MPs have debated major welfare reforms announced by Work and Pensions Secretary Liz Kendall, a package of changes designed to save over £5 billion annually by 2029-30.
Kendall outlined the Labour government’s approach, emphasising the importance of an “active state” in transforming lives. She announced an additional £1 billion per year for employment support, with a focus on providing personalised assistance to sick and disabled individuals who are able to work.
Key Changes to the Welfare System
- Personal Independence Payments (PIP): Eligibility criteria for the primary disability benefit will be narrowed.
- Universal Credit: The current work capability assessment will be scrapped in 2028, with eligibility instead determined through PIP.
- Merging Benefits: The government will consult on merging Jobseeker’s Allowance and Employment Support Allowance.
- “Right to Try” Scheme: Individuals will be encouraged to attempt returning to work without fear of losing their benefits.
The proposed changes have sparked debate across the political spectrum. The Conservatives have criticised the reforms as “too little, too late”, while the Liberal Democrats argue that deeper cultural change is needed at the Department for Work and Pensions.
Beyond Westminster, disability rights charity Scope has strongly condemned the plans, arguing that they will “penalise some of the poorest people in society.” James Taylor, Scope’s executive director of strategy, warned that cutting £5bn from the system would be “a catastrophe for disabled people’s living standards and independence”.
Labour MP Debbie Abraham, chair of the Work and Pensions Committee, acknowledged that the social security system is “not fit for purpose”, but raised concerns over the scale of the cuts. She described the £5bn reduction as the largest cut in social security support since 2015 and called for a more compassionate approach to balancing public finances. She also urged the government to publish an impact assessment on mental health.
While Kendall insists that these reforms will save £5bn annually from 2029-30, the exact financial implications remain unclear. The Office for Budget Responsibility (OBR) previously forecast that benefits for working-age adults would rise from £48.5bn in 2023-24 to £75.7bn by 2029-30 – meaning the savings would account for less than one-fifth of the predicted increase.
Kendall stated that full costings would be provided in the Spring Statement next week, along with an equality and poverty analysis.
