Charity warns DWP welfare reforms U-turn will create ‘two-tier' benefits system
Disabled people could face extra costs of almost £15,000 a year by the end of the decade, according to analysis from a charity published on the eve of an expected vote on planned Department for Work and Pensions (DWP) welfare reforms (July 1).
Disability equality charity Scope has warned that UK 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 annual disability price tag report comes just a day before MPs are expected to debate and vote on the UK Government's welfare reform Bill.
Ministers were forced into an eleventh-hour climbdown on Friday, June 27 in the face of a major backbench rebellion, offering concessions on some aspects of Labour's proposed cuts plan.
The UK Government's original package, first presented in March, included restrictions on eligibility for Personal Independence Payment (PIP), its main disability benefit currently supporting over 3.7 million people in England and Wales, as well as cutting the health-related element of Universal Credit.
But, in the face of pressure from more than 100 Labour MPs, the UK Government U-turned last week, saying existing claimants would be protected, with tightened eligibility only applying to new claimants from November 2026.
While Prime Minister Sir Keir Starmer has said his welfare reforms now strike 'the right balance', Scope argues 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 Uk Government's 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.
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 Universal Credit changes apply to Scotland.
Social Justice Secretary Shirley-Anne Somerville reassured disability benefit claimants north of the border that changes will not be applied to Adult Disability Payment.
Ms Somerville said: 'The changes now being proposed by the UK Government would create a two-tier system, which cannot be fair.
'And this half U-turn still does not scrap the rule which will deny Personal Independence Payment to people unless they score four points or more for at least one activity. This will prevent support for hundreds of thousands of people with disabilities in the future.
'These reforms have been shambolic from the start. They will be hugely damaging to those who rely on social security support, and still seek to balance the books by targeting the most vulnerable.
'The UK Government's own analysis highlights how the proposals will push 250,000 more people across the UK into poverty - including 50,000 children. With around half of all children in poverty in Scotland living in a household with a disabled person, the changes threaten to undermine the progress that we are making to reduce child poverty, and the work of the UK Government's Child Poverty Taskforce.'
She added: 'The reforms do not reflect the Scottish Government's values. We will not let disabled people down or cast them aside as the UK Government has done and we will not cut Scotland's Adult Disability Payment.
'There is still time for the UK Government to step back from this damaging policy and scrap their harmful proposals.'
A UK 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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