Latest news with #PIPs
The Guardian
20 hours ago
- Business
- The Guardian
Reeves rules out disability benefit cuts U-turn but says rules may be tweaked
Rachel Reeves has ruled out a U-turn on disability benefit cuts but said she was 'taking into account' representations from Labour MPs, and could tweak the rules to qualify for the benefits. The chancellor argued that 'the welfare system is not working today' and the changes the government was making were needed because 1,000 people a day were newly claiming disability benefits. Reeves said the spending plans she set out on Wednesday were all fully costed, but refused to rule out further tax rises in the budget this autumn in an 'uncertain world'. Pressed on whether she would change her mind on disability benefit cuts, she said: 'No, we're not going to be changing that. It is important that we reform the way the welfare state works, so that there is a welfare state there for people.' 'We are the only developed country where the number of people in the labour market is lower than it was before Covid, the number of economically inactive people of working age is rising.' But the chancellor indicated that ministers could review the changes they were planning to make to the rules for qualifying for personal independence payments (Pips). Reeves told the BBC Radio 4 Today programme: 'We are reviewing the criteria to get Pips and of course we'll take into account those representations. We've already announced that we are reviewing the criteria for accessing personal independence payments. 'Even with these changes we will substantially be increasing the amount of money we are paying in sickness and disability benefits during the course of this parliament.' In March, Labour announced plans to save £5bn a year by overhauling the welfare system, including by cutting personal independence payments for disabled people. The proposals triggered alarm among Labour MPs, and ministers have been considering tweaks before a vote expected later this month. Under the government's planned changes, claimants would not qualify for Pips unless they scored a minimum of four points on a single daily living activity. Assessments score the difficulty from 0 to 12 that claimants face in a range of living activities such as preparing and eating food, communicating, washing and getting dressed. Reeves also indicated that the government was open to lifting the two-child benefit cap, saying that it was among 'a range of ways in which we can lift children out of poverty'. 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 Speaking the morning after the spending review, Reeves denied the characterisation that she was a 'Klarna chancellor' who was setting out plans to 'buy now, pay later'. 'I don't accept that at all. The idea that yesterday I racked up a bill that I'm going to need to pay for in the future, that's just not right. Last year, I had to increase taxes. I have now allocated that money in the spending review on health, security and economic growth, but everything yesterday was fully costed and fully funded from the budget last year.' Reeves said none of the plans she outlined on Wednesday would require tax rises. However, she repeatedly refused to rule out tax rises in the autumn budget and insisted that 'the world is very uncertain at the moment'. 'I think it would be very risky for a chancellor to try and write future budgets in a world as uncertain as ours,' she told LBC. But she added: 'I won't have to repeat a budget like the one that I did last year.' Pressed on whether the government's spending plans assumed that councils would raise council tax by 5%, Reeves said this was a cap set by the Conservatives and that councils could choose to raise tax by less.
Spectator
19-05-2025
- Business
- Spectator
Under Labour, Britain is living beyond its means
The bleak future of the UK's public finances can be summed up in a few statistics. For the financial year just ended, the Office for National Statistics' provisional estimate for the government's deficit – the gap between income and expenditure – is £151.9 billion. The Office for Budgetary Responsibility's estimate is that spending on welfare (including the state pension) will rise from £313 billion in 2024/25 to £377 billion in 2029/30 in today's money – an increase of £64 billion. The government, meanwhile, has proposed changes to the welfare system, reducing Personal Independence Payments (PIPs) which it hopes will save £4.8 billion a year. These changes have been opposed by 42 Labour MPs who have written to the chief whip to object, although it is reported that a further 100 of them – more than enough to wipe out the government's majority – have also expressed their intention to rebel.
Daily Mirror
09-05-2025
- Business
- Daily Mirror
DWP PIP points: Three conditions 'most likely' to keep their payments
The Resolution Foundation has warned that changes to the Personal Independence Payment (PIP) will affect the living standards of hundreds of thousands of disabled people A group has detailed which Personal Independence Payments (PIPs) recipients are most likely to keep their benefits in light of a significant change proposed by the government. This week, Work and Pensions Secretary Liz Kendall unveiled a major shake-up to the PIP system that could potentially slash the budget by £5 billion. However, MPs and charities have raised concerns that many disabled individuals who depend on these funds for daily life could unfairly lose vital support. The Green Paper is viewed as the Government's sincere attempt to tackle two main issues: the soaring cost of disability benefits and the high number of people unable to work due to ill health. The cuts announced earlier this year are expected to save over £5 billion annually by 2030. However, experts predict that around a million people in England and Wales will lose their disability benefits as part of this overhaul. Welfare reductions aiming to save roughly £5 billion in 2029/30 were revealed earlier this year. The Resolution Foundation, an independent British think tank founded in 2005, strives to improve the living standards of low- to middle-income families. Personal Independence Payment (PIP) is a benefit designed for individuals below State Pension age who need help with daily activities or mobility due to long-term illness or disability, reports Yorkshire Live. The Resolution Foundation has issued a stark warning that changes to the Personal Independence Payment (PIP) will hit the living standards of hundreds of thousands of disabled people. The foundation pointed out that if this single change saves £5 billion, 'then it means between 800,000 and 1.2 million people losing support of either £4,200 (if receiving the standard rate Daily Living element) or £6,300 (if on the enhanced rate Daily Living element) a year by 2029-30'. Those most likely to bear the brunt of these changes are: "Those losing out will be the people who would currently qualify for the Daily Living element of PIP, but score under four points in each of the 10 headings. For example, this will include people who have lower-level needs across a range of activities (like needing aids or appliances to cook, take nutrition, wash and bathe, and dress and undress) but who are not deemed to be completely unable to complete any of these activities. Meanwhile, people who experience large difficulties across one or more of the PIP activities will be unaffected." The Foundation has highlighted the groups least likely to be hit by the new benefit rules, noting: "The DWP has not released any evidence on the impact of these changes, but what we can say (based on previously-released data) is that people with conditions including learning difficulties, cerebral palsy and autism are least likely to be affected, since people receiving PIP and with these conditions are most likely to score 21 points or more in the Daily Living part of the PIP assessment, meaning they are very unlikely to have passed the assessment without scoring four or more points in one of the headings." A recent study points out that cutting financial aid for those with severe conditions will disproportionately damage poorer areas, with areas represented by Labour MPs facing the mightiest economic blow. An in-depth analysis looking at individual constituencies forecasts the effects of the Government's move to toughen the personal independence payment (Pip) qualification terms, exposing the risk of multi-million-pound collective losses for businesses in certain regions. Local expenditure drops due to fewer eligible Pip claimants under the impending alterations also reveal that the poorest communities could lose almost triple the amount compared to the richest ones, according to the research. Fresh statistics have revealed a staggering 3.7 million individuals are beneficiaries of Personal Independence Payment (PIP) across England and Wales, with the sum granted hinging on the claimants' scores reflecting their challenges in daily tasks. In a bid to trim down the welfare expenditure and nudge more individuals into the workforce, PIP assessment protocols are being reformed. A policy document dubbed the "pathways to work" Green Paper, released this March, features a proposal that lays out the necessity for claimants to rack up at least four points in one or more categories to be eligible for PIP's "daily living" section. Furthermore, the cut-off age when adolescents shift from receiving the disability living allowance designated for children is on the cards to ascend from 16 to 18 years.
Time of India
24-04-2025
- Business
- Time of India
Microsoft HR head gives employees 5 days ‘deadline' to …. or leave the company
Microsoft has implemented a new performance management strategy that gives underperforming employees the option to accept a payout and leave the company instead of entering a performance improvement plan (PIP), according to internal documents. The company is now offering 16 weeks of pay to employees identified as low performers who choose to voluntarily leave, Business Insider reported. This approach mirrors Amazon's controversial "Pivot" program, which has faced criticism for allegedly being designed to meet firing quotas rather than genuinely help employees improve. Microsoft's one way to address low performance is by letting them go According to an internal email sent to managers on April 22 by Microsoft's new Chief People Officer Amy Coleman , the company is rolling out "new and enhanced tools to help accelerate high performance and swiftly address low performance." Employees placed on PIPs now face a stark choice: accept the improvement plan with its rigorous performance targets or take the severance package and exit the company. The separation program is being dubbed as " Global Voluntary Separation Agreement (GVSA)" at the company . Those who opt for the PIP will no longer be eligible for the payout, and they have just five days to make their decision. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Google Brain Co-Founder Andrew Ng, Recommends: Read These 5 Books And Turn Your Life Around Blinkist: Andrew Ng's Reading List Undo The asterisk for underperforming employees The new policy also includes a two-year rehire ban for employees who leave after receiving low performance scores or during a PIP. Additionally, underperforming employees will be barred from transferring to other positions within Microsoft. Earlier this year, Microsoft laid off approximately 2,000 underperforming employees without severance, following months of performance evaluations across all levels of the company. Coleman's email emphasized that these changes aim to "create a globally consistent and transparent experience" while fostering "a culture of accountability and growth." The performance improvement process will be available year-round, allowing managers to "act quickly to transparently address performance issues, while offering employees choice."
Yahoo
02-04-2025
- Business
- Yahoo
Labour MSs criticise benefits plan in Senedd debate
Several backbench Labour MSs have criticised plans for cuts to disability and sickness benefits in a Senedd debate. The Welsh government has come under pressure over decisions made in Westminster to change personal independence payments (PIPs). It is the latest in a line of criticisms made by Labour Senedd politicians of the UK government in the last few days. Plaid Cymru accused the Welsh Labour government of not going far enough in challenging its Westminster colleagues. Earlier on Wednesday Finance Secretary Mark Drakeford said it was "wrong" Welsh public services faced a shortfall of £65m due to the National Insurance increases. On Tuesday, the first minister appeared to publicly criticise the Welsh secretary for saying she had welcomed the benefits changes. What are the Pip and universal credit changes and who is affected? Voters take our policies for granted - first minister FM criticises UK minister for saying she backs cuts On Wednesday First Minister Eluned Morgan said she was "really worried" about the benefits changes. She has called for a specific Wales impact assessment - a request that has not been fulfilled by her colleagues in Westminster. The debate took place after Labour agreed on Tuesday to the Plaid Cymru proposal for the matter to be discussed in the Senedd. Plaid Cymru MS Sioned Williams urged the Welsh government "to show leadership on this matter, which up to now has been conspicuous by its absence". Alun Davies, Labour MS for Blaenau Gwent and a former minister, said the UK government was in "danger of repeating the same mistakes as the Liberal Democrats made in 2010, by accepting a Conservative economic analysis and then becoming the over-enthusiastic supporters of Tory austerity". Davies said if people in his constituency are not able to receive support as a consequence of the decisions "then they will be the wrong decisions". He suggested the UK government should have spoken to the Welsh government before the publication of the green paper which set out the proposals, and called for "the most vulnerable people in Wales" to be "protected from the damaging consequences of some of these decisions". Jenny Rathbone, Cardiff Central Labour MS, said while a £3 increase in universal credit was welcome, it was "overwhelmingly overshadowed by the £5bn that the UK government is wanting to cut from these benefits". Hefin David, Caerphilly Labour MS, said he was "happy to take" Work and Pensions Secretary Liz Kendall "at her word when she said... the green paper is the beginning of the conversation and not the end point". But he said he was concerned at "some of the language" in the document relating to individuals with mental health conditions, saying some people could be autistic and undiagnosed. "If the level that they have to reach in order to qualify for a PIP is raised, yet they have an underlying condition, I would like the UK government to consider that those PIPs cannot be removed, or any support be removed, until they've gone through the diagnostic process." Plaid Cymru leader Rhun ap Iorwerth said: "The last fortnight has been revealing in several respects: a Westminster Labour government announcing welfare changes that will penalise the most vulnerable - a Labour Welsh government silent in the face of a storm of protest." Welsh Liberal Democrat Jane Dodds said cutting benefits "is a total false economy". She said disabled people's medical needs "will increase, more people will be pushed into poverty". The Conservatives in Westminster have said that the changes were "too little, too late" and needed to be "tougher". But in the Senedd, Altaf Hussain of the Welsh Conservatives, said: "The pathways to work green paper is causing real and deep concern amongst those in receipt of health-related benefits across the length and breadth of Wales. "This is just adding to the concerns for our disabled constituents, which will not be addressed by this debate today." Jane Hutt, social justice minister, said she wanted to reassure people that the "Welsh government will make sure our voices, and most importantly, the voices of disabled people and their representatives, are heard by the UK government". During her speech, ex-minister Lee Waters said: "Isn't the problem the feeling that the savings are motivated by a need to meet a notional cut in the Office for Budgetary Responsibility forecasts, not in a first-principles exercise about how to deliver an optimal welfare system." He said the Welsh government "should say loud and clear that that is the wrong starting point". "I think we have reserved judgment, haven't we," said Hutt. "The first minister has made that very clear. What we do need to do is that we need to understand the evidence that is coming forward about the impacts of these proposals."
