Benefits cuts – live: Million to lose PIP as Starmer defends reforms ‘plunging families into crisis'

Independent

19-03-2025

Around one million people will lose their right to personal independence payments (PIP), a think tank has warned, after the government unveiled dramatic cuts to benefits.
The tightening of eligibility for PIP, a benefit aimed at helping those with disability or long-term illness with increased living costs, was one of the most significant moves announced by work and pensions secretary Liz Kendall on Tuesday.
Chief executive of the Resolution Foundation, Ruth Curtice said her think tank estimates around a million people who are losing their entitlement to PIP completely.'
Proposed changes cover who qualifies for benefits, how much they are paid, and how long individuals can receive them, she said.
The backlash towards the reforms has been swift. Action for Children warned the changes risks driving more children into poverty. Paul Carberry, CEO of the charity, said it 'risks plunging more families and children into crisis.'
With an expected bill of £70bn per year by 2030 on disability and long term sickness benefits, Ms Kendall insisted she had no choice. Sir Keir Starmer has defended the overhaul, adding the rising sickness and disability benefits bill is 'devastating' for the public finances and has 'wreaked a terrible human cost'.
Minister says Labour has safeguarded vulnerable people amid welfare cuts
A minister has said he is satisfied that Labour has done enough to safeguard people who are poor and vulnerable amid the welfare cuts.
Minister for social security and disability, Sir Stephen Timms, told BBC Radio 4's Today programme: 'We'll deal with the big discouragement to work that's been created by changes in the benefits system over the last 15 years with quite a big financial prize for being declared incapable of ever working.
'We're going to fix that and instead support people on a pathway back into work, and we're going to look at personal independence payments (Pip) and make sure that that's financially sustainable for the long-term.'
Put to him that some Labour MPs were 'horrified' by the changes to Pips, he said: 'There are people arguing that we should have made further cuts, other people concerned about the changes that we have made.'
Asked if it is correct that some people could lose more than half of their universal credit payments as well as their disabilities benefit, he said: 'It depends on the circumstances – I mean, it is true at the moment that there is a universal credit health premium, which is worth more than the standard allowance of universal credit.
'We're dealing with that in these changes for the first time since it was created, we're going to be increasing the standard allowance in universal credit beyond the rate of inflation – that will be a very important step in increasing the income of people on universal credit.'
Jabed Ahmed19 March 2025 10:17
Employers must do the 'heavy lifting' after welfare cuts, Labour MP warns
Employers have 'got a lot of heavy lifting to do' after the welfare cuts, a Labour MP has said.
Rachael Maskell told BBC Radio 4's Today programme: 'It's got to be a partnership between the disabled person, the state and employers, so employers have got a lot of heavy lifting to do in this.
'However, it can't be at the expense of disabled people, pushing them into work when they just simply will not be able to sustain that work, or indeed could end up in a capability procedure, or bullied out of work.
'So we've got to make this work for disabled people, and we've got no detail as to the employer's responsibility within this, we're just hearing about the money.'
Jabed Ahmed19 March 2025 09:57
Full report | Minister accuses Labour left of 'defending Tory system' after benefits cuts
Pensions minister Torsten Bell has hit back at left-wing critics of government benefit cuts, accusing them of 'defending a Tory benefit system'.
Speaking to BBC Newsnight, Mr Bell, former chief executive of the left-leaning Resolution Foundation think tank, said the welfare cuts involved 'tough choices' but were about 'keeping a system that does help those with the most significant needs'.
Read the full report from our political correspondent Archie Mitchell:
Minister accuses Labour left of 'defending Tory system' after benefits cuts
Hitting back at left-wing Labour critics of the government, Torsten Bell accused them of 'defending a Tory system'
Jabed Ahmed19 March 2025 09:42
The government 'rushed' welfare reforms, shadow chancellor says
The shadow chancellor has claimed the government 'rushed' into welfare reforms after Rachel Reeves 'killed the economy'.
Speaking to Sky News, Mel Stride said: "We're going to have to look more closely at the details on that. Although let's be clear, this has been rushed.
"There was no mention even in the Labour Party manifesto, for example, about changes to the payment benefit.
"Labour has voted shy on welfare because it's deeply divisive within their own ranks."
Mr Stride also claimed the reason why Labour 'rushed' the reforms was because chancellor Ms Reeves "killed the economy standard with a budget last October".
'Now [Ms Reeves] needs to find some money for our emergency budget next Wednesday,' he added.
Chancellor Rachel Reeves will deliver the government's spring statement on 26 March.
Jabed Ahmed19 March 2025 09:08
Action for Children warns that government welfare reform risks driving more children into poverty
Action for Children's CEO, Paul Carberry said: 'Whilst we welcome the investment in personalised employment support and the 'right to try' guarantee, today's plans to cut the welfare bill fly directly in the face of the government's ambition to reduce child poverty.
'Instead of turning the tide on rising poverty levels, it risks plunging more families and children into crisis.
'Action for Children's Sick and tired report revealed the stark financial, practical and emotional hardships faced by families relying on incapacity benefits to survive, whilst balancing ill-health, caring responsibilities or disabilities.
'Our new analysis shows there are around 900,000 children in families receiving incapacity benefits under Universal Credit 2, and we know that half of these parents also receive PIP.
'This is vital extra income that parents rely on to meet the cost of food, clothing and other essentials for their children.'
Jabed Ahmed19 March 2025 09:03
Recap | What benefit cuts did the government announce yesterday
The government announced a raft of welfare measures it said will help bring more working age people back into jobs, and which will save the taxpayer billions of pounds.
Among the most significant moves is the tightening of eligibility for personal independence payments (Pip), a benefit aimed at helping those with disability or long-term illness with increased living costs.
Around one million people will be affected by the changes to Pip eligibility, the Resolution think tank has said.
Elsewhere, ministers will scrap the work capability assessment for universal credit, the test of whether someone can get incapacity benefit payments based on their fitness for work.
This will be replaced by 2028 with a single assessment considering the impact a person's disability has on daily living, rather than their fitness to work.
Some of the other reforms:
An above-inflation rise in the standard allowance for universal credit by 2029/30 – adding £775 in cash terms annually.
But new claims from April 2026 will see the rate of the health element almost cut in half, from £97 a week to £50, and those already claiming to have their amount frozen at £97 per week until 2029/2030.
Legislating for a so-called 'right to try', which Work and Pensions Secretary Liz Kendall said would ensure people are able to 'take the plunge and try work – without the fear this will put their benefits at risk'.
As part of its reforms, the Government also said it will invest an additional £1 billion a year by 2029/2030 to help support people into work, including through one-to-one help.
Jabed Ahmed19 March 2025 08:40
People with anxiety can still claim PIP if impact is severe, minister says
People with conditions like anxiety will still be able to claim personal independence payments (Pip) if the effect on their wellbeing is deemed severe enough, a minister has said.
Social security minister Sir Stephen Timms was asked whether the £5 billion cuts to benefits announced would mean people with anxiety will not be able to claim it.
'No, it depends what the effect of the condition is on people's wellbeing, and the indicators are all published and set out,' he told Times Radio.
'So if you have difficulties doing certain things, then you get points on the Pip assessment. And the number of points you get determines how much Pip you get.'
He conceded that the cost of Pip will still rise, but 'nothing like as fast as if we didn't act' and said the changes will make the cost 'sustainable in the long-term'.
He said an impact assessment for the proposals cannot yet be published as it contains 'market sensitive data'. It is due to be published alongside the Chancellor's spring statement next week.
Jabed Ahmed19 March 2025 08:29
Government considers extending disability benefit for bereaved parents
The government is considering extending disability living allowance to parents after the death of a child they have given up work to care for, a minister has said.
'One thing we are looking at is, and we're taking legal advice about this at the moment, the possibility of extending Disability Living Allowance for children, the benefit that's paid when children are very unwell, for a period after the child's death,' social security minister Sir Stephen Timms told Sky News.
'Just to support parents during what otherwise (is) obviously a terribly, terribly difficult time, but also a financially difficult time for them. That's a possibility that we are looking at at the moment.'
Jabed Ahmed19 March 2025 08:27
Minister 'pleased' with Labour MPs response to cuts
Social security minister Sir Stephen Timms has said he was 'pleased' with the response from Labour colleagues in Parliament to the proposed benefits cuts yesterday.
He was asked about concerns Labour colleagues have voiced that the changes are not in keeping with party principles.
He told LBC: 'I was pleased with the general response from Labour MPs and others in the House of Commons yesterday.
'I think most people recognise we do need to reform the system.'
Jabed Ahmed19 March 2025 08:26
Further burden on businesses after £5bn cuts, industry leaders warn
'Now is not the time to ask businesses to shoulder any more of a burden', the Confederation of British Industry (CBI) has warned after £5 billion in welfare cuts were announced.
Rain Newton-Smith, chief executive of the CBI, told BBC Radio 4's Today programme: 'We will hold the Chancellor to account on what she has said, and what she has told us, that she will not increase that burden on business any further.
'If we want to see growth in our economy, if we want to help those two million young people back into work, we need to not make it more costly or risky to hire people.'
She added: 'We know the Government are listening on many areas that we have said are hugely important, and there is no more important time, I think, for our economy than when we look to the spring statement next week.'
Jabed Ahmed