Chancellor Rachel Reeves is preparing billions of pounds worth of cuts to disability benefits in an attempt to calm markets over its economic plan.
DWP set to ‘tighten’ rules around ‘what proof’ people need to claim PIP payments
The Labour Party government is plotting saving “billions” in disability welfare cuts to ease the current debt crisis. Labour Party Chancellor Rachel Reeves is preparing billions of pounds worth of cuts to disability benefits in an attempt to calm markets over its economic plan.
The Telegraph newspaper has reported No 10 and Treasury figures think significant reductions are needed in the welfare budget, including to Personal Independence Payments (PIP). 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.
The Department for Work and Pensions ( DWP ) and Labour are “exploring tightening the rules around what proof is needed to get disability payments and alternatives to the weekly cash handouts”, the newspaper has added.
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A senior government source said welfare reforms would show Labour is the “party of work”. However, one Whitehall insider expressed concerns over the Treasury’s “slash slash slash” agenda. Jack Meaning, Barclays Bank’s UK chief economist, said the soaring borrowing costs meant there was a “high chance” the Chancellor will be forced to announce emergency spending cuts this spring.
In the UK, around 3.6million people claim PIP and the money is used to help with the added costs of having a disability or health condition. There has been a lot of public discussion around the benefit over the last year after the previous Tory government announced major reform plans for it in a bid to reduce spending on the welfare system.
According to the latest DWP statistics, around 230,000 people filed their first PIP claim between August and the end of October this year. This indicates that around 80,000 applications are made for PIP each month.
A DWP spokesman said: “We don’t comment on speculation. 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.”