Chancellor urged not to make PIP cuts that could plunge 700,000 households into poverty

Independent

11-03-2025

More than a dozen charities have warned Chancellor Rachel Reeves against cutting disability benefits as part of welfare reform, saying it would have a "catastrophic impact".
In an open letter, organisations including Disability Rights UK, Citizens Advice, Scope, and Sense urged Reeves to "safeguard" the benefits in her upcoming spring statement.
They argued that any cuts would push hundreds of thousands of disabled households into poverty, rather than achieving the government's goal of increased employment.
The charities said that cutting disability benefits would not incentivise work, and instead advocated for improved support systems to help disabled people find suitable employment.
Reeves is set to deliver her spring statement on March 26. It is expected to include news that spending will be cut to offset rising borrowing costs and sluggish economic growth.
Welfare reform is expected to be a target area for potential savings.
Work and Pensions Secretary Liz Kendall has highlighted the significant number of people out of work due to ill health – 2.8 million – and the fact that one in eight young people are not in education, training, or employment.
The financial burden of sickness and disability benefits for working-age individuals has increased by £20 billion since the pandemic, with projections estimating it will reach £70 billion over the next five years.
Ms Kendall has said an upcoming Health and Disability Green Paper will set out plans to support those who can work back into jobs, rather than write them off.
But in their letter to the Chancellor, the charities – also including the MS Society, mental health charity Mind, food bank organisation Trussell and Parkinson's UK – urged Ms Reeves to 'think again about cuts to disability benefits'.
They said: 'We agree with the Government's ambition to support more disabled people into work. However, making cuts to disability benefits will not achieve this goal or fix the system.
'In fact, there is little evidence to suggest cutting benefits increases employment outcomes. We know the benefits system is broken and needs reform.
'That there are disabled people out of work who want to work given the right support. And for some disabled people, work isn't appropriate. Changes to welfare must start here. Not with cuts.'
They said an analysis of official figures by Scope suggested a further 700,000 disabled households 'could be pushed into poverty' without Personal Independence Payments (PIP).
They said this 'can be a lifeline for disabled households' and can enable people to work.
The charities said the Government 'has an opportunity to work with disabled people and the sector to bring about meaningful change' and warned that their voices must be heard, adding: 'Disabled people should not be an afterthought.'
A Government spokesperson said: 'We have been clear that the current welfare system is broken and needs reform, to support long-term sick and disabled people into work so they can live more independent lives, and puts the benefits bill on more sustainable footing for the taxpayer.
'Without reform, more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it's bad for people, too.
'We have a duty to get the welfare bill on a more sustainable path and we will achieve that through meaningful, principled reforms rather than arbitrary cuts to spending. That's why as part of our Plan for Change, we will bring forward our proposals for reform shortly that will unlock work and help us reach our ambition of an 80 per cent employment rate.'