DWP PIP overhaul for greater than 3million Brits causes indignant backlash

Liz Kendall is expected to set out plans for reform on Tuesday in an effort to get more people back to work and cut the cost of a benefits bill described by ministers as ‘unsustainable’

Sir Keir Starmer is facing a growing wave of unrest from his own backbenchers as the Government gears up to unveil major overhauls to the welfare system this week.

Work and Pensions Secretary Liz Kendall is tipped to lay out her reform plans on Tuesday, aiming to boost employment rates and slash what ministers have dubbed an ‘unsustainable’ benefits bill.

However, suggestions that these changes might involve trimming down the personal independence payment (PIP), the primary disability benefit, have triggered a storm of protest from Labour MPs. A number of backbenchers vented their frustration to the PA news agency about the lack of ministerial communication, with one labelling Number 10’s ‘engagement sessions’ as mere ‘tick box exercises’.

Another MP revealed that many of their colleagues had made it clear they would vote against such proposals. Rumours are swirling that the scale of the backlash has forced a re-evaluation of alleged plans to freeze PIP levels instead of raising them in line with inflation, effectively delivering a real-terms cut to 3.6 million claimants, reports Wales Online.

Yet other backbenchers are fuming that proposals like the PIP freeze had been leaked, suggesting to PA that this was done in ‘bad faith’ before any agreement had been reached between Ms Kendall and the Treasury. Ministers are banging the drum for reform, claiming the number of people in England and Wales on sickness or disability payments has rocketed from 2.8 million to a whopping 4.0 million since 2019.

The cost? A hefty £48 billion benefits bill in 2023/24, which is set to balloon to £67 billion by 2029/30 – more than the current schools budget. On Sunday, Health Secretary Wes Streeting said the full proposals are yet to come before Cabinet and urged the public not to listen to ‘speculation’.

He told the BBC: “What I do know is the Work and Pensions Secretary wants to support people who need help the most, and we’ve got to make sure that there is a wide range of support and that everyone’s playing their part.”

Meanwhile, Greater Manchester mayor Andy Burnham urged “caution” on benefit changes. Writing in The Times newspaper, Mr Burnham said he agreed that the welfare system needed “a radical overhaul”, but said the Government should focus on helping people into work rather than simply cutting benefits.

He said: “I would share concerns about changing support and eligibility to benefits while leaving the top-down system broadly in place. It would trap too many people in poverty. And to be clear: there is no case in any scenario for cutting the support available to disabled people who are unable to work.”

Over the weekend, Government insiders suggested that Ms Kendall’s reforms would feature a “right to try guarantee”. This would give disabled folks a shot at employment without the fear of losing their benefits if things did not pan out.

But Helen Whately, the Tory shadow work and pensions secretary, said: “The Government’s dithering and delay is costing taxpayers millions every day and failing the people who rely on the welfare system. Under new leadership, the Conservatives are the only party united in the need to reduce spending on benefits – which is why we committed to save £12 billion-a-year from the welfare bill which Labour scrapped. Labour must come forward with a serious plan to deliver savings.”