Latest news with #DepartmentForWorkAndPensions
Daily Mail
a day ago
- Business
- Daily Mail
Benefits bill on course to rise by £18billion a YEAR without reform - equivalent to more than the entire police budget
Spending on sickness benefits is on course to rise by £18 billion without reform – more than the entire police budget. Work and pensions secretary Liz Kendall is facing a furious backlash from Labour MPs and campaigners who warn that 'cruel' cuts to disability benefits will drive hundreds of thousands into poverty. But official figures published alongside the Government's long-awaited welfare legislation yesterday reveal that spending on benefits will continue to soar even if the reforms survive a Commons rebellion, with many Labour MPs threatening the first big revolt of Keir Starmer 's premiership. An impact assessment reveals that spending on sickness and disability benefits for working-age adults is set to jump by £18 billion a year to £70 billion by the next election, if nothing is done to trim the bill. The report adds: 'The increase alone is more than the entire police budget.' The 2025-26 police budget is £17.4 billion. A Whitehall source said the surge in spending underlined the need for reform, adding: 'These figures show that the current welfare system is unsustainable.' Ms Kendall's reforms will trim £5 billion from the total unless they are blocked by mutinous Labour MPs. But spending on personal independence payments (PIP), which is at the centre of Labour's civil war on welfare, will rise by £8 billion to £31 billion – an increase of more than a third. Despite a tightening of eligibility criteria, the Department for Work and Pensions estimates another 750,000 will be claiming the benefit by the next election. Ms Kendall said the welfare package 'marks the moment we take the road of compassion, opportunity and dignity'. The cuts were needed to put the welfare budget 'on a more sustainable path'. 'This is about ensuring fairness for people who need support and fairness for the taxpayer too,' she added. But Labour critics warned there was 'no moral case' for taking benefits away from people currently classed as 'disabled'. Labour MP Bell Ribeiro-Addy said the scale of the cuts 'would have made George Osborne blush'. She added: 'We cannot underestimate their human and political cost. The public will not forgive us if we remove support from those most in need of it.' Fellow Left-winger Richard Burgon said: 'These cruel cuts will drive hundreds of thousands of people into poverty. These cuts should have been dropped – now they should be voted down.' More than 100 Labour MPs have raised concerns about the proposals with party whips, but ministers are privately confident they can avoid a humiliating defeat in the Commons early next month. The most controversial cut involves ending eligibility for PIP payments for 800,000 people, who will lose around £4,500 each. The Government's own assessment suggests this will drive 250,000 people into poverty, including 50,000 children. The package also involves 'rebalancing' Universal Credit (UC) payments to end the 'perverse' incentive that makes it attractive for people to claim they are too sick to work. The standard UC payment of just over £400 a month will be increased by more than inflation, while the 'health element', currently worth an extra £423, will be frozen. The changes will hit around three million people. The Policy Exchange think-tank has warned that the sickness benefits bill will hit £100 billion by 2029/30 – meaning £1 in every £4 of income tax will be spent on it.
Yahoo
2 days ago
- Politics
- Yahoo
Flagship welfare reform plans to be introduced in Parliament
The Government's flagship reforms to the welfare system are expected to have their first outing in Parliament on Wednesday. The Welfare Reform Bill will be introduced in the House of Commons, and its text will be published so MPs can begin scrutiny of the proposals. The major reforms are set to include the tightening of criteria for the main disability benefit in England, personal independence payment (Pip). I'll vote against these awful welfare reforms. A Labour government should lift people out of poverty, not put people into it. If you agree, then please write to your MP and tell them that. — Brian Leishman (@BrianLeishmanMP) June 17, 2025 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, and the Government hopes it can save up to £5 billion a year by doing so. But ministers are likely to face a Commons stand-off with backbench Labour MPs over their plans, with dozens of them last month saying the proposals were 'impossible to support'. The Bill is set to be introduced as the latest benefits data has shown that more than 3.7 million people in England and Wales are claiming Pip, with teenagers and young adults making up a growing proportion. The latest data, published by the Department for Work and Pensions on Tuesday, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit 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. Teenagers and young adults account for a growing proportion of those getting Pip. Some 16.5% of claimants in April this year were aged 16-19, up from 14.6% in April 2019. The 30-44 age group has similarly grown, while the number of 45-59 year-olds has fallen. The figure for 60-74 year-olds has risen slightly over this period, from 29.3% to 30.8%. It was reported in recent days that Work and Pensions Secretary Liz Kendall has agreed to include 'non-negotiable' protections in the Bill, including a guarantee that those who no longer qualify for Pip will still receive the payments for 13 weeks, rather than just four weeks. The concession is seen as a move to avert a rebellion by Labour MPs opposed to the overall reforms, but have been described as 'not very much really' by one such parliamentarian. Downing Street insisted it was 'crucial to say we are committed to the reforms that we've set out'. A No 10 spokesman said: 'You've heard that from the Prime Minister, the Chancellor, the Work and Pensions Secretary, on the principles behind this and the urgent need for this. 'You have the statistics, they show we have the highest level of working age inactivity due to ill health in Western Europe. 'We're the only major economy whose employment rate hasn't recovered since the pandemic.' Pip will remain 'an important non-means-tested benefit for disabled people and people with long-term health conditions, regardless of whether they are in or out of work', he said, but added the Government would build a 'system that is fairer' through its reforms. It is thought the restrictions on Pip would slash benefits for about 800,000 people. Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'.
The Independent
3 days ago
- Business
- The Independent
Pip claimants at record 3.7 million as welfare reforms loom
More than 3.7 million people in England and Wales are claiming the main disability benefit, new figures show, with teenagers and young adults making up a growing proportion. The latest data comes just days after Prime Minister Sir Keir Starmer insisted his welfare reforms must be pushed through, repeating his assertion that the system as it stands is not working. The Government has faced a backlash from its own MPs over the package of measures, which ministers argue will help the disabled and long-term sick back into work. Dozens of Labour MPs last month urged Sir Keir to pause and reassess planned cuts, saying the proposals were 'impossible to support'. The plans, which include tightening eligibility for the personal independence payment (Pip) benefit, are hoped by the Government to save around £5 billion a year. The latest data, published by the Department for Work and Pensions on Tuesday, showed there were a record 3.74 million people in England and Wales claiming Pip as of April this year. The figure is up from 3.69 million in January and a jump of 200,000 from 3.54 million a year earlier. Data for Pip claimants begins in January 2019, when the number stood at 2.05 million. Pip is a benefit 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. Teenagers and young adults account for a growing proportion of those getting Pip. Some 16.5% of claimants in April this year were aged 16-19, up from 14.6% in April 2019. There has been a similar rise for the 30-44 age group, which accounted for 21.0% in April this year, up from 18.9% in April 2019. By contrast, 45-59 year-olds made up 29.9% of claimants in April, down from 37.2% in 2019. The figure for 60-74 year-olds has risen slightly over this period, from 29.3% to 30.8%. It was reported in recent days that Work and Pensions Secretary Liz Kendall has agreed to include 'non-negotiable' protections in the Welfare Reform Bill, including a guarantee that those who no longer qualify for Pip will still receive the payments for 13 weeks, rather than just four weeks, The concession is seen as a move to avert a rebellion by Labour MPs opposed to the overall reforms, but have been described as 'not very much really' by one such parliamentarian. Speaking at the weekend, Sir Keir made clear his intention to push ahead with the reforms. Asked whether there would be further concessions, the PM said: 'Well we have got to get the reforms through and I have been clear about that from start to finish. 'The system is not working, it's not working for those that need support, it's not working for taxpayers. 'Everybody agrees it needs reform, we have got to reform it and that is what we intend to do.' It is thought the restrictions on Pip would slash benefits for about 800,000 people. Ms Kendall previously said there are 1,000 new Pip awards every day – 'the equivalent of adding a city the size of Leicester every single year'. 'This is not sustainable or fair for the people who need support and for taxpayers,' she said.
The Guardian
4 days ago
- The Guardian
Carer's allowance: woman who won case against DWP calls for end to ‘sickening harassment'
The mother of a teenager with cerebral palsy has demanded an end to the 'sickening harassment' of unpaid carers after a significant legal victory against the government. Nicola Green, 42, was pursued by the Department for Work and Pensions (DWP) for more than a year after she was accused of fraudulently claiming nearly £3,000 in carer's allowance. When Green insisted she was innocent, the DWP wrote to her employer without her knowledge to try to recoup the sum from her pay. The part-time college worker, whose 17-year-old son has a number of health conditions, appealed against the fine before a tribunal judge, who quashed it in barely 30 minutes last month. Speaking after her legal victory, Green said she had been treated 'like a criminal' by the DWP over the £2,823.75 sum. 'I can't believe what they're putting people through,' she said. '[I'm] just a law-abiding person, who has never broken the law in my life. I've always tried to do things by the book … It feels like harassment.' The DWP wrote to Green on 27 May to say it was considering appealing against the tribunal ruling and that it would not cancel the debt until then. However, the department wrote to her again on Monday, days after being contacted the Guardian, to say it had cancelled the overpayment and that she would be offered advice about claiming compensation. A DWP spokesperson said: 'Ms Green's overpayment has been cancelled. We are committed to supporting carers across the UK. Tribunals offer customers an opportunity to provide any additional information which may be relevant to their case, and we regularly gather feedback and learn from them.' Green's case is the latest in the Guardian's award-winning investigation into the DWP's pursuit of unpaid carers despite official errors that have plunged tens of thousands of vulnerable people into hardship. The latest figures show that the government is clawing back at least £357m in carer's allowance paid out in error over the last six years, leaving hundreds of people with criminal records and some with debts of more than £20,000. The DWP has faced widespread criticism over its 'cruel and nonsensical' punishment of family carers who unwittingly earned slightly more than the weekly limit to qualify for carer's allowance, which rose to £196 a week in April. The department is alerted whenever a carer oversteps the weekly limit but until recently only checked half of these alerts – and as few as 12% for a long time – meaning tens of thousands of people were unknowingly building up debt for years. The controversial 'cliff-edge' rule means that a carer who earns £1 more than the weekly threshold must repay the whole of that week's carer's allowance, currently £83.30 a week. That means someone who earns £1 a week over the limit for a year must repay not £52 but £4,331.60. A Guardian analysis has found a sharp increase in the number of cases being quashed by judges in recent years as concern over the DWP's actions have grown. In the year to April 2025, tribunal judges struck out 42% of carer's allowance fines, compared with 29% in 2019 and 15% in 2014. In total, the DWP has lost 898 cases at tribunal in the last six years. Green, who works less than 14 hours a week at Bolton college, said she was reduced to tears by the DWP's pursuit. She juggles her term time-only job with caring for her teenage son, whom she did not wish to be named publicly. He has cerebral palsy, is deaf and has short bowel syndrome owing to complications arising from being born extremely premature, meaning he was hospitalised for six months from birth. 'They don't care about you. They don't care about your personal situation. They don't care what you've been through and they don't care how much you're saving the system,' she said. 'It's so unjust and it's the injustice that's driven me to challenge it. It's sickening actually. The tone of the letters – they're insinuating I'm a criminal. And going through the process you do feel like you've defrauded the system, however innocent it has been.' The DWP claimed Green had breached the earnings rules on seven occasions between December 2018 and April 2024. Five of these related to a one-off Christmas holiday bonus from her employer. One was due to unexpectedly receiving sick pay. The final overpayment related to a pay increase awarded to all Bolton college employees. However, tribunal judge Dianne Oliver ruled last month that Green had not in fact breached the rules because her average weekly pay was below the earnings limit. The DWP did not attend the 30-minute hearing in Bolton. The judgment follows a similar legal victory by another unpaid carer, Andrea Tucker, who defeated the government in February. The rulings are significant because the DWP routinely pursues carers on the basis of individual weekly earnings, rather than averaging them over a year. If the government took the latter approach, far fewer carers would end up with huge debts.
The Sun
10-06-2025
- General
- The Sun
20 mistakes that could see your benefits from Universal Credit to PIP STOPPED
A HOST of simple mistakes could see your benefits stopped, from Universal Credit to PIP. If you're on benefits, it's up to you to report any change in circumstances that might affect what you are entitled to. If you do not, your claim might be stopped or reduced. If you have been paid too much, you might have to pay some of the money back as well as a £50 penalty. In a worse case scenario, not reporting a change in circumstances can be classed as benefit fraud which is illegal. The types of changes in circumstances you have to report vary depending on your benefit. However, there is a list on the government's website with the main changes you need to report. The list of 20 is: changing your name or gender finding or finishing a job, or working different hours your income going up or down starting or stopping education, training or an apprenticeship moving house people moving into or out of the place you live (for example your partner, a child or lodger) the death of your partner or someone you live with having a baby starting or stopping caring for someone getting married or divorced starting or ending a civil partnership planning to go abroad for any length of time going into hospital, a care home or sheltered accommodation any changes to your medical condition or disability changing your doctor changes to your pension, savings, investments or property changes to other money you get (for example student loans or grants, sick pay or money you get from a charity) changes to the benefits you or anyone else in your house gets you or your partner getting back-pay (sometimes called "arrears") for salary or earnings you're owed changes to your immigration status, if you're not a British citizen If you claim Child Benefit, you also need to report changes to your child's circumstances. starts getting Universal Credit, Jobseeker's Allowance (JSA) or Employment and Support Allowance (ESA) changes their name by deed poll gets married or forms a civil partnership moves in with their partner goes missing You also need to report if: your child is staying in or leaving education around their 16th birthday, they move away from home, they go into hospital or care, their gender changes or they die. Three key benefits that YOU could be missing out on, and one even gives you a free TV Licence It's worth looking on the government's website for changes you need to report for your benefit. Some benefits require you report specific things that you don't have to report if you're on another benefit. For example, those on Universal Credit need to report if their rent goes up or down. This is because housing costs impact what you receive in the housing element of Universal Credit. Meanwhile, if you're on PIP, you need to report if you need more or less help with daily living and mobility tasks. This is because the amount you receive in the benefit is based on how much you struggle with daily living. How to report a change in circumstances Who you need to report a change in circumstances to depends on what benefit you receive. Here is how to report them for the main benefits: Universal Credit - Report changes using your Universal Credit online account if you have one or contact the Universal Credit helpline on 0800 328 5644. Pension Credit - Call the Pension Service helpline on 0800 731 0469 or report changes by post. The address is on the letters you get about your Pension Credit. Attendance Allowance - Call the Attendance Allowance helpline on 0800 731 0122. Disability benefits - Call the Disability Service Centre to report changes if you get Disability Living Allowance (DLA) or PIP. The number to call is 0800 121 4433. Carer's Allowance - Report a change online or call the Carer's Allowance Unit on 0800 731 0297. Housing Benefit - Tell your local council about changes if you get Housing Benefit. You can find what local council area you fall under via Child Benefit - Report changes using the Child Benefit online service or call on 0300 200 3100. All other benefits - Call Jobcentre Plus to report changes. You need to have your National Insurance number when you call. You can find your nearest Jobcentre Plus via What happens if you don't report a change in circumstances If you've not reported a change in circumstances and have been overpaid, you'll have to pay it back. You should get a letter from DWP Debt Management explaining how to repay and manage any benefit money you owe. You can pay back the overpayment in full or set up regular monthly payments. If you need help managing repayments, you can contact the DWP Debt Management contact centre on 0800 916 0647. If you are found to have been overpaid due to your own negligence or error you may also have to pay a £50 penalty. If you're suspected to have committed benefit fraud, you'll be contacted by the DWP, HMRC, the Defence Business Services or your local authority. If you are found to have committed benefit fraud, one or more of the following may happen: you'll be told to pay back the overpaid money you may be taken to court or asked to pay a penalty (between £350 and £5,000) your benefits may be reduced or stopped More information on this can be found via Are you missing out on benefits? YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to Charity Turn2Us' benefits calculator works out what you could get. Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit. and charity StepChange both have benefits tools powered by Entitledto's data. You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs. Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
