The growing controversy over potential cuts to Personal Independence Payment (PIP) has sparked urgent warnings from charities, with fears that such reductions could push 700,000 disabled households into poverty.
As Chancellor Rachel Reeves prepares to deliver the Spring Statement, concerns are mounting that any cuts would exacerbate the crisis, especially with PIP rejection rates already soaring above 332,000.
More than a dozen organisations have signed an open letter disputing Government claims that benefit cuts would encourage employment among disabled people.
The letter, signed by organisations including Disability Rights UK, Citizens Advice, Scope, and Sense, calls on Reeves to “safeguard” PIP benefits.
Charities emphasised that PIP is a “lifeline for disabled households” that often enables people to remain in work.
The letter stated: “We agree with the Government’s ambition to support more disabled people into work. However, making cuts to disability benefits will not achieve this goal or fix the system.”
The organisations warned that the rumoured £6bn worth of cuts could have a “catastrophic impact” on vulnerable households. They urged the Chancellor to “think again about cuts to disability benefits”.
The DWP is reporting many PIP claims rejected
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The warning follows recent data shared by Work and Pensions minister Sir Stephen Timms revealing that the DWP “disallowed” 332,800 PIP claims at assessment during the 2023/2024 financial year.
Of these rejected claims, only 13,500 were subsequently awarded PIP following an appeal – just four per cent of those initially disallowed.
A further 18,900 appeals have not yet been cleared, according to figures up to September 2024.
The high rejection rate comes amid criticism that the DWP is providing “unacceptably poor service” to disability benefits claimants. Many claimants face lengthy waits for their appeals to be processed.
A Government spokesperson defended the planned reforms, stating that the current welfare system is “broken and must change.
“Without reform, more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it’s bad for people, too.”
A Government spokesperson defended the planned reforms, stating that the current welfare system is “broken and must change
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Work and Pensions Secretary Liz Kendall has highlighted that 2.8 million people are out of work due to ill health.
The cost of working-age sickness and disability benefits has increased by £20 billion since the pandemic. It is projected to reach £70 billion over the next five years.
Charities insist there is “little evidence to suggest cutting benefits increases employment outcomes” and argue the benefits system needs reform, not cuts.
They acknowledge that while many disabled people want to work, they require appropriate support systems to help them find suitable employment. For others, work simply isn’t a viable option due to their conditions.
Shelley Hopkinson from Turn2us criticised DWP delays, saying: “When payments are delayed, people struggle to afford basic essentials and care, their health deteriorates, and the stress can affect their ability to work.”
DWP is making major changes to Universal Credit and PIPGETTYShe urged the Labour Government to prioritise creating a “fair, efficient, and accessible social security system.”
The Chancellor is set to deliver her spring statement on March 26, with welfare reform expected to be a key target for savings.
Ministers aim to achieve an 80 per cent employment rate through what they describe as “meaningful, principled reforms rather than arbitrary cuts to spending.”
With PIP rejection rates already high, disability advocates argue any further cuts would only deepen existing hardships.