Published On: Wed, Mar 12th, 2025
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‘PIP has nothing to do with work’ as proposed benefit changes slammed | Personal Finance | Finance

The Chancellor is facing stark warnings about the potential ‘devastating impact’ of proposed changes to disability benefits.

In the run-up to Rachel Reeves’ spring statement and ahead of significant tax and benefit adjustments set for next month, charities nationwide are voicing their concerns.

The spotlight is on Labour’s Get Britain Working policy initiative, which has sparked fears of severe alterations to Personal Independence Payments (PIP).

Currently, PIP stands as the primary disability benefit provided by the DWP. However, James Watson-O’Neill, Chief Executive of national disability charity Sense, has cautioned that the government might not fully grasp the purpose of PIP if it is considering reforms.

He criticised: “Personal Independence Payment (PIP) has nothing to do with work.”

He further explained the necessity of PIP, stating: “It exists because living with a disability means facing higher costs, from increased energy bills to specialised equipment and specific diets. These additional expenses won’t disappear if eligibility is tightened. It will only plunge more disabled people into poverty.

“Cutting benefits will have a devastating impact on disabled people and their families. Making it harder to access benefits won’t help disabled people find jobs either. It will only deepen the struggle.”

He called on the government to turn their attention towards improving job accessibility for disabled people rather than reducing their financial backing.

He pointed out: “Assistive technology needs to be swiftly rolled out in job centres. Work coaches must be expertly trained. And disabled people with complex needs who cannot work need protections – not sweeping benefits cuts.”

However, it’s not just Sense urging a rethink of the proposed changes; Rebecca Lamb from Money Wellness also voiced her concerns.

She highlighted the delicate balance required by saying: “We understand the need to reduce the overall benefits cost to the country, but it is essential that any changes do not leave the most financially vulnerable people struggling.”

Their data exposes a tough reality for disability benefit claimants, who find themselves with an average disposable income in the negative, at -£138 per payment period, a stark contrast to the -£9 for employed individuals not reliant on such benefits.

Echoing these thoughts, she reiterated the critical role of PIP, underscoring its original purpose: “The reason for PIP seems to have become lost in the debate. It is important to recognise that it was never designed to get people back into work-it exists to help cover the additional costs associated with being disabled or having a long-term health condition.

“These costs, such as specialist equipment, transport, and higher energy bills, can make day-to-day living far more expensive. Any reform must recognise this and ensure that those with disabilities or long term health conditions are not pushed further into financial crisis.”

Various groups have reached out to Rachel Reeves, urging her to implement protections for disability benefits in the forthcoming spring statement.

With the statement scheduled for March 26, and considering the present economic situation, analysts anticipate a series of expenditure reductions will be revealed, adding to the adjustments set to commence in April following Reeves’ October Budget.