Disabled people ‘could face extra annual costs of £15,000 by end of the decade'
Disability equality charity Scope has warned that Government concessions on welfare cuts will simply lead to a 'two-tier system' where 'huge numbers' of people in need are still out of pocket.
Its analysis has estimated average monthly costs – not taking into account welfare reforms – to cover extras such as higher energy bills or specialist mobility equipment, are likely to rise to £1,244 for disabled people in the UK, totalling almost £15,000 a year, by April 2029.
'The concessions put forward by Government will just create a two-tier system, where huge numbers of disabled people face the disability price tag with little or no support from Pip. James Taylor, Scope
The annual disability price tag report comes just a day before MPs are expected to debate and vote on the Government's welfare reform Bill.
Ministers were forced into an eleventh-hour climbdown on Friday in the face of a major backbench rebellion, offering concessions on some aspects of Labour's proposed cuts plan.
The Government's original package, first presented in March, included restrictions on eligibility for personal independence payments (Pip), the main disability payment in England, as well as cutting the health-related element of universal credit.
But, in the face of pressure from more than 100 Labour MPs, the Government U-turned last week, saying existing claimants would be protected, with tightened eligibility only applying to new claimants.
While Prime Minister Sir Keir Starmer has said his welfare reforms now strike 'the right balance', Scope argued the changes will still result in 'catastrophic cuts', with some disabled people protected and supported but others not.
The charity's latest report is based on analysis of the Family Resources Survey (FRS) and makes calculations using Office for Budget Responsibility (OBR) inflation forecasts to show the likely extra costs faced by disabled people in the coming years.
It does not take into account the impact of the welfare reforms, with the charity warning that the figures highlight that those people who do not get Pip could end up in a 'precarious financial position and will still face high extra costs'.
It estimated extra costs for disabled people are currently at £1,095 a month, up from last year's price tag, which stood at £1,010.
Prime Minister Sir Keir Starmer has made concessions on his Bill in the face of opposition from Labour MPs (Paul Currie/PA)
Scope said benefits do not cover the entirety of these costs, with a current monthly shortfall of around £630, likely to rise to a £704 shortfall by the end of the decade.
James Taylor, executive director of strategy at Scope, said: 'Life costs an enormous amount more when you're disabled. Whether it's higher electricity bills because of medical equipment to power, or higher heating bills because of health conditions affected by the cold.
'Our latest analysis finds the price tag of disability is now £1,095 a month. A figure only set to increase in the coming years unless action is taken.
'The concessions put forward by Government will just create a two-tier system, where huge numbers of disabled people face the disability price tag with little or no support from Pip.
'The Government must change course on these catastrophic cuts now, and properly co-produce with disabled people on how to reform our welfare system.'
Responding to the 'two-tier' claims from other critics last week, Work and Pensions Secretary Liz Kendall said: 'The changes that we are introducing will make sure existing claimants are unaffected, but we also all agree that there do need to be changes in the future to make sure that people who can work do, so we protect those who can't but we make the welfare state sustainable for the future.'
While all of the Universal Credit and Personal Independence Payment Bill applies to England and Wales, only the UC changes apply to Scotland.
The Government said there are equivalent provisions to legislate for Northern Ireland included in the Bill.
A Government spokesperson said: 'We're delivering one of the biggest packages of welfare reforms in a generation – including scrapping the Work Capability Assessment, rebalancing Universal Credit, and investing in tailored employment support.
'Protecting people is a principle we will never compromise on, which is why we're delivering long-lasting and meaningful change that puts the welfare system on sustainable footing so the safety net will always be there for those who need it.
'We're restoring trust and fairness in the system, ensuring existing Pip claimants will be able to keep their award and putting the voice of sick or disabled people at the heart of our plans, whilst ramping up support to help them into work.'
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