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BENEFITS HIT

Raft of benefits CUTS to be unveiled with PIP eligibility taking huge hit & 1M affected – what does it mean for you?

The benefits bill has risen to £48billion in 2023-24 and is forecast to reach £67billion in 2029-30

KEIR Starmer's Government is poised to confirm cuts to welfare on Tuesday amid mounting backbench disquiet about the potential extent of the reforms.

Work and Pensions Secretary Liz Kendall is expected to outline plans to get more people back to work and cut the cost of the rising benefits bill.

Keir Starmer, Prime Minister of Britain, at a meeting in 10 Downing Street.
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Sir Keir Starmer's Government is poised to confirm cuts to welfare on TuesdayCredit: Getty

Downing Street has said there is a "moral and an economic case" for an overhaul and that the changes would put the welfare system "back on a more sustainable path".

There have been reports that the changes could slash some £5billion of welfare payments.

But there has been mounting unease on the Labour Party's backbenches ahead of the anticipated changes, including over potential changes to the personal independence payment (PIP), the main disability benefit.

Reports suggest the scale of the backlash has prompted a rethink of rumoured plans to freeze the level of PIP rather than increase it in line with inflation, delivering a real-terms cut to 3.6 million claimants.

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Ms Kendall sought to reassure MPs on Monday that the reforms would ensure "trust and fairness" in the social security system and make sure benefits are available "for people who need it now, and for years to come".

Ministers insist that reform is necessary, given the number of people in England and Wales claiming either sickness or disability benefit has soared from 2.8 million to about 4.0 million since 2019.

The benefits bill has risen with this increase, reaching £48billion in 2023-24, and is forecast to continue rising to £67billion in 2029-30.

Number 10 has denied that the plans are purely as a result of the UK's difficult fiscal situation.

  • SNP calls for '11th-hour U-turn'

    Sir Keir Starmer has been urged to perform an ";11th-hour U-turn" on reports that he plans to slash billions from the welfare budget.

    The SNP warned that any "return to austerity will haunt the Labour Party for the rest of its time in government".

    On Monday, John Swinney urged the Prime Minister to "think again" and abandon cuts that would "punish" the most vulnerable people in the UK.

    The First Minister said: "I've seen a lot of speculation. I don't like the look of the speculation that I'm seeing because I think that has the potential to have an effect on the resources that we have available to invest in social security."

    He added: "What I would say in general is that, at this particular moment in time, I don't think that the right thing to do is to punish those who face vulnerability in our society by the type of cuts that have been talked about by the UK Government.

    "I would encourage the UK Government to think again."

    Credit: Getty
  • Cutting PIP was 'not a Labour thing to do'

    Diane Abbott, one of Labour's veteran MPs, told BBC Radio 4's Today programme that she agreed that cutting Pip was "not a Labour thing to do".

    The Hackney North and Stoke Newington MP also said she had "no sympathy" with those who said claiming welfare was a "lifestyle choice", adding: "I think being on welfare is very depressing. It's very humiliating. It sort of brings you down."

    She suggested the Government should consider a 2 per cent wealth tax on the richest in society instead of the welfare cuts, as a means to control public spending.

    Credit: PA
  • Number 10 denies plans are result of the UK's fiscal situation

    Downing Street said earlier that there is a moral and economic case to overhauling the system.

    Number 10 has also denied that the plans are purely as a result of the UK's difficult fiscal situation.

    The Prime Minister's official spokesman told reporters: "I think the Prime Minister has been clear there is both a moral and an economic case for fixing our broken social security system that's holding our people back, and our country back.

    He added: "That is why tomorrow the Government will set out plans to overhaul the health and disability benefits system so it supports those who can work to do so, while protecting those who are most in need, and put the welfare system back on a more sustainable path."

    Asked if the reforms were being carried out because of the UK's fiscal backdrop, the spokesman replied: "No, I think when you look at the fact that we have the highest level of working-age inactivity due to ill health in western Europe, we're the only major economy whose employment rate hasn't recovered since the pandemic, there is a duty to fix the broken system that is letting millions of people in this country down."

  • PM says he has 'moral' duty to cut benefits

    Sir Keir Starmer has warned Labour rebels he has a "moral" duty to cut benefits – as it emerged a million will be blocked from health and disability support.

    The PM is pushing ahead with £5billion in welfare cuts.

    That is despite a Labour civil war brewing over the overhaul.

    READ MORE HERE

  • Andy Burnham urges 'caution'

    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."

    Credit: EPA
  • PM faces backbench discontent

    Sir Keir Starmer faces mounting backbench discontent as the Government prepares to announce sweeping changes to the welfare system this week.

    Several backbenchers expressed frustration at a lack of communication from ministers.

    One described "engagement sessions" held by Number 10 as "a tick box exercise" and another saying many of their colleagues had made it clear they would vote against such proposals.

    A spokesperson for the Department for Work and Pensions said: "We have been clear that the current welfare system is broken and needs reform, so it is fairer on the taxpayer and helps long-term sick and disabled people who can work to find employment, whilst ensuring it provides support for those who need it most."

    Credit: PA
  • What is PIP and who is eligible?

    Households suffering from a long-term illness, disability or mental health condition can get extra help through personal independence payments (PIP).

    The maximum you can receive from the Government benefit is £184.30 a week.

    PIP is for those over 16 and under the state pension age, currently 66.

    Crucially, you must also have a health condition or disability where you either have had difficulties with daily living or getting around - or both - for three months, and you expect these difficulties to continue for at least nine months (unless you're terminally ill with less than 12 months to live).

    You can also claim PIP if you're in or out of work and if you're already getting limited capability for work and work-related activity (LCWRA) payments if you claim Universal Credit.

    PIP is made up of two parts and whether you get one or both of these depends on how severely your condition affects you.

    You may get the mobility part of PIP if you need help going out or moving around. The weekly rate for this is either £28.70 or £75.75.

    On the daily living part of PIP, the weekly rate is either £72.65 or £105.55 - and you could get both elements, so up to £184.30 in total.

    You can claim PIP at the same time as other benefits, except the armed forces independence payment.

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