The Department for Work and Pension (DWP) consultation into reforming sickness benefits in the UK, such as Personal Independence Payments (PIP) has been deemed “unlawful” by the High Court in a damning verdict.
This decision could impact Labour’s plans to cut benefits spending to generate savings for the Treasury.
In 2023, the then-Conservative Government launched a consultation into the Work Capability Assessment (WCA), the mechanism used to determine how much someone can work due to their illness or health condition.
At the time, the Tories asserted their aim to scrap the WCA and replace it with a “new personalised, tailored approach to employment support”. Under the reforms, the DWP presented the changes as helping disabled Britons join the workforce.
However, the High Court found the “compressed” consultation timetable to be “misleading and unfair” as stakeholders were only given eight weeks to respond to what was being proposed.
Among the reforms to the WCA would include how the DWP takes into account various factors in its decision-making, including people’s mobility, bladder or bowel incontinence, ability to leave the home, inability to function in social situations and work being potentially a risk to claimants.
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A DWP consultation into reforming disability benefits has been declared “unlawful” by the courts which could impact the Government’s saving plans
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During her Autumn Budget in October 2024, Chancellor Rachel Reeves hinted she would honour the DWP’s attempt to save money through the WCA overhaul that was put forward by her predecessor.
Reeves said: “First, we inherited the last Government’s plans to reform the Work Capability Assessment. We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary will bring forward.”
The proposals to the benefit eligibility rules were challenged in court by disability activist Ellen Clifford, whose lawyers argued that the main motivation in fact appears to be reducing welfare spending.
Campaigners have argued the suggested reforms to the WCA would see disabled benefit claimants lose £416 a month and be at risk of facing sanctions from the DWP.
Benefit payments could be cut as part of a DWP overhaul GETTYOn behalf of Clifford, her lawyers emphasised that there was not enough time for sufficient consultation on the potential changes and the DWP did not explain them property.
Furthermore, the claimant argued the reforms did not help more disabled people get into work, as was advertised, and those affected could not respond to the consultation properly.
In court, the DWP was ordered by the High Court to disclose key documents relevant to the case. It was found the department had not taken any employment or disability assessments of the proposals prior to the consultation but had launched a review into what savings could be made.
Reacting to this revelation, Clifford said: “The DWP’s revelation that they carried out absolutely no employment or disability impact assessment has confirmed my fears.
“This rushed and disingenuous consultation was just a smoke screen for cuts. It was never a legitimate attempt to hear the voices of deaf and disabled people or support them into work. In reality, a lot of people will struggle to pay everyday bills if these proposed changes go ahead.”
Today’s judgement from Mr Justice Calver said that the judicial review had “surmounted the substantial hurdle of establishing that the consultation was so unfair as to be unlawful”.
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He added: “The significance of the compressed consultation timetable is that it contributed to (a)the hurried publication of misleading and unfair consultation documents and (b) a failure adequately to explain the proposals themselves or the rationale for making the proposals.
“As a result, consultees required more time, not less, to understand and take advice on the effect of the proposals upon them. Moreover, the consultation was launched at a time when potential consultees would not have been anticipating the proposed policy developments contained in the consultation paper.”
This ruling comes as Reeves is facing further calls to cut public spending amid ongoing market turmoil. The private sector has reacted negatively to the Chancellor’s Budget decision and borrowing costs surged last week.
Furthermore, Pensions Minister Liz Kendall has pledged a benefits crackdown on young claimants who will lose payments if they do not take on work. GB News has contacted the DWP for comment.