Labour welfare reforms threaten to backfire as benefit claims hit record high
Disability benefits have surged by 200,000 claims ahead of Labour's plan to scale back eligibility rules, official figures show.
Figures published by the Department for Work and Pensions (DWP) show there were 3.74 million people in England and Wales claiming personal independence payment (Pip) as of April this year.
Pip is the main non means-tested benefit for those with disabilities, with payments of up to £9,500 a year to help people with living costs. Around £3bn a year of the support is paid to people with mental health conditions, such as ADHD.
The figures come as Liz Kendall, the work and pensions secretary, is expected to announce cuts to Britain's ballooning benefits bill which continues to hit record levels.
The number of successful Pip claimants has jumped by 2pc since the start of the year, 5.6pc in the past 12 months and 77pc since 2019.
The benefit has spiralled since lockdown, and is on course to climb from £15bn in 2019-20 to £36bn in real terms by the end of the current Parliament.
Official figures show mental health conditions have driven a substantial share of the increase in claims since lockdown, with one in four working age Britons now classed as disabled. Claims for mental health problems is set to cost taxpayers £3.5bn this year.
The bill has alarmed ministers and officials, who are poised to introduce a £5bn welfare cut on Wednesday in the face of mounting criticism from backbench Labour MPs.
It comes after it emerged face-to-face assessments for disability benefit claims have collapsed to a record low under Labour.
Official figures show that more than 80pc of Pip assessments conducted before the pandemic were in person. However, this dropped to a record post-Covid low of less than 2pc in September last year, when just 1,270 of 74,000 assessments were carried out face-to-face.
Ms Kendall said last month: '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.'
The changes to the welfare system include stricter eligibility for claiming Pip, and reducing payments for new claimants of the health element of Universal Credit.
The age group most likely to claim Pips is the 60 to 64 age bracket, with 514,392 successful claimants, according to the DWP.
In a report published earlier this year, the DWP reported that £6.5bn of its total benefits outlay was lost to fraud last year. Government figures show that 2,235 benefit payments were sent abroad.
Elsewhere, new figures show the number of benefit claimants provided with cars from the Motability scheme has rocketed by 97,000 in the past year.
Motability Operations, which previously admitted to finding thousands of cases of abuse of the taxpayer-subsidised scheme, provides cars to disabled people in exchange for a portion of their benefits.
The scheme, which is not run by the Government, has come under intense scrutiny amid concerns about its spiralling cost. It accounted for one in five of all new cars bought in the UK last year, with the customer base now standing at 860,000.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Statesman
25 minutes ago
- New Statesman
A perilous age
We go to print this week at a moment of deep peril, uncertainty and, it has to be said, shame. In the Middle East, Israel and Iran are engaged in an existential battle for supremacy which, at the time of writing, threatens to spiral out of control, causing unknown death and destruction. In Ukraine, Vladimir Putin's assault continues, and in Gaza, the suffering of millions intensifies even as their fate falls down the global agenda. We do not live in a world bending towards justice, but one being bent out of shape by those with power. While all this was happening, the leaders of what was once thought of as 'the West' looked on in Canada, paralysed in the face of the spectacle unfolding. Is there even such a thing as the G7 any more, you wonder? What we have, it seems, is an increasingly incongruous G6 – a gathering of half a dozen mid-sized powers, once loyal to the US, but now seemingly powerless to do much about anything. As the likes of Keir Starmer and Mark Carney put their names to another communiqué, the strongmen of the world did as they pleased. Naturally, much of this week's magazine is devoted to the unfolding crisis and the new world we now seem to have entered. Lawrence Freedman provides a masterly account of the grand strategy – and grand gamble – behind Benjamin Netanyahu's decision to attack Tehran, as well as the possible consequences in the days and weeks ahead. Freddie Hayward, our US correspondent, reports on the fractious world of Maga, where some of Trump's most ardent supporters are now watching with alarm as the one-time candidate of peace finds himself drawn ever closer to another foreign war. Katie Stallard reports from Washington and the strange spectacle of Trump's birthday parade, considering what it reveals about the uncertainty of the world now. In this world of strongmen, the personalities of those in power is crucial: what they believe and why. For this reason, we have delved into the personal history of Netanyahu, a pariah figure in much of the world today (justly) who, nevertheless, looks set to remake the Middle East to Israel's advantage through raw military power and violence. Ami Dror, who was the head of Netanyahu's secret service security detail between 1996 and 1999, provides a startling insider account of the prime minister who became a warlord. And Israeli-American journalist Joshua Leifer explains why Netanyahu has been waiting for this showdown with Iran for most of his adult life. At home, meanwhile, the government continues to flail, subcontracting its most difficult decisions to others. The Home Secretary, Yvette Cooper, recently completed the government's latest U-turn by announcing that there would be a national inquiry into the euphemistically named 'grooming gangs' scandal. As Hannah Barnes writes, it beggars belief that after months of obfuscation, the government has finally been forced into this position by the findings of Louise Casey. I have sat in meetings with some of the most senior Labour officials in this government who have spoken passionately about the moral stain of what happened in Rotherham and elsewhere, raging against the Labour councils which failed to act. And yet still nothing happened until someone else outside the government ordered them to change course. Voters – and, I suspect, New Statesman readers – want a government that knows what it stands for and is prepared to set it out in clear, unambiguous terms. From the protection of young girls in Britain to the rights of Palestinians in Gaza, Britain expects a government that leads, not one that follows. It's not all doom and gloom though. In the New Society, Tina Brown takes a look at Princess Diana's contested legacy, Zoë Huxford explores modern Britain through Alexander McQueen's most famous shows, and Kate Mossman meets a growling Brian Cox. Not a big fan of the prime minister, it seems. Enjoy the issue, and please do get in touch to let us know what you think. Subscribe to The New Statesman today from only £8.99 per month Subscribe [See also: Kemi Badenoch sinks further into the mire] Related
The Guardian
34 minutes ago
- The Guardian
UK benefits system could collapse if payments are not cut, Liz Kendall says
Britain's benefits system faces collapse without cuts to disability payments, Liz Kendall has said, as the government published plans that put it on a collision course with dozens of angry Labour MPs. Kendall published her welfare reform bill on Wednesday, confirming it would lead to benefit cuts for 950,000 people by 2030. She said the country's £326bn social security net might cease to exist if costs continued to escalate. The bill includes several concessions designed to win over fractious Labour MPs as ministers look to ward off the biggest rebellion of Keir Starmer's premiership. But the efforts were met with hostility by many in the party, who said they still intended to vote against the bill next month. Kendall said: 'Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity. 'This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth.' The bill will cut personal independence payments (Pips) for more than 800,000 people with disabilities, as well as carers' support for 150,000 people who care for them. Claimants only able to wash half of their body or who are unable to cook a meal for themselves will no longer be able to claim Pips unless they have another limiting condition. The cuts are at the heart of an overall package of nearly £5bn in welfare savings which ministers argue are necessary to protect the financial sustainability of the benefits system. Kendall has tried to dispel widespread anger in the Labour party over the plans by introducing new concessions. Under the terms of the bill, people losing their disability benefits will get additional financial support for 13 weeks, while those with severe conditions such as heart disease or spinal injuries will not have to face reassessments. The work and pensions secretary has set out a separate £1bn plan to help unemployed people get back to work, but this is not related to Pips, which are unconnected to employment status. Whips are also issuing threats, and the deputy prime minister, Angela Rayner, refused on Wednesday to rule out the possibility of suspending any Labour rebels when the bill is put to a vote next month. The mixture of concessions and threats did not appear to have won over wavering Labour MPs, however, and many went public with their criticism after the bill was published. Rachael Maskell, the MP for York Central, said: 'Having read the bill, it is clear that disabled people will lose significant support. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion 'The explanatory notes set out that 800,000 will not receive the daily living component of Pip by 2029/2030 and 150,000 will also lose their carers allowance. Poverty will be the legacy of this bill.' Andy McDonald, the MP for Middlesbrough and Thornaby East, said the bill was 'a huge attack on the incomes of disabled people'. 'MPs are being expected to vote these through whilst the green paper consultation continues, before the Pip assessment review is conducted, and without any evidence the separate employment support package – which is not in this bill – will work. 'This bill will be a yes or no on impoverishing disabled people. It's a no from me.' Those feelings were echoed by disability campaign groups and charities. James Taylor, the director of strategy at the disability equality charity Scope said: 'This bill will be catastrophic for disabled people. Cutting benefits will plunge hundreds of thousands into poverty. Over 800,000 will lose at least some financial support from Pip. 'It will have a devastating effect on disabled people's health, ability to live independently or work.'
BBC News
39 minutes ago
- BBC News
Future of Notting Hill Carnival 'in jeopardy'
The future of the Notting Hill Carnival could be in doubt without "urgent funding" from the government, its organisers said in a letter leaked to the chair Ian Comfort has written to Culture Secretary Lisa Nandy to request the funding, which he said was "essential to safeguarding the future and public safety of this iconic event".It follows a review of the festival, which attracts about two million people over the August Bank Holiday weekend, that identified "critical public safety concerns" that needed additional funding to address, the letter Met Police's Assistant Commissioner Matt Twist previously raised concerns of a "mass casualty event" due to crowd density. Funding 'essential' The Department for Culture, Media and Sport has been contacted for a independent safety review was commissioned by the carnival's organisers and paid for at a cost of £100,000 by the Greater London Authority (GLA), Kensington and Chelsea Council and Westminster the leaked letter, Mr Comfort said: "The April 2025 London Assembly report highlights the increasing strain placed on the Metropolitan Police during large-scale public events. "Limited resourcing has restricted the police service's ability to respond to growing operational pressures."The carnival chair said that increased investment in stewarding and crowd management was "now essential to allow the police to focus on their primary role of crime prevention and public protection".Mr Comfort added that a failure to secure "immediate" additional funding "risks compromising public safety and jeopardising the future of the carnival".He did not put a number on the level of funding safety review's full findings and recommendations have not been made public. Mr Comfort said that while the GLA and the two councils had provided "substantial support" for stewarding during past festivals, they could no longer "meet the growing operational requirements identified in the review".The government has supported Carnival through bodies such as Arts Council it is understood that if the organisers' request is granted, it would mark the first time direct government funding has been provided. Mr Comfort added: "A co-ordinated, well-resourced safety approach is essential to protect attendees and meet the operational demands of this major national event." As part of its policing operation for the 2024 carnival, the Met had about 7,000 officers on duty, drawn from local policing teams as well as specialist units, with a total of around 14,000 officer shifts across the whole evidence to the London Assembly Police and Crime Committee in September, Mr Twist said: "While we acknowledge that crime often gets the headlines, the thing that worries me most is the crowd density and the potential for a mass casualty event."The committee's report - separate to the safety review commissioned by Carnival organisers - found that while the force was being put under increasing strain by Carnival, "this has not been matched with an increase in funding from the government".Speaking in April at the report's publication, committee chair Susan Hall said: "It is absolutely essential that the Met is on hand to carry out its duties, and not fill in for a lack of stewarding from the organisers."
