The new Labour Party government is looking to slash a Department for Work and Pensions ( DWP ) benefit in the next Budget. The Labour Party Chancellor Rachel Reeves could target the DWP’s Personal Independence Payment, the Telegraph reports.
The annual cost of support payments for people with disabilities and health conditions is forecast to soar from £22 billion to £35 billion by 2029 – a 60 per cent increase. Ms Reeves is said to have made clear to the Treasury that she wants to get “tough” on spending rather than considering new tax rises.
Personal independence payments, which can be up to £9,600 a year, are designed to cover the extra costs incurred by people with disabilities and other health issues. But since their introduction in 2013, the number of people using them has surged.
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The next spring budget in the UK is scheduled for Wednesday, March 26, 2025. The Chancellor of the Exchequer will present the budget at that time. In 2019, around 2,200 new payments a month were being made to people with anxiety or depressive orders. That more than doubled to 5,300 new payments in 2023. Liz Kendall, the Work and Pensions Secretary, has rejected the idea of swapping the money for vouchers but other options are available.
Ms Kendall promised to end the “blame” culture shortly after taking up her role last summer. A DWP spokesman said in response to the reports from the national newspaper this weekend: “We don’t comment on speculation.”
The statement went on, with the DWP spokesperson saying: “We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work.
“Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring. This will be part of a proper plan to help disabled people who can work secure employment while ensuring support is provided for those who need it.”