overnment May Scrap Plans to Freeze Key Disability BenefitLabour Faces Internal Opposition as Ministers Rethink PIP Reforms
Ministers are considering dropping plans to freeze Personal Independence Payments (PIP) amid growing backlash from Labour MPs, the BBC understands. While the government remains committed to tightening eligibility criteria and reducing welfare spending, abandoning the proposed freeze could help avoid a divisive Commons vote.
Internal Pressure and Policy Revisions
Initial reports suggested that PIP, a key disability benefit, would not rise in line with inflation for a year. However, many Labour MPs, including those traditionally loyal to the leadership, have voiced strong opposition in meetings at No.10 and in discussions with party whips and ministers. The opposition has prompted a rethink within the government, even as it seeks to cut billions from the welfare budget.
Work and Pensions Secretary Liz Kendall is expected to unveil a green paper next week detailing broader welfare reforms. One significant proposal includes a “right to try” guarantee, allowing individuals with disabilities to attempt employment without risking their benefits if the job does not work out.
Government’s Justification and Opposition Criticism
Health Secretary Wes Streeting addressed the matter on Sunday with Laura Kuenssberg, stating that he had not yet seen the full proposals but emphasized that Kendall was focused on supporting those who need help the most. He also highlighted concerns over what he described as an “overdiagnosis” of mental health conditions, arguing that too many people are being “written off” rather than receiving early intervention support.
On the same programme, Shadow Education Secretary Laura Trott criticized the government’s handling of welfare reform, accusing it of being “all over the place and divided.”
The Bigger Picture: Austerity vs. Support
The proposed reforms come amid broader efforts to curb rising welfare expenditure. Chancellor Rachel Reeves is set to reveal the full scale of spending cuts—expected to range between £5bn and £6bn—in her Spring Statement on 26 March. Speaking on Friday, Reeves stressed the need to “get a grip” on the welfare bill, arguing that the current system fails both taxpayers and recipients.
Total spending on health and disability benefits is forecast to surge from £64.7bn in 2023-24 to £100.7bn by 2029-30, according to the Office for Budget Responsibility (OBR). The fastest-growing component of this increase is working-age welfare spending, with PIP being the second largest single expenditure in that category.
In 2023-24, PIP payments totaled £18bn, a figure projected to nearly double to £34bn by 2029-30. The number of claimants is also expected to rise sharply, from 2.7 million to 4.2 million.
PIP is designed to assist individuals with long-term physical or mental health conditions by covering extra living costs. Some recipients argue that the benefit is essential for maintaining employment, while others, who are severely disabled and unable to work, rely on it as their primary support.
Political and Social Implications
While Labour’s large Commons majority means a freeze on PIP could technically pass a vote, internal party divisions could expose significant ideological rifts. Sources suggest that the government’s planned restrictions on PIP eligibility will still be contentious, sparking concern among Labour MPs who worry about the impact on vulnerable communities.
With a balancing act between fiscal responsibility and social support, the government’s final decision on PIP reforms will be closely watched, both by political opponents and by the millions of individuals who depend on disability benefits for their daily lives.
