Unlock Editor’s Digest Lock for Free
Approximately one million people were prevented from receiving health and disability benefits under welfare reform, and the government of Kielstarmer set up a course for a showdown with Labour MPs.
The plan aims to save £5 billion a year from the UK’s uplift benefits bill, released Tuesday by Work and Pension Secretary Liz Kendall, includes scaling of “personal independent payments” or PIPs, created to cover additional costs for people who cannot work for disabilities or health.
Under reform, PIP is rejected by many people with mental health, but according to those who described the plan, people with physical and mental illnesses can reduce their own benefits to a lower level.
Those changes would require a vote in the House of Representatives, people said. His ancestors and his ministers said they were opposed to the measures and opposed the chorus of backbench lawmakers, which raises the possibility of the biggest rebellion ever.
Dozens of Labour lawmakers have expressed serious concern about withdrawing or reducing support for those in need, and several ministers challenged Prime Minister Kiel starmer at a cabinet meeting last week.
However, priorities and Kendall, who presents her green paper on Tuesday, are determined to curb UK benefits spending.
According to the Institute for Financial Research, those claiming either disability or incompetent benefits from 2.8 million people in 2019 are currently around 4mn ages 16-64 – one in ten claims either disability or incompetent benefits.
More than half of that rise comes from an increase in claims related to mental health or behavioral conditions.
Kendall defended her upcoming reforms on Monday, saying, “There will always be people who cannot work due to the severity of their illness. … Those people will always be protected.”
Rachael Maskell, a former member of Labor Shadow Cabinet, said the Minister’s attempt to reassure the MP was “very inconsistent” with the scale of the proposed cut.
“If they come out with the Draconia measure, they still have to have proper consultations and there’s something to play for everything,” she added.
Prime Minister Rachel Reeves is trying to use cuts to lock in the financial holes caused by the speed of growth and increased borrowing costs.
The £9.9 billion headroom within Reeves’ fiscal rules in the October budget has been nearly wiped out, according to government officials. According to the rules, current spending must be subject to tax revenue by 2029-30.
Approximately one million people will receive health-related benefits by the end of the forecast period, primarily through changes to eligibility criteria for new claims, but those who explained in the plan, say, through reassessment of existing cases.
There is also a working ability assessment that determines who is eligible for additional support that is expected to be completely discarded due to a dramatic overhaul of the system.
Kendall also reduces the highest level of incompetent support, adding £416 per month, but increases the basic support rate for people on-site, known as Universal Credit, according to those who were described for the move.
Rebalance is not expected to be cost-neutral. The Treasury plans to bank more savings by reducing the highest incapacity support rate than pumping into universal credit growth.
Previous media reports argued that Kendall had planned to freeze disability benefits, so he was trying to avoid rising with inflation as he was likely to raise billions for the Treasury.
However, some Labour lawmakers believe the freeze is by no means a serious idea. One senior MP said the tactic is “the actual cut isn’t too bad to make it look like a concession.”
One finance official said the proposal was never taken seriously by the department.
Labour Whip was subjected to severe disciplinary action against rebel MPs last summer after they voted against welfare policies.
Another senior lawmaker said the backventure is experiencing intense emotions.
