The Government’s much-anticipated and hotly-debated benefits reforms are set for their first debate in Parliament today. The Welfare Reform Bill will be presented to the House of Commons, marking its first appearance in Parliament. This will enable MPs to scrutinise the proposals thoroughly and understand how Labour intends to cut back the Department for Work and Pensions’ colossal £275 billion budget, which saw a 15 per cent increase last year.
Significant changes expected include altering the eligibility criteria for England’s primary disability allowance, the Personal Independence Payment (PIP). Furthermore, ministers have indicated plans to reduce the sickness-related component of Universal Credit (UC) and implement a delay in access to it, requiring claimants to be at least 22 years old.
Aimed at transitioning more people from sickness benefits into work, these reforms form part of a strategy that the Government believes could save up to £5 billion annually. However, despite the potential savings, a showdown is imminent as backbench Labour MPs have previously voiced strong opposition to the plans, labelling them « impossible to support » just last month.
Labour MP Brian Leishman condemned the reforms as « awful », stating: « I’ll vote against these awful welfare reforms. A Labour government should lift people out of poverty, not put people into it. If you agree, then please write to your MP and tell them that. », reports Bristol Live.
The latest legislative move aligns with fresh data showing that over 3.7 million residents in England and Wales are currently receiving Personal Independence Payment (PIP), with a notable rise in teenage and young adult claimants.
New statistics unveiled by the Department for Work and Pensions on Tuesday disclosed a record high of 3.74 million people in England and Wales on the PIP list as of April this year, up from 3.69 million in January and an increase of 200,000 compared to the total of 3.54 million a year earlier.
Since the tracking of PIP claimants began in January 2019, starting with 2.05 million people, PIP has functioned as a benefit aimed at assisting those with long-term physical or mental health conditions or disabilities that cause difficulties with daily tasks or mobility.
The demographics of those receiving PIP are changing, with teenagers and young adults making up an increasing proportion; 16.5 per cent of claimants as of April this year were aged between 16-19, up from 14.6 per cent in April 2019.
Simultaneously, the 30-44 age group has also seen growth, while there’s been a decrease in claimants aged 45-59. Over the same period, the number of those aged 60-74 has gradually increased from 29.3 per cent to 30.8 per cent.
Work and Pensions Secretary Liz Kendall has reportedly agreed to implement vital « non-negotiable » protections into the Bill, ensuring people who lose eligibility for Personal Independence Payment (PIP) will still receive 13 weeks of payments, increased from the initial four-week proposal.
This amendment is seen as a strategic move to mitigate backlash from Labour MPs against broader reform efforts, although one MP dismissively remarked it as « not very much really ».
Officials at Downing Street have reiterated their commitment to the reforms, underscoring their importance as supported by assertions from the Prime Minister, the Chancellor, and the Work and Pensions Secretary about the essential nature and urgency of the reforms.
In a statement emphasising the Government’s position, a spokesperson from No 10 declared: « You’ve heard that from the Prime Minister, the Chancellor, the Work and Pensions Secretary, on the principles behind this and the urgent need for this. »
The spokesperson pointed to alarming data, adding: « You have the statistics, they show we have the highest level of working age inactivity due to ill health in Western Europe. »
Highlighting post-pandemic recovery concerns, they continued: « We’re the only major economy whose employment rate hasn’t recovered since the pandemic. »
Despite the forthcoming alterations, PIP remains key as a non-means-tested benefit for disabled people and those with long-term health conditions, whether employed or not. However, the Government’s ambition is to roll out a « system that is fairer » with the proposed changes.
The proposed changes to Pip are expected to cut benefits for around 800,000 people.
Ms Kendall has noted that 1,000 new Pip claims are submitted daily, amounting to « the equivalent of adding a city the size of Leicester every single year ».
