Inside the DWP benefit reforms as Labour publishes cuts to PIP and Universal Credit

Yahoo

18-06-2025

The government's contentious reforms of the welfare system are poised to make their initial appearance in Parliament today.
Set for introduction in the House of Commons, the Welfare Reform Bill will be debated by MPs who will finally get the opportunity to dissect how Labour plans to cut back on the DWP's ballooning £275 billion budget.
Central to the sweeping changes is a revision of the criteria for England's main disability allowance, Personal Independence Payment (PIP), that could see tighter control on eligibility rules. Measures are proposed to reduce and defer the illness-related component of Universal Credit (UC), reserving claims to those aged 22 and above.
This suite of changes, aimed at moving claimants from sickness benefits back into employment, could help the Government make an estimated annual saving of £5 billion.
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However, imminent clashes loom within the Commons, with numerous Labour backbench MPs previously condemning the overhaul as "impossible to support".
Labour MP Brian Leishman called the reforms "awful", saying: I'll vote against these awful welfare reforms. A Labour government should lift people out of poverty, not put people into it. If you agree, then please write to your MP and tell them that."
As the proposal begins its journey through Parliament, the latest figures have highlighted that over 3.7 million individuals in England and Wales now claim PIP - with teens and young adults increasingly relying on the benefit for financial support.
Stats released by the Department for Work and Pensions this Tuesday revealed a peak figure of 3.74 million PIP claimants across England and Wales as of April, up from 3.69 million in January and marking a significant surge from 3.54 million the previous year.
Figures starting from January 2019 reveal there were 2.05 million Personal Independence Payment (PIP) claimants, with the benefit designed to support those with additional living costs due to long-term physical or mental health conditions or disabilities.
The data has shown an increase in the proportion of teenagers and young adults receiving PIP, with 16.5 per cent of claimants being between the ages of 16 and 19 as of April this year, a rise from 14.6 per cent since April 2019.
Additionally, the 30-44 age bracket has seen growth, while the number of claimants aged 45-59 has decreased. Those between 60 and 74 years old have also seen a slight increase in claimant numbers, up from 29.3 per cent to 30.8 per cent.
Recent reports state that Work and Pensions Secretary Liz Kendall has conceded to embed "non-negotiable" safeguards into upcoming legislation. These safeguards will ensure recipients who fail to meet new PIP criteria will still receive payments for 13 weeks after disqualification, an extension from the current four-week period.
This measure is understood to be an attempt to quell potential uprisings from Labour MPs who are critical of the broader reforms; however, one MP has minimised the significance of these concessions by labelling them as "not very much really".
Downing Street insisted it was "crucial to say we are committed to the reforms that we've set out". A spokesperson from Number 10 said: "You've heard that from the Prime Minister, the Chancellor, the Work and Pensions Secretary, on the principles behind this and the urgent need for this.
"You have the statistics, they show we have the highest level of working age inactivity due to ill health in Western Europe. We're the only major economy whose employment rate hasn't recovered since the pandemic."
PIP will remain "an important non-means-tested benefit for disabled people and people with long-term health conditions, regardless of whether they are in or out of work", he said. However, he noted that the Government aims to create a "system that is fairer" through its proposed reforms.
It is believed that changes to Pip could reduce benefits for approximately 800,000 individuals.
Ms Kendall had previously remarked that there are 1,000 new Pip awards every day – "the equivalent of adding a city the size of Leicester every single year".