DWP Benefit Cuts: What’s at Stake in the Upcoming Spring Statement?

The UK government is reportedly preparing to announce significant cuts to the welfare budget in the upcoming Spring Statement on March 26. Chancellor Rachel Reeves is expected to outline plans to reduce spending on health-related benefits, with the goal of encouraging more people back into work.

However, these proposed cuts have sparked widespread concern, with charities and experts warning they could push vulnerable individuals deeper into poverty.

Which Benefits Could Be Affected?

The government has signaled that disability-related benefits will be targeted, particularly:

• Personal Independence Payment (PIP): A non-means-tested benefit that helps individuals with daily living tasks and mobility issues.
• Disability Living Allowance (DLA): Provides financial support for disabled children under 16.

For some, these benefits supplement their income, while for others, they serve as their only financial support. Any reduction in these payments could have a devastating impact on disabled individuals and their families.

Why is the Government Cutting Benefits?

Since winning the election in July, the government has focused on reducing the number of people classified as “economically inactive” due to long-term sickness.

Key reasons behind the proposed cuts:

• A government study found that 200,000 people on health-related benefits could work if given the right support.
• The cost of health and disability benefits for working-age individuals has risen by £20 billion since the pandemic and is forecast to reach £70 billion over the next five years.
• The Office for Budget Responsibility (OBR) has projected that health-related benefit costs could rise to £100 billion a year from the current £65 billion.

The government argues that reducing benefit dependency will help boost the economy and improve people’s well-being. However, critics fear these cuts will create further financial hardship for already struggling individuals.

What Are the Concerns?

Charities and advocacy groups have voiced strong opposition to the cuts, warning that they will disproportionately impact disabled individuals and low-income families.

Major concerns include:

• Increased hardship: Many recipients already struggle to afford basic necessities. Turn2Us warns that further cuts could push more people into extreme poverty.
• Higher costs for disabled households: According to Scope, disabled individuals spend £625 more annually on essentials, with some facing £200 extra per month in utility costs to run life-saving medical equipment.
• Risk of greater poverty: Joseph Rowntree Foundation reports that 1 in 5 people in the UK already experience in-work poverty, meaning these cuts could worsen financial struggles even for those who are employed.

James Taylor from Scope emphasizes that reducing benefits will not drive people into work it will only push them further into hardship.

“Investment in tailored, non-compulsory employment support will help disabled people and the economy. But making it harder to get benefits will just push even more disabled people into poverty.”

International Criticism of UK Welfare Spending

The United Nations (UN) has also criticized the UK’s “insufficient social spending”, especially as inflation continues to rise. A recent UN report urged the government to:

• Remove the two-child benefit cap
• Scrap the five-week wait for the first Universal Credit payment
• End the freeze on income tax thresholds introduced in 2022

Human rights organizations argue that the government is making “political choices” that exacerbate poverty, rather than strengthening the social safety net.

“Every day of inaction pushes more people into poverty,” says Kartik Raj from Human Rights Watch.

What’s Next?

With the Spring Statement set for March 26, all eyes are on the government to see how far these cuts will go. Meanwhile, charities and advocacy groups continue to push for policy changes that protect the most vulnerable rather than deepening their financial struggles.

Will the government reconsider these proposed cuts in the face of growing opposition? The coming weeks will be crucial in determining the future of disability and welfare support in the UK.