability cuts should be scrapped – not rushed through without proper scrutiny.”
