In a groundbreaking move that has sent shockwaves through political circles, Labour’s Work and Pensions Secretary Liz Kendall has announced significant changes to the welfare system.
Despite intense opposition from her own party, Kendall has stood firm on her decision to implement cuts aimed at saving the government £5 billion.
However, the controversial measures have sparked fierce debates, with critics arguing that the changes could harm the most vulnerable.
Tightening Eligibility for Disability Benefits
One of the most significant changes in the welfare overhaul is the tightening of eligibility for the Personal Independence Payment (PIP).
Previously, PIP was available to those with disabilities, regardless of their ability to perform basic daily tasks.
Under the new rules, however, only those who require assistance with basic tasks—like going to the bathroom or preparing food—will qualify for support.
The government anticipates that this measure could affect as many as 1.2 million people, who stand to lose up to £6,300 per year by 2030.
Plans to Eliminate Certain Disability Benefits
In addition to narrowing PIP eligibility, Kendall announced that certain benefits, specifically for those unable to work due to health issues, will be phased out entirely.
The government’s new approach aims to push more people into work, even those who face mental health challenges.
This move has drawn heavy criticism, with opponents arguing that it will disproportionately affect those who are already struggling.
New Restrictions on Universal Credit for Young People
Another major proposal involves restricting access to the health-related element of Universal Credit for young adults.
Under the new policy, individuals under the age of 22 will no longer be able to receive the health top-up, which is worth up to £419 per month.
This change could affect 66,000 young people and is expected to generate significant savings for the government.
However, critics argue that it may have detrimental effects on the lives of vulnerable young adults.
Backlash from Labour MPs and Charities
Kendall’s statement was met with immediate backlash from Labour MPs, including prominent figures such as John McDonnell, who warned that the reforms would lead to “immense suffering.”
Debbie Abrahams, chair of the Commons’ Work and Pensions Committee, also criticized the government for attempting to balance the national finances “on the back of sick and disabled people.”
The controversial changes have also sparked protests from charities and trade unions, with many accusing the government of targeting the most vulnerable in society.
What the Reforms Will Mean for Claimants
The welfare changes include a host of specific measures that will impact those currently receiving benefits.
From 2028, the work capability assessment for Universal Credit will be scrapped, with all claimants moved to a new, single assessment system.
Additionally, the government plans to introduce reassessments for incapacity benefits, with exceptions for those with lifelong conditions or those in end-of-life care.
A permanent increase in the Universal Credit Standard Allowance is also being planned.
By 2029, the allowance is expected to rise by £775 annually, which the government argues will address “perverse incentives” that currently encourage some to apply for higher health-related benefits.
Scrapping of Work Capability Assessments and Other Measures
As part of the reforms, the work capability assessment element of Universal Credit is being scrapped in 2028.
Instead, claimants will be assessed using a new, simplified process based on the Personal Independence Payment (PIP) criteria.
This change is aimed at making the benefits system more streamlined and efficient, though critics warn it could lead to more people losing their support.
Another key proposal is the introduction of a “right to try” for those claiming benefits.
This new policy will allow people to attempt to work without the risk of losing their benefits if they are unsuccessful.
The government is also exploring measures to encourage young people to join the Armed Forces in an effort to boost employment.
The Long-Term Impact of These Reforms
While the government has framed the reforms as a way to create a “more proactive, pro-work system,” the long-term impact remains unclear.
With many individuals set to lose critical benefits, the risk of deepening poverty and health issues for the most vulnerable remains high.
The Resolution Foundation, for example, estimates that the tighter restrictions on PIP will leave between 800,000 and 1.2 million people without vital financial support by 2030.
Critics Raise Concerns Over Health and Welfare
Several advocacy groups have voiced concerns that the proposed changes will worsen the UK’s already strained health and welfare systems.
The MS Society, for example, has warned that the changes will push more disabled people into poverty, while charities like Mind fear the impact on people with mental health conditions who rely on benefits like PIP to stay in work.
The backlash from Labour backbenchers and trade unions highlights the growing divide within the party over the government’s approach.
Many feel that these measures are driven more by short-term financial goals than by genuine concern for the well-being of the public.
Furthermore, the proposed cuts could come at a time when many Britons are already grappling with the aftermath of the pandemic and a rising cost of living.
What’s Next for the Welfare Reforms?
As the Green Paper outlining these changes goes out for consultation, the future of these reforms remains uncertain.
While the government insists that the overhaul will lead to a more sustainable and fair welfare system, the reality is that these cuts will have a profound impact on millions of people across the UK.
With opposition mounting from within Labour and from external organizations, the government will need to address these concerns if it hopes to avoid a backlash that could undermine public support for its broader agenda.