Work and pensions secretary tells MPs controversial disability benefit reforms will go ahead next year
The government has told MPs it will not back down from its controversial reforms to disability benefits, which are set to be introduced to parliament later this month.
More than 100 Labour MPs are thought to have concerns about the plans to cut nearly £5bn from the welfare bill by restricting personal independence payments (PIP) and the health top-up to Universal Credit.
Charities say the changes will have a "catastrophic" effect on vulnerable people.
3:06
The chair of the Commons' Work and Pensions Committee wrote to the secretary of state, Liz Kendall, last month, calling on the government to delay the changes until a full assessment is carried out of the impact on employment, poverty and health.
Labour MP Debbie Abrahams wrote that while there was a case for reform to disability benefits, "the evidence indicated [these changes] might not improve outcomes for most claimants, but instead push many into poverty and further away from the labour market".
But Ms Kendall has written back, in a letter made public on Wednesday, to reject the idea because the bill needs final approval from parliament in November in order for the changes to take effect in 2026.
She wrote: "We need urgent action to help people who can work, into work. With one in eight young people now not in education, employment or training and nearly 2.8 million people out of work due to long-term sickness, and spending on health and disability benefits set to rise by an additional £18bn, we must change course.
"We have consistently been clear that we are not consulting on every proposal.
"Instead, parliament will have the opportunity to fully debate, propose amendments to, and vote on areas where we have announced urgent reforms that are not subject to consultation.
"With PIP caseload and costs forecast to continue rising, reforms are needed now to make the system sustainable, while supporting those people with the greatest needs."
3:38
What is the government's plan?
The government says the PIP caseload has more than doubled from 15,000 new claims per month in 2019 to 34,000. PIP is a benefit to help disabled people with the increased costs of day-to-day living.
It is proposed that claimants will need to achieve four points out of eight in their assessment to qualify for the benefit, and the government says some 370,000 existing claimants will lose out when reassessed.
Ms Kendall says the growth in claims means the PIP caseload will still increase by the end of the parliament.
The government will also tackle what Ms Kendall called the "perverse incentive" to claim the health top-up for Universal Credit by freezing it at £97 a week for existing claimants, and slashing the rate to £50 a week for new claimants. The average loss of benefits will be £1,700 a year for some three million people.
Claimants with the most serious conditions, who have been assessed as never able to work, will not be subject to reassessment, ministers say, allowing them to have peace of mind.
The government will provide £1bn for targeted support schemes to help disabled people into work. But it's estimated these will help only some 70,000 people find employment.
1:23
Ms Kendall said a minister in her department is engaging with disabled people and organisations about the PIP assessment process, but said: "The PIP assessment review will rightly take time and require extensive engagement, and we cannot wait for its conclusion to make the urgently needed changes to the PIP eligibility criteria."
'Deeply disappointing news'
The first minister of Wales, Eluned Morgan, who is gearing up for elections next year, told Sky News she had spoken to Ms Kendall about her concerns last week.
She said: "This is going to be really challenging for a lot of people in Wales. We know more people in Wales will be affected by PIP than in any other part of the country.
"We do think there needs to be reform of welfare because we believe people can work should work, but in Wales we have examples of where we hold people's hands, stand by them, we help them into work, and we think that's more of a productive approach."
Labour MP Richard Burgon, who has vowed to vote against the reforms, said: "This will be deeply disappointing news for all the MPs who've been urging the government to delay this decision. Instead of allowing time for proper scrutiny and meaningful dialogue with disabled people, the government has brushed aside MPs' genuine concerns.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
27 minutes ago
- Telegraph
Taxpayers hand over £8bn more as Reeves's raids kick in
Taxpayers have forked out an extra £8.6bn in just two months as Rachel Reeves' Budget starts to bite, new figures show. Data from HM Revenue and Customs (HMRC) shows that tax receipts hit £142.8bn for April and May, a rise of more than 6pc compared to the same period last year. Almost £3 in every additional £4 raised came from income tax and National Insurance, alongside increased revenue from capital gains and inheritance tax. Tax expert Rachel Griffin called the increase 'another chapter in the Government's stealth tax strategy', while retirement specialist Stephen Lowe said Labour's 'tax train showed absolutely no signs of running out of steam'. In her maiden Budget in October, the Chancellor raised employers' National Insurance contributions from 13.8pc to 15pc and reduced the salary at which they become due from £9,100 to £5,000. She also retained the Conservatives' plans to freeze income tax thresholds. The moves came despite Labour's manifesto promise not to raise taxes on working people. As a result of the changes, HMRC received an extra £6.1bn in revenue for the two measures over April and May compared to last year, with £3.6bn in additional income tax and another £2.5bn in National Insurance contributions. Ms Griffin, of Quilter, said: 'HMRC's latest figures for May 2025 mark another chapter in the Government's stealth-tax strategy. Despite no new headline tax rises, receipts continue to climb thanks to frozen thresholds and slashed allowances. 'With income tax thresholds still frozen, many workers are paying a larger share of their earnings in tax simply due to modest pay rises, even when those increases fail to match inflation. 'This month's figures also capture the first full month's impact of the April changes to employer National Insurance contributions. While the policy may help shore up the public finances, it could also influence hiring decisions and wage growth in the months ahead.' There was also a £97m increase in inheritance tax receipts. The amount is expected to increase quickly next year after the Chancellor's decision to halve agricultural and business property relief after the first £1m of assets. From April 2027, pensions will also be considered for inheritance tax. Mr Lowe, of Just Group, said: 'The Treasury's inheritance tax revenues continue to surge with this tax train showing absolutely no signs of running out of steam through the first couple of months in this financial year. 'The reforms announced at the autumn Budget, which included further extending the threshold freeze and tightening the exemptions for pension wealth, will likely tip more estates into paying the tax and further boost the Chancellor's coffers.' There was also an increase of £106m in capital gains receipts, which have continued to rise following changes implemented in October last year. The Chancellor increased the lower rate from 10pc to 18pc and the higher rate from 20pc to 24pc for shares and other non-property assets. Richard Bate, of law firm Weightmans, said: 'With inheritance tax thresholds frozen and key reliefs due to be curtailed from 2026, families and business owners are acting early – restructuring their estates while current capital gains tax rates and allowances remain in place. 'But in doing so, many are facing an unwelcome double tax hit – capital gains tax now, followed by potential inheritance tax later if planning isn't carefully managed.'
Glasgow Times
34 minutes ago
- Glasgow Times
Minister insists no major welfare rebellion on the horizon after whip quits
Culture Secretary Lisa Nandy said Vicky Foxcroft was the only frontbencher who had spoken to her about resigning. MPs must 'look to their conscience' when deciding how to vote, Ms Nandy said, but added that the Government believes the Commons will back the reforms. Vicky Foxcroft (PA) Lewisham North MP Ms Foxcroft said she understood 'the need to address the ever-increasing welfare bill' but did not believe the proposed cuts 'should be part of the solution', in her resignation letter to the Prime Minister. Sir Keir Starmer has faced a backlash from some Labour MPs over proposals to reform the welfare system, which are expected to save up to £5 billion a year. Ms Nandy said a 'handful' of backbench MPs had expressed concerns to her about the 'detail' of the Bill, but added she was confident the Government had listened and the package of reforms was 'absolutely right'. 'It would be wrong to say that when you bring forward big reforms, there aren't concerns and there aren't dissenting voices, of course there are. But Vicky is the only frontbencher that I've had a conversation with about resigning,' she told BBC Breakfast. She told Times Radio that Ms Foxcroft 'did the honourable thing' by standing down. 'If you can't stick with collective responsibility in Government, you have to resign. 'She's done the honourable thing. It will enable her to have a voice, and she – as the former shadow disabilities minister – is very keen to use it. 'But I think most Labour MPs, including her, agree with the principle of the reforms that we're making.' She added: 'It's now up to every MP, as it always is at moments of major reform, to look to their conscience and vote the way that they believe is right. 'And we believe this package of reforms are right and will carry the confidence of the House.' Ms Foxcroft is the second Labour frontbencher to go in protest over policy issues after Anneliese Dodds quit as development minister over cuts to the aid budget. Anneliese Dodds (Ben Whitley/PA) Rebel Labour MPs welcomed Ms Foxcroft's decision, with Hartlepool's Jonathan Brash saying he had the 'utmost respect' for her 'principled stand' and Crewe and Nantwich's Connor Naismith saying it 'must have been an incredibly difficult decision but she should be commended for standing by her principles'. She said she had wrestled with whether to resign or remain in the Government and 'fight from within'. 'Sadly it… now seems that we are not going to get the changes I desperately wanted to see. 'I therefore tender my resignation as I know I will not be able to do the job that is required of me and whip – or indeed vote – for reforms which include cuts to disabled people's finances.' Legislation introduced into Parliament on Wednesday includes a tightening of the criteria for the main disability payment in England, the personal independence payment (Pip). Ministers also want to cut the sickness-related element of universal credit (UC), and delay access to it so only those aged 22 and over can claim it. The package of reforms is aimed at encouraging more people off sickness benefits and into work, but dozens of Labour rebels said last month that the proposals were 'impossible to support'. Pip is aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition. Data published on Tuesday showed 3.7 million people in England and Wales claimed Pip, up from 2.05 million in 2019, with teenagers and young adults making up a growing proportion of claimants. Around 800,000 people are set to lose out on the benefit under the Government's proposals, according to an impact assessment published alongside Wednesday's legislation. The assessment also confirmed a previous estimate that 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/30, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Responding to Ms Foxcroft's resignation, a Government spokesperson said: 'This Labour Government was elected to deliver change. The broken welfare system we inherited is failing the sick and most vulnerable and holding too many young people back. It is fair and responsible to fix it. 'Our principled reforms will ensure those who can work should, that those who want to work are properly supported, and that those with most severe disabilities and health conditions are protected.'
South Wales Argus
34 minutes ago
- South Wales Argus
Minister insists no major welfare rebellion on the horizon after whip quits
Culture Secretary Lisa Nandy said Vicky Foxcroft was the only frontbencher who had spoken to her about resigning. MPs must 'look to their conscience' when deciding how to vote, Ms Nandy said, but added that the Government believes the Commons will back the reforms. Vicky Foxcroft (PA) Lewisham North MP Ms Foxcroft said she understood 'the need to address the ever-increasing welfare bill' but did not believe the proposed cuts 'should be part of the solution', in her resignation letter to the Prime Minister. Sir Keir Starmer has faced a backlash from some Labour MPs over proposals to reform the welfare system, which are expected to save up to £5 billion a year. Ms Nandy said a 'handful' of backbench MPs had expressed concerns to her about the 'detail' of the Bill, but added she was confident the Government had listened and the package of reforms was 'absolutely right'. 'It would be wrong to say that when you bring forward big reforms, there aren't concerns and there aren't dissenting voices, of course there are. But Vicky is the only frontbencher that I've had a conversation with about resigning,' she told BBC Breakfast. She told Times Radio that Ms Foxcroft 'did the honourable thing' by standing down. 'If you can't stick with collective responsibility in Government, you have to resign. 'She's done the honourable thing. It will enable her to have a voice, and she – as the former shadow disabilities minister – is very keen to use it. 'But I think most Labour MPs, including her, agree with the principle of the reforms that we're making.' She added: 'It's now up to every MP, as it always is at moments of major reform, to look to their conscience and vote the way that they believe is right. 'And we believe this package of reforms are right and will carry the confidence of the House.' Ms Foxcroft is the second Labour frontbencher to go in protest over policy issues after Anneliese Dodds quit as development minister over cuts to the aid budget. Anneliese Dodds (Ben Whitley/PA) Rebel Labour MPs welcomed Ms Foxcroft's decision, with Hartlepool's Jonathan Brash saying he had the 'utmost respect' for her 'principled stand' and Crewe and Nantwich's Connor Naismith saying it 'must have been an incredibly difficult decision but she should be commended for standing by her principles'. She said she had wrestled with whether to resign or remain in the Government and 'fight from within'. 'Sadly it… now seems that we are not going to get the changes I desperately wanted to see. 'I therefore tender my resignation as I know I will not be able to do the job that is required of me and whip – or indeed vote – for reforms which include cuts to disabled people's finances.' Legislation introduced into Parliament on Wednesday includes a tightening of the criteria for the main disability payment in England, the personal independence payment (Pip). Ministers also want to cut the sickness-related element of universal credit (UC), and delay access to it so only those aged 22 and over can claim it. The package of reforms is aimed at encouraging more people off sickness benefits and into work, but dozens of Labour rebels said last month that the proposals were 'impossible to support'. Pip is aimed at helping with extra living costs if someone has a long-term physical or mental health condition or disability and difficulty doing certain everyday tasks or getting around because of their condition. Data published on Tuesday showed 3.7 million people in England and Wales claimed Pip, up from 2.05 million in 2019, with teenagers and young adults making up a growing proportion of claimants. Around 800,000 people are set to lose out on the benefit under the Government's proposals, according to an impact assessment published alongside Wednesday's legislation. The assessment also confirmed a previous estimate that 250,000 more people, including 50,000 children, are likely to fall into relative poverty after housing costs in 2029/30, although the Government repeated that this does not take into account the potentially positive impact of £1 billion annual funding by then for measures to support people into work. Responding to Ms Foxcroft's resignation, a Government spokesperson said: 'This Labour Government was elected to deliver change. The broken welfare system we inherited is failing the sick and most vulnerable and holding too many young people back. It is fair and responsible to fix it. 'Our principled reforms will ensure those who can work should, that those who want to work are properly supported, and that those with most severe disabilities and health conditions are protected.'
