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£19.99The government is considering scrapping plans to freeze some disability benefits as ministers debate the potential impact of such a move, sources have revealed. Originally, reports indicated that Personal Independence Payments (PIP) would not see an increase in line with inflation for a year, prompting pushback from numerous Labour MPs who have expressed strong opposition in various forums. The proposed tightening of eligibility criteria for PIP aims to cut billions of pounds from the welfare budget, although dropping the freeze could prevent a contentious vote in the Commons, insiders suggest. Work and Pensions Secretary Liz Kendall is set to outline welfare reforms in a green paper to be released next week.
Additionally, a proposed “right to try” guarantee will be part of the reforms, offering individuals with disabilities the opportunity to pursue employment without the fear of losing their benefits if the employment does not prove sustainable. Following Kendall’s plan reveal, Chancellor Rachel Reeves is poised to disclose the extent of welfare spending reductions projected to range from £5 billion to £6 billion during her Spring Statement on 26 March. Reeves emphasized the need for the government to address the welfare bill, noting existing inefficiencies that do not serve the taxpayer or recipients. Forecasts indicate a significant rise in health and disability benefits spending from £64.7 billion in 2023-24 to £100.7 billion in 2029-30, with the most substantial increase attributed to welfare spending on working-age adults, according to the Office for Budget Responsibility.
Even with the anticipated stricter eligibility measures, sources suggest that there will still be an increase in PIP spending, although at a slower rate than initially projected. PIP aims to assist individuals with long-term physical or mental health conditions in covering additional living expenses, offering crucial support for those in employment and those who are severely disabled and unable to work. Assurance has been given to some MPs supporting welfare reform that severely disabled individuals will not be pressured to work or have their benefit entitlement compromised. The expected benefit system revisions follow the announcement of the government’s decision to disband NHS England, the agency currently overseeing the health service in England. Health Secretary Wes Streeting has hinted at further cuts to enhance service efficiency, emphasizing the need to address bureaucratic inefficiencies within the health sector
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