Welfare Reform may lead to devolved disability benefits cuts

Glasgow Times

30-06-2025

By last week, 127 Labour MPs had signed an amendment to scupper the Bill, forcing Keir Starmer to pledge a number of concessions.
The comprise isn't pretty. Instead of wide sweeping cuts to the personal independence payment (PIP) in England, carer's allowance and the health element of universal credit in the UK, existing claimants will enjoy transitional protection.
New claimants for PIP in England and disability benefits will find it more difficult to qualify due to tougher eligibility rules from next year if the Bill is passed.
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Since Covid-19, PIP awards have more than doubled from 13,000 a month to 34,000 – with more people suffering from mental health problems such as depression and anxiety.
Essentially, the UK government want to make big savings. Initially, they were aiming for a £5 billion cut per annum, but with concessions, the cut is thought to be around £3 to £3.5 billion each year.
The new '4-point rule' for daily living activities will mean disabled people who need help to go to the toilet, cut up food, or wash themselves are likely to be denied PIP.
How can this be fair or equitable? Critics have claimed it's a two-tier system devoid of fairness. Two people with the exact same disabilities will be treated differently based on the date of their claim.
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New disabled claimants in 2026/27 will be treated less favourably, losing around £4,500 per annum in financial support, simply because of the date of their claim. Many people need PIP to be able to work as people with disabilities; the logic in restricting such support makes little sense.
In truth, the welfare cuts are a larger version of the doomed winter fuel payment (WFP) fiasco – a raid on people's pockets to make savings for HM Treasury. We seem to have endless billions for bombs and defence spending, but not for people in need.
If the Bill is passed, what might this mean for Scotland's adult disability payment (ADP) – a devolved benefit to the Scottish Parliament?
If PIP is cut across the rest of the UK for new claimants, this could result in cuts for the Scottish government of £250 to £300 million as a Barnett formula reduction.
The Scottish government don't have the financial headroom to fill such a gap. Remember the WFP cut last winter was a reduction of around £140m for Scotland in 2024/25, and the Scottish government passed that cut onto pensioners.
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It seems likely, the Welfare Reform Bill would put pressure on the Scottish government to reduce ADP for people with disabilities. It's not easy to fill a quarter of a billion funding hole.
Might there be challenges to new laws? The Bill discriminates against new claimants for no principled reason other than the date they became disabled or made a claim for support.
In terms of the 2010 Equality Act, 1998 Human Rights Act and the common law, there may well be scope to challenge such laws as discriminatory, irrational and unlawful.
Lady Hood's judgment in the recent WFP case, although unsuccessful, was successful in relation to the right of standing to sue the UK government in Scotland for a Barnett formula reduction in funding