Work and Pensions Secretary Liz Kendall arrives in Downing Street, London, for a Cabinet meeting, March 11, 2025
ALMOST two-thirds of disabled people on Personal Independence Payments (PIP) “will not cope” without it, a charity has warned, amid reports that the government will reduce the benefit.
Work and Pensions Secretary Liz Kendall is expected to unveil reforms aimed at reducing welfare costs that ministers have described as “unsustainable.”
Reports suggest that PIP, the main benefit for working-age adults both in and out of work, could be frozen rather than increased in line with inflation, delivering a real-terms cut for 3.6 million claimants.
A new analysis from Sense has found that 38 per cent of PIP recipients with complex needs are already behind on energy bills. Almost half — 46 per cent — are struggling to afford essential costs such as council tax and water, while 41 per cent are living in debt due to benefits failing to cover the cost of essentials like food.
Fifty-eight per cent of those polled reported significant ongoing extra costs due to disability and 53 per cent said their PIP payments were insufficient to cover those expenses.
Sense chief executive James Watson-O’Neill said PIP “exists because living with a disability means facing higher costs, from increased energy bills to specialised equipment and specific diets.”
“These additional expenses won’t disappear if eligibility is tightened. It will only plunge more disabled people into poverty.
“Making it harder to access benefits won’t help disabled people find jobs either. It will only deepen the struggle.”
Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.
The cost of living is the most important issue for many voters this election. It’s no surprise why. In 2022, nearly 4 million people in the UK experienced destitution, meaning they could not meet their basic physical needs such as having enough to eat and staying warm.
The UK’s social security system is failing in its core purpose to prevent poverty. And yet the Conservatives have promised more crackdowns on welfare, with the prime minister linking this with his pledge to lower taxes.
When the Conservative-Liberal Democrat coalition government came to power in 2010, they inherited a social security system in radically better shape than it is now. What happened?
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People received working-age benefit payments for different needs: jobseeker’s allowance, income support for single parents and incapacity benefit for long-term illness and disability. Housing benefit went directly to landlords to cover claimants’ rent.
Enter the global financial crisis. The Conservative-led government’s response was austerity cuts: cutting back on welfare to tackle the budget deficit.
Lowering the value of benefits is the biggest austerity cut to have affected incomes. In 2010, the government switched from uprating the value of benefits each year in line with the retail price index to using a different measure of inflation, the consumer price index, instead. This is usually lower and effectively makes payments worth less.
In 2012, the government introduced a new system of tougher rules and sanctions on people receiving benefits. Conservative politicians said this would end “the ‘something for nothing’ culture”, but the change has had lasting negative effects.
Benefit sanctions were always part of the system, but became extreme in 2012. If, for example, someone misses one Jobcentre appointment their benefit could be reduced or removed for 28 days.
Many people receiving benefits have been penalised with sanctions. Bricolage/Shutterstock
Other cuts to incomes followed the Welfare Reform Act 2012. The “bedroom tax” penalised social housing tenants who had “extra” bedrooms. The idea was to reduce renters’ housing benefit so they would downsize to a smaller home. However long-term housing shortages mean that smaller properties are rarely available.
In 2013, the household benefit cap was introduced to limit the maximum amount a family could receive in benefits payments. It had the most impact on families with children and those with high rents.
Universal credit
Universal credit, introduced in 2013, was billed as the biggest shake-up of benefits in 70 years. It promised to make work pay and simplify the system. It replaced separate tax credit, unemployment, lone parent, disability and housing payments with a single payment.
Research from think tank the Resolution Foundation suggests that universal credit provides more support for working people who rent their homes than the previous system. But disabled people who cannot work are likely to be much worse off than under the old system.
There are other problems with universal credit. Unlike under the previous system that gave housing benefit straight to landlords, claimants have to pay their rent from a pot of money provided by the government that is almost certainly too small to cover all their costs.
The first universal credit payment takes around five weeks to arrive, meaning people may fall into rent arrears. A result is that some landlords take legal action to evict those receiving universal credit.
The two-child limit was applied to tax credits and universal credit in 2017 to remove income for third or subsequent children. Large families faced increased poverty as a result.
In 2020, the pandemic hit. Universal credit and tax credits were raised by £20 per week, but this ended in late 2021. The cost of living crisis has since widened the gap between benefits and prices.
Today, the value of universal credit falls £890 per month short of the cost of living for single people over 25. This is because of the changes to uprating and the benefit freeze.
In Feburary 2024, charity the Trussell Trust published research showing that over half of people on universal credit had run out of money for food in the previous month.
What can the next government do?
The next UK government must make emergency repairs to social security to halt harrowing declines in health and lifeexpectancy. This should ensure a minimum acceptable standard of living, including restoring the value of benefits such as universal credit to cover the costs of living.
Since 71% of children living in poverty are in working families, employers should be required to pay the real living wage. In-work universal credit also needs to top up wages enough to make work pay.
Repairing the social safety net is an enormous challenge, but public support for it has been on the rise for years. In 2010, many people thought benefit claimants didn’t deserve any help. But from 2015 there has been a growing preference to help people receiving benefits.
This rhetoric is nothing new. Disabled people have faced an ongoing onslaught of negative headlines over the past few months.
The Prime Minister has previously spoken about ‘[squeezing] benefits to fund more tax cuts for workers’, pitting disabled people against the rest of society. Commentators, too, have taken to arguing that our benefits system ‘invites abuse’.
And this harmful attitude towards welfare is not partisan; Labour too have implied that there are too many people claiming disability benefits.
But disability benefits are not a problem that needs to be ‘controlled’. At its best, our welfare system enables disabled people to lead more independent and meaningful lives, offering them vital support to overcome the barriers they face. That is something people across the political spectrum should celebrate.
