Sam
Since the announcement of welfare cuts in March, there has been growing concern from disabled individuals, charities, and MPs.
These cuts have sparked widespread debate and protests, affecting government figures such as Sir Keir Starmer and his ministers as they work to secure support for the planned changes within the Labour Party.
As over 120 Labour MPs voiced their opposition, the government is now contemplating concessions in response to this backlash. But what exactly are these changes, how many people will be impacted, and why is there such strong opposition from MPs?
What is PIP and Who Will Be Affected?
Personal Independence Payment (PIP) is a welfare payment designed to support individuals with long-term physical or mental health conditions and disabilities.
This benefit helps cover the additional costs of living with a disability, regardless of an individual’s ability to work. PIP currently assists 3.7 million claimants, but under the new reforms, around 800,000 people are projected to lose or receive reduced benefits.
Key Changes to PIP
PIP consists of two components:
- Daily Living Component: This assists with daily tasks.
- Mobility Component: This helps with travel-related expenses.
The mobility component remains unaffected by the reforms. However, the eligibility for the daily living component will be tightened, making it harder for individuals to qualify. Under the new rules, claimants must score a minimum of 4 points for one activity instead of accumulating points from multiple tasks.
For example, someone needing help washing their hair would score 2 points, meaning they would no longer qualify. However, needing assistance with washing between the shoulders and waist (which is worth 4 points) would make them eligible.
Claimants who receive the daily living component currently get:
- Standard rate: £72.65 per week
- Enhanced rate: £108.55 per week
Moreover, there will be a 13-week transition period for anyone losing their PIP, replacing the typical four-week transition period.
Changes to Universal Credit (UC) and Impact
Universal Credit (UC) is a monthly benefit for individuals needing help with living and housing costs. The basic rate for single claimants over 25 is £400.14 per month, with an additional £416.19 per month for those with a limited capacity to work due to disability or long-term illness.
Key Reforms to UC
The UC health top-up for new claimants will be significantly reduced. From 2026, the top-up will drop from £97 a week to £50 and will remain frozen until 2030.
Existing claimants will also experience a freeze on this top-up. However, the basic rate of Universal Credit will increase to £106 a week by 2030.
Estimated Impact on People
The government estimates that 3.2 million families will be financially affected by these changes, with an average loss of £1,720 per year. Additionally, about 370,000 current PIP claimants will no longer qualify, and 430,000 future claimants will receive less support than under the current plan.
The changes to UC will impact 2.25 million existing claimants, who will lose an average of £500 per year due to the freeze on the health top-up. Meanwhile, 730,000 future claimants will lose about £3,000 annually.
In total, these changes could push around 250,000 more people, including 50,000 children, into relative poverty by 2029-2030.
Why Are MPs Opposing These Changes?
Many Labour MPs have expressed their strong opposition to these reforms, and more than 120 MPs have signed a petition to block the legislation. If all opposition parties unite, only 83 Labour MPs need to join them to defeat the bill.
The Conservative Party has also stated that it may support the reforms, but only under specific conditions, including the rejection of tax hikes and cuts to unemployment benefits.
Kemi Badenoch, a government minister, suggested that the Conservative Party would offer support if the government agrees to these conditions, but so far, discussions remain unresolved.
Prime Minister Sir Keir Starmer has defended the reforms, acknowledging the resistance but stating that reform is necessary for the country’s future. However, the government has signaled a willingness to negotiate, as backbench MPs continue to voice their concerns.
The proposed welfare cuts, including changes to PIP and Universal Credit, have sparked significant controversy and opposition across multiple political parties. With millions of people set to be impacted, especially the most vulnerable, these changes are a focal point of heated debate.
Although the government aims to reduce the welfare bill, the potential consequences could push many families deeper into poverty. The situation remains fluid, with the government discussing possible concessions in an attempt to gain broader support.
FAQs
How will the new PIP changes affect claimants?
The changes will make it harder to qualify for the daily living component, tightening the criteria for eligibility.
When will the Universal Credit changes take effect?
The reductions to the UC health top-up for new claimants will begin in 2026, and the top-up will be frozen until 2030.
How many people will lose benefits due to these reforms?
An estimated 800,000 PIP claimants will be affected, along with 2.25 million UC claimants, who will lose an average of £500 per year.