Labour’s first budget in over a decade is imminent and Chancellor Rachel Reeves is expected to make a number of changes. While capital gains, inheritance tax and pensions are predicted to be targeted to plug the Conservatives’ £22billion “black hole”, some changes could hit benefit claimants too – either now or soon.
Changes to PIP are planned once a review has been completed. However, this isn’t the same across all DWP benefits as some changes to other systems like Universal Credit are due tomorrow.
The Guardian reported that a new repayment cap could be introduced, limiting the amount that can be deducted from a person’s benefits to repay loans or debts. On Universal Credit payments, this could see the current 25% deduction rate taken down to 15%.
The rates and updated amounts for other benefits are due to be confirmed tomorrow, including the amount that state pension will rise by next April. Universal Credit updated rates are also expected to be announced.
PIP is in the midst of a complete overhaul, with some proposals already being announced since Labour took to power as the party emphasised getting claimants who are able to work back into the workforce. Proposals for this overhaul included replacing the financial support PIP provides with vouchers, grants or even therapy.
However, decisions around these proposals likely won’t be announced tomorrow and the benefit is expected to remain the same for now. Previously, Sir Stephen Timms, Minister of State for Social Security and Disability, stated that the department is currently conducting a survey of PIP claimants.
Only once this study is complete can the proposals be weighed up against the needs of claimants. Currently, senior government sources have noted the earliest update on PIP reform is to be announced next spring.