Government Faces Backlash Over Potential PIP Benefits Freeze U-Turn

Speculation is rife that the government may reconsider its plan to freeze Personal Independence Payments (PIP), as Health Secretary Wes Streeting refrained from ruling out a U-turn amid growing concerns over Labour’s welfare reform plans.

Uncertainty Over PIP Amid Major Benefits Reform Plans

Reports indicate that Labour MPs have been summoned to No. 10 for discussions about significant cuts to welfare benefits, expected to be unveiled next week.

With at least 80 Labour MPs expressing strong opposition, tensions are rising over proposed changes that could impact some of the country’s most vulnerable individuals.

The proposed reforms aim to achieve £5 billion in savings by tightening eligibility for PIP, a non-work-related benefit designed to support individuals with disabilities. Additionally, the plan includes:

• Freezing PIP payments in 2025 instead of increasing them with inflation, effectively reducing real-term support for 3.6 million claimants.
• Adjusting Universal Credit rates, increasing support for those actively seeking work while reducing payments for those deemed unfit to work.
• Investing £1 billion into employment support programs to encourage job-seeking.

The overarching goal is to increase incentives for individuals with health conditions or disabilities to remain in the work-search category of Universal Credit, ultimately saving over £6 billion annually by 2030.

Ministers Under Pressure as Speculation Mounts

Work and Pensions Secretary Liz Kendall is expected to announce the reforms on Tuesday, with ministers arguing that the current welfare system is financially unsustainable. The disability benefits bill has surged post-COVID, projected to rise from £64.7 billion in 2023-24 to £100.7 billion by 2029-30.

Ahead of the announcement, rumors surfaced that the government might abandon the planned PIP freeze, following resistance from within Labour ranks. Many MPs believe freezing PIP is a step too far, considering its crucial role in supporting disabled individuals with additional costs.

Streeting: “Wait for the Plans”

Speaking on Sunday, Health Secretary Wes Streeting refused to confirm or deny the PIP freeze reversal, stating he had not yet reviewed the full proposals. Speaking to the BBC’s Sunday With Laura Kuenssberg, he emphasized that Work and Pensions Secretary Liz Kendall wants to support those who need it most.

However, Streeting also pointed to concerns over the “overdiagnosis” of mental health conditions, arguing that too many individuals are being deemed unable to work when they might still have employment potential.

Campaigners Warn of Dire Consequences for Disabled People

Disability advocacy groups have strongly opposed any cuts to PIP, warning that reductions in support would push disabled individuals further into poverty.

A recipient with multiple sclerosis, speaking to the MS Society, expressed fears about potential changes:
“Even with my husband’s income and my PIP payments, our finances disappear each month. My MS brings extra costs like supplements and therapies. A cut to PIP would make life even harder.”

Opposition Parties Demand Clarity and Action

Criticism has also come from opposition parties. SNP MP Kirsty Blackman called on Prime Minister Keir Starmer to apologize for allowing speculation to spread, urging the government to abandon any plans to cut disability benefits.

Stephen Flynn, the SNP’s Westminster leader, also condemned the proposals, calling on Labour to ditch Tory spending rules and reaffirm its commitment to supporting disabled individuals.

A Possible Lifeline: “Right to Try” Guarantee

To address concerns, Liz Kendall is expected to introduce a “Right to Try” guarantee, allowing disabled individuals to explore employment opportunities without immediately losing their benefits.

This move is in response to surveys indicating that many disabled people fear losing their entitlements permanently if they attempt to work but later find they cannot continue.

Final Word: Balancing Reform with Support

A government source defended the reforms, stating that the existing welfare system traps people on benefits without offering pathways to employment.

The new policies, they argue, will bring fairness and opportunity to disabled individuals while ensuring that welfare remains sustainable for those who genuinely need it.

As the announcement approaches, all eyes are on the government’s next move whether it will proceed with controversial benefit cuts or backtrack on freezing PIP in response to mounting opposition.