The Government is planning to cut Personal Independence Payments and other benefits in a bid to save billions of pounds, according to reports. The cost of disability benefits is forecast to soar 60% to £35billion a year by 2029.
The Telegraph says Chancellor Rachel Reeves has told civil servants she wants to make serious cuts in unprotected departments – such as parts of the Department of Work and Pensions responsible for some benefits.
The crackdown will include tougher rules on who can get disability benefits – with an increased burden of proof that payments are needed – and alternatives to weekly disability benefit payments.
The changes will be revealed later this year, with a Budget in March and a spending review in June which will set the amount each department has to spend. The Telegraph says the DWP is being ‘targeted for significant cuts’.
People who claim personal independence payments can currently be given up to £9,600 a year to cover the additional costs of living with a disability or health problem. Part of the problem has been the surge in people claiming for mental health problems – with 5,300 new payments for mental health disability a month in 2023.
Before losing the election, the Consertvative Government was planning to reduce the number of mental health conditions that would qualify for PIP. The new Government is reported to be continuinbg to look at this policy.
People could also be asked to provide more medical evidence before qualifying for disability benefits, and some people may lose cash benefits altogether with a new system being put in place to offer support.
A DWP spokesman said: “We don’t comment on speculation. We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work. Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring.
“This will be part of a proper plan to help disabled people who can work secure employment while ensuring support is provided for those who need it.”