DWP benefit cuts expected within weeks, including PIP and Universal Credit

British bank notes and coins being held in a person's hands.
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The Department for Work and Pensions (DWP) is expected to confirm cuts to certain benefits in the coming weeks with major Government spending reforms set to go ahead.

Chancellor Rachel Reeves is reportedly looking to make further cuts to sickness and disability benefits, while the DWP will be releasing a paper outlining its planned reforms to the welfare system in the spring. It comes as a committee published its findings this week following an inquiry into increasing numbers of social security claims related to ill health.

The House of Lords Economic Affairs Committee has issued a series of recommendations to help people get back into work, including assigning caseworkers to each sickness claimant in the same way that unemployed people must have regular meetings with a work coach. The committee said that it expects a response to its report from the Government by March 20, setting out a two-month timeline for any changes to the benefits system to be announced, Coventry Live reports.

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The committee said in its paper: "Overall, we welcome the Government's intention to 'take a whole new approach with fresh thinking' to welfare: reform is needed both to curb the increasing fiscal burden and to address the ever-growing social cost of hundreds of thousands of people dependent on benefits. We see no reason to delay action.

"A wealth of analysis already exists on the issues we have raised and which offers credible solutions to the problems we have highlighted. We urge the Government to accelerate its plans to reform health-related benefits. If the Government does not set out how it intends to address these weaknesses, this growing area of welfare spending will remain a challenge for the forthcoming Spending Review."

DWP has also confirmed that a consultation will be launched in Spring 2025 on planned reforms to sickness and disability benefits. Under the previous Conservative Government, the department had pledged to perform the work capability assessment and restrict access to the health elements of Universal Credit.

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On Thursday, January 16, a consultation into plans carried out by the DWP in autumn 2023 was ruled unlawful by a High Court judge, who found that it had been "misleading", "rushed" and "unfair". The judge found that the consultation failed to mention 424,000 disabled people would see their benefits cut, with many losing out on £416 a month under the plans - but there are now fears that Labour will push ahead with similar cost-cutting measures following a fresh consultation.

Rachel Reeves said in her autumn statement that Labour had "inherited the last Government's plans to reform the work capability assessment" and "will deliver those savings as part of our fundamental reforms to the health and disability benefits system".

The Chancellor confirmed on Tuesday that she expects to reveal multi-year spending plans for government departments in June following the conclusion of the Spending Review on June 11. Reeves has previously said the review will require Government departments to find efficiency savings amounting to 5% of spending, with the Treasury acknowledging this will mean "difficult" decisions.

However, leading charities have reiterated their position that cuts to disability benefits would be "devastating" for vulnerable people, as reported by the Big Issue. National disability charity Sense said its research has found that current benefits "barely cover the essentials" for some claimants, with 43% of people with complex disabilities in debt and struggling to afford basic living costs such as food and heating.

A Government spokesperson said: "We are determined to get Britain working again and have set out our first steps towards delivering an 80 per cent employment rate – by joining up local work, health and skills plans. We have been clear that the current welfare system needs reform, so it is fairer on the taxpayer and people get the support they need to move into work.

"Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the Spring. This will be part of a proper plan to help disabled people who can work secure employment while ensuring support is provided for those who need it."