Ministers are reportedly considering abandoning plans to freeze some disability benefits following strong opposition from within the Labour Party. Initial proposals suggested that Personal Independence Payments (PIP) would not rise in line with inflation for a year, but this has sparked significant backlash from usually loyal Labour MPs. The potential freeze, part of broader welfare reforms, could have cut billions from the welfare budget, but dropping it may help the government avoid a damaging vote in the Commons.
Work and Pensions Secretary Liz Kendall is set to unveil details of the reforms in a green paper next week. The changes are expected to include tighter eligibility criteria for PIP, which is designed to help cover the extra living costs for those with long-term physical or mental health conditions. However, the proposed freeze has drawn criticism from MPs who argue it would disproportionately affect vulnerable individuals.
In addition to the eligibility changes, the reforms will introduce a “right to try” guarantee, allowing people with disabilities to take up employment without the risk of losing their benefits if the job does not work out. This measure aims to encourage more disabled individuals to enter the workforce while maintaining a safety net.
Chancellor Rachel Reeves will reveal the full scale of welfare spending reductions, estimated to be between £5bn and £6bn, in her Spring Statement on 26 March. Reeves has emphasized the need to “get a grip” on the welfare bill, stating that the current system is not working for taxpayers or recipients. Total spending on health and disability benefits is projected to rise from £64.7bn in 2023-24 to £100.7bn by 2029-30, with PIP accounting for a significant portion of this increase.
PIP spending, which totalled £18bn in 2023-24, is forecast to nearly double to £34bn by 2029-30, with the number of claimants expected to rise from 2.7 million to 4.2 million. While the government aims to curb this growth, sources indicate that even with tighter eligibility, PIP spending will continue to rise, albeit at a slower rate.
The proposed reforms come amid broader changes to the welfare system and public services. Health Secretary Wes Streeting has announced plans to streamline the NHS, including the abolition of NHS England, the arms-length body responsible for running the health service. Streeting has pledged to cut “bloated bureaucracy” and improve efficiency, with further changes expected in the coming months.
Despite the government’s large Commons majority, the potential freeze on PIP has highlighted internal divisions within Labour. MPs supportive of welfare reform have sought assurances that severely disabled individuals will not be forced to work or lose their benefits. The government has reiterated its commitment to creating a fairer system that supports those who can work while protecting the most vulnerable.
For more political updates, visit London Pulse News.
