PIP and Universal Credit Cuts Revealed as Labour Releases DWP Reform Strategy

PIP and Universal Credit Cuts Revealed as Labour Releases DWP Reform Strategy

The much-debated welfare reforms introduced by the government are scheduled to make their first appearance in Parliament today.

These changes are set to be discussed in the House of Commons, where Members of Parliament (MPs) will have their first opportunity to evaluate the Labour Party’s plan to scale back the Department for Work and Pensions’ (DWP) substantial £275 billion budget.

Key Reforms and Focus Areas

At the core of these far-reaching changes is the proposed adjustment to the eligibility criteria for Personal Independence Payment (PIP), which is the main disability allowance in England.

The government intends to tighten the rules governing who qualifies for PIP, potentially limiting access to those who meet stricter conditions.

Additionally, there are plans to modify the Universal Credit (UC) system by reducing and deferring the illness-related component, with eligibility being restricted to individuals aged 22 and over.

These changes, aimed at transitioning individuals receiving sickness benefits back into the workforce, are expected to result in an annual saving of approximately £5 billion for the government.

Controversy and Opposition

The reforms have sparked significant opposition within the Labour Party, particularly among backbench MPs, many of whom have voiced strong objections.

Labour MP Brian Leishman has criticized the overhaul as “awful,” stressing that a Labour government should focus on lifting people out of poverty, not pushing them further into it. He has called on constituents to write to their MPs to express their concerns about the reforms.

As the proposal moves through Parliament, the latest Department for Work and Pensions (DWP) statistics reveal that over 3.7 million people in England and Wales are currently receiving PIP benefits. This marks an increase in the number of young claimants, with teenagers and young adults increasingly relying on this support.

Surge in PIP Claimants

Recent figures show that the number of PIP claimants across England and Wales rose to 3.74 million in April, up from 3.69 million in January. This surge in claimants is a significant rise from the 3.54 million reported the previous year.

Looking back further, the number of PIP claimants was just 2.05 million in January 2019, reflecting the growing demand for financial assistance for individuals with long-term physical or mental health conditions or disabilities.

Notably, there has been an increase in the proportion of young claimants aged 16-19, with this group now accounting for 16.5% of total claimants in April 2025, up from 14.6% in 2019.

The age group of 30-44 years has also seen growth in claimants, while the number of individuals claiming PIP in the 45-59 age bracket has declined. The number of claimants in the 60-74 age group has risen slightly from 29.3% to 30.8%.

Government’s Response and Safeguards

Liz Kendall, the Secretary of State for Work and Pensions, has acknowledged the need to include non-negotiable safeguards in the new legislation.

These safeguards will ensure that recipients who no longer meet the new PIP criteria will continue to receive payments for an additional 13 weeks, an increase from the current 4-week period.

This concession is seen as an effort to address concerns within the Labour Party about the potential negative impact on vulnerable individuals.

Despite these concessions, some MPs have downplayed their significance, arguing that they do not offer substantial protection for claimants.

Downing Street has maintained its commitment to the proposed welfare reforms, emphasizing their importance in addressing the high level of working-age inactivity caused by illness in the UK.

The government also pointed out that the UK is the only major economy where employment rates have not fully recovered post-pandemic.

As the reforms continue to progress through Parliament, the government remains steadfast in its belief that these changes are essential for creating a fairer system.

Despite the pushback, they argue that Personal Independence Payment (PIP) will remain a crucial non-means-tested benefit for people with disabilities or long-term health conditions, whether they are employed or not.

However, these proposed changes could impact approximately 800,000 PIP claimants, leading to potential reductions in benefits for some individuals.

FAQs

What is the proposed change to PIP eligibility?

The government intends to introduce stricter eligibility criteria for Personal Independence Payment (PIP), potentially limiting access to those who meet tighter conditions.

How much money could these reforms save the government?

The government estimates that these welfare reforms could lead to an annual saving of £5 billion.

Will there be any safeguards for PIP claimants?

Yes, Liz Kendall has announced that there will be 13-week safeguards for recipients who fail to meet the new PIP criteria, up from the current 4 weeks.

Leave a Reply

Your email address will not be published. Required fields are marked *