Labour Backtracks on £5BN Benefits Plan Amid Concerns Over Disabled Payments

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Labour is anticipated to perform an embarrassing reversal of their £5 billion welfare reduction policy as per Sir Keir Starmer and Liz Kendall are expected to withdraw their support for the contentious proposals.

Next week, the party planned to reveal several welfare changes that could result in approximately one million individuals losing their disability support. This move comes as Labour seeks to address the nation's increasing expenses related to social benefits.

The proposals, expected to be released the following Tuesday, suggested that only those with severe disabilities would meet the new requirements for assistance as part of changes to the qualifying conditions.

Included among the reductions were significant cuts to Personal Independence Payments (PIPs), anticipated to make up most of the projected savings, estimated at between £5 billion and £6 billion.

This significant change could result in reduced payments for individuals with chronic illnesses, people facing mobility issues, persons dealing with mental health disorders, those requiring hearing aids, and individuals struggling with fundamental everyday tasks.

Downing Street had also earlier cautioned that failing to act would result in benefits consuming additional taxpayer funds and leaving more individuals stuck in unemployment and idleness.'

However, ignoring the cautions, the restructuring was postponed by a week even though there were no pressing items on the government’s agenda. This delay came amidst whispers of an internal party uprising and vigorous backstage deliberations.

Concerns arose that numerous Members of Parliament opposed the proposed changes, leaving government officials rattled as critics charged they had introduced 'unjust' policies, including those formerly endorsed by past administrations. Tory Chancellor George Osborne has been against.

In an episode of his podcast Political Currency featuring former Labour shadow chancellor Ed Balls, Osborne commented that he believed changing PIP would not be seen as 'very fair,' although he had attempted to reform PIP.

Some key figures within the Labour party have apparently countered this initiative, with Keir Starmer’s deputy, Angela Rayner, as well as Energy Secretary Ed Miliband joining in the criticism.

Numerous individuals have voiced their opposition to reductions in Personal Independence Payments (PIPs), specifically, with leaders of disability charities describing these changes as 'profoundly harmful,' 'catastrophic,' and 'an extremely poor decision.' It’s reported that many have utilized private discussions to lobby for a reconsideration of these proposals.

According to the Guardian Last Tuesday’s cabinet meeting saw numerous concerns raised over public perception should the government fail to raise PIP in accordance with inflation and simultaneously make it more difficult for individuals to qualify for benefits.

In order to suspend PIP or modify the criteria for receiving this benefit, Labour would need to alter primary legislation, which could expose them to potential rebellion from within their own party ranks at Westminster—both in the House of Commons and the House of Lords.

Many Labour Members of Parliament have stated that they would oppose all the suggested plans if it were put to a vote in parliament, as reported. Observer .

However, Sir Keir Starmer stood firm on his proposals during a statement made on Thursday. He personally urged Labour Members of Parliament to support him regarding the benefit reductions, sharing memories of how his deceased mother and brother coped with disabilities.

He attacked the present 'unjustifiable' welfare system when questioned about possible reductions during Prime Minister’s Questions today.

He informed Members of Parliament: "My background includes dealing with disabilities within my family due to my mother and brother facing such challenges for numerous years."

'I certainly comprehend the issues that have been brought up... however, we took over a system that was already dysfunctional.'

It is unjustifiable both economically and ethically, and we must and will change it. We will establish clear guidelines, ensuring protection for those who require it.

We will also assist those capable of working to return to employment. However, Labor is the party that champions both work and equality.

In today’s later PMQs session, Sir Keir was advised by Labour backbencher Richard Burgon to opt for the 'ethical' decision and implement a wealth tax.

Instead of 'forcing the poor and vulnerable to bear the burden' by reducing disability benefits, the leftist member of parliament stated.

The changes will eliminate the 'work capability assessment' for benefits related to inability to work and focus on readying individuals with chronic illnesses for employment instead.

Ms. Kendall is anticipated to reduce the highest benefit rate for individuals considered incapable of working, which presently exceeds £800 monthly—twice the amount provided through unemployment benefits.

However, major alterations to the qualifying conditions for PIP benefits, which are distributed irrespective of employment status, will make up most of these modifications.

Approximately 3.2 million individuals receive Personal Independence Payments (PIPs) — an increase of over one million since 2019. It is estimated that this number will rise to about five million by the end of the decade.

The administration has indicated that while these modifications are particularly undesirable, they remain unavoidable—the projected rise in the cost of PIPs is expected to reach an additional £15 billion in real terms by 2030.

Ministers continue to clash with the budget watchdog while determining how much of the £5 billion in savings can be utilized, ensuring that the government won’t have to implement additional cutbacks or increase taxes later this month.

However, it is clear that part of these savings will go towards increasing the basic rate of universal credit and establishing a substantial £1 billion employment support program.

This step is described as "ethical" by the government, aimed at encouraging and motivating individuals to enter employment.

PIPs - the major controversy of the package - are currently awarded on a points system, with applicants getting scored based on how difficult they find certain everyday and mobility-related activities.

The amount of funding they obtain is based on the number of points they accumulate. These grants vary from £1,500 to £9,600 annually.

However, they intended that applicants must achieve a minimum of four points from at least one activity to be eligible for consideration regarding a payment. Requiring a hearing aid fails to meet this criterion.

Individuals requiring assistance with washing their lower half, including hair, would not be eligible for support; however, those needing aid with cleaning their upper body would qualify. Assistance with using the restroom meets the criteria, whereas merely needing reminders to do so does not.

People requiring assistance with preparing meals would be eligible for support, whereas those needing to learn how to use a microwave would not. Being prompted to meet individuals in person wouldn’t qualify for aid; however, getting help during these encounters would.

Candidates who secure the necessary four points required for eligibility will subsequently need an additional four points to achieve the reduced rate, followed by another eight points to attain the higher rate.

Narrowing the eligibility requirements in such a manner was anticipated to significantly impact individuals with mental health issues as well. These people represent 37 percent of new Personal Independence Payment (PIP) awards—up from 28 percent before the pandemic began.

It is believed that mental health issues are responsible for the doubled amount of under-40s applying for disability benefits.

However, with the expectation of the government making a complete reversal on their proposals, the SNP has urged Sir Keir Starmer to ‘apologize’ to individuals with disabilities for ‘permitting harmful speculations to circulate freely.’

Kirsty Blackman, who speaks for the party on issues related to work and pensions, stated that proposed reductions in disability benefits should be scrapped and criticized Labour for 'intentionally stoking rumors' in the press regarding their plans.

James Taylor, who serves as the executive director at the disability charity Scope, commented that boosting disabled individuals' "confidence to venture into employment" is "a positive step," yet he cautioned against substantial reductions in welfare support.

He stated: "We are concerned that disclosing information about this program now might be an attempt to obscure the distinction between benefits for those who are employed and those who are not."

The Personal Independence Payment was established because living expenses are higher for individuals with disabilities. This benefit is not intended for those who are unemployed.

'Strengthening access restrictions for benefits will only drive more disabled individuals towards poverty rather than helping them find employment.'

When asked about Labour's welfare policies at a press conference on Saturday, Sir Keir stated: "The principles are sufficiently clear. It is essential for us to provide support to those who require assistance and ensure their protection."

'However, we must also ensure that we provide support and protection for individuals who require assistance as they enter employment, something that the present system fails to accomplish effectively.'

'For this reason, it's crucial that we advocate for changing the welfare system, which is precisely what we're undertaking.'

A spokesman for the Conservative Party stated: "The Labour party is not implementing the necessary measures to address the unmanageable welfare costs."

Their lack of action has already resulted in a loss of £2.5 billion for taxpayers and the amount keeps increasing.

'The Conservatives are united in the belief that those who can work should, which is why we had a bold plan at the election to save £12 billion from the welfare bill.

'The Labour party has failed to develop any independent ideas. Their hesitation, postponement, and discord regarding the necessity to reduce welfare expenditures are unfair to British taxpayers.'

MailOnline has reached out to the DWP, No 10, and the Labour Party for their input.

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