Latest news with #MoneyAndMentalHealthPolicyInstitute
Reuters
6 days ago
- Health
- Reuters
Quarter of UK mental ill health benefit claimants expect to lose out from planned reforms, charity says
LONDON, June 5 (Reuters) - Around one in four British people with poor mental health who claim welfare benefits expect to lose their entitlement under proposed government reforms, according to research published by a charity on Thursday. Britain's government aims to save 4 billion pounds ($5.4 billion) a year by 2029-30 through tightening the rules for claiming a benefit known as personal independence payment (PIP) designed to cover disability-related costs, whether a claimant is in work or not. The Money and Mental Health Policy Institute said it interviewed 227 people with mental health conditions who receive PIP, which can be worth nearly 6,000 pounds a year. Some 24% of those surveyed said they expected to lose the benefit, while 39% were unsure if they would be affected. About one in five of those surveyed were in work, and nearly two thirds of them said reducing the benefit would make them work less, rather than more, due to difficulty affording transport costs or private mental health support. "Our analysis shows that these changes would actually result in many people with mental health problems who have a job cutting their hours or leaving the workplace altogether," the charity's chief executive, Helen Undy, said. PIP is paid to 3.7 million people in England and Wales, 6% of the population, and new claims have risen by two thirds in recent years. The government hopes that tighter eligibility rules will encourage more claimants to seek work. Under the government plans, claimants would need to have a severe difficulty in at least one area of daily life to qualify for the benefit, rather than a range of less severe problems. Britain's budget watchdog in March estimated that a third of claimants would be affected by the change, of whom around half would lose benefits after being reassessed. The new plans are subject to consultation until the end of the month. Finance minister Rachel Reeves has been under pressure from campaigners to reconsider, following a U-turn over a decision to scrap heating subsidies for most pensioners. ($1 = 0.7372 pounds)
The Independent
6 days ago
- Health
- The Independent
Martin Lewis's charity warns Starmer's PIP disability cuts will be ‘catastrophic'
Martin Lewis ' charity has warned that Labour 's changes to the Personal Independence Payment (PIP), a key benefit for individuals with long-term health conditions or disabilities, will have a 'catastrophic impact'. Under reforms to the country's welfare system, Sir Keir Starmer 's government plans to update the eligibility criteria for PIP and universal credit to save around £5bn a year by 2030, and get more people into work. But critics say the changes will have a devastating impact on some of those who will lose the benefits. Currently, approximately 3.7 million people across England, Wales, and Northern Ireland receive PIP, a benefit designed to assist those facing challenges due to long-term physical or mental health issues. It is estimated that 800,000 will lose their allowance under changes to the assessments. Martin Lewis, founder of has previously raised concerns over the impact of the changes on people who have no other income. On Thursday, Money and Mental Health Policy Institute, a charity founded and chaired by Mr Lewis, warned the reform to PIP would have a 'catastrophic impact' on people's finances and mental health, and will drive people out of the workplace Research by the body showed a quarter of 227 people with a mental health condition who receive PIP expected to lose the allowance. The loss of the money would impact their ability to pay for counselling and therapy, the study found. More than eight in 10 of those interviewed also said losing PIP would mean they would have to significantly cut back on grocery spending, while three-quarters said they used the money to pay for essential household bills. Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: 'The message to the government from this research is clear – its proposed changes to PIP will have a catastrophic impact on people with mental health problems' wellbeing, finances, and working lives. 'Getting PIP can be the difference between being able to afford the treatment, support and everyday essentials you need, or facing worsening mental health and financial hardship. Some of the people we've spoken to say they will struggle to survive day-to-day if they lose this payment and that even the prospect of it has contributed to them having suicidal thoughts. 'The government says its welfare reforms will help more people move into work. But you don't do that by depriving people of a critical financial lifeline that helps them stay well. Our analysis shows that these changes would actually result in many people with mental health problems who have a job cutting their hours or leaving the workplace altogether. 'We urge the government to ditch these plans. Balancing the books should not come at the price of causing misery and hardship for some of the most vulnerable people in society.'
