Rachel Reeves to unveil MORE benefit cuts in Spring Statement today
RACHEL Reeves is expected to unveil more benefit cuts in the Spring Statement today.
It comes just days after the Chancellor unveiled a sweeping package of cuts to the UK’s welfare system.
The measures, which include plans to restrict eligibility for Personal Independent Payments (PIP), were expected to save the government £5billion.
However, an assessment carried out by the Office for Budget Responsibility has said the proposed cuts will only save around £3.4billion.
That is according to a report in The Times, which said the Chancellor is expected to announce another £500million worth of welfare cuts to help balance the books.
The new package will see Universal Credit incapacity benefits for new claimants frozen until 2030 rather than increased inline with inflation.
It comes after the government proposed last week that new claimants would see their payments fall from £97 per week to £50.
While existing claimants will see the top-up frozen at £97 a week until 2030, which is a year-on-year real-terms cut.
The benefit provides support for those who are unable to work due to an illness or disability.
Elsewhere, the outlet said there will be cut to the basic rate of Universal Credit in 2029, after an earlier increase on £7.
Reeves is expected to raise about £500million by 2030 from these cuts.
The full package of cuts will be unveiled during the Spring Statement at 12pm today.
The government has been looking for ways to shore up the UK’s finances following the leadership of the previous Conservative government and also get Brits back to work.
An impact assessment will also be published today which is expected to say the poorest households across Britain will be the hardest hit.
These measures join a number of other cuts to the UK’s welfare system.
Last week, the government also proposed merging jobseekers’ allowance and employment support allowance, where people who have worked get more than those who have not.
Meanwhile a new eligibility criterion will be introduced for the daily living component of PIP.
To receive the £105 per week support, Claimants must achieve a minimum score of four points in at least one of the daily living activities evaluated during the assessment to be eligible.
Currently, it is possible to qualify for the daily living component with a lower overall score spread across multiple activities.
This change means individuals with lower needs in daily living activities could no longer be eligible for the aid.
The government said that this change will impact some current claimants and is considering how to best support them, including options for transitional protection.
They are also consulting on further support measures and a review of the PIP assessment process.
The Sun has approached the Treasury for comment.
WHAT OTHER CHANGES HAVE BEEN ANNOUNCED?
The move comes as part of a huge package of cuts to the UK’s benefit system as the Treasury looks for ways to plug a hole in public finances.
The key changes include:
- Merging jobseekers’ allowance and employment support allowance, where people who have worked get more than those who have not
- Scrapping the Work Capability Assessment by 2028, with all health payments made via PIP in future
- Under-22s to be banned entirely from claiming Universal Credit incapacity benefits
- An above-inflation rise to the standard allowance of Universal Credit, but the highest incapacity payment cut
- A much higher bar for people to claim Personal Independence Payments to save £5billion a year
- A “right to try” scheme that allows jobless Brits to have a go at working without losing their benefits if they cannot manage
Read our article to find out exactly what the changes could mean for you.
What is PIP?
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 £172.75 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 £26.90 or £71.
While on the daily living part of PIP, the weekly rate is either £68.10 or £101.75 – and you could get both elements, so up to £172.75 in total.
You can claim PIP at the same time as other benefits, except the armed forces independence payment.
Make a claim by calling the Department for Work and Pensions (DWP) on 0800 917 2222.