Full list of DWP benefits cuts Labour could announce today from PIP to Universal Credit

The Labour Government is poised to unveil its welfare reform strategy today (March 18), which is anticipated to encompass £6 billion in benefits reductions. This announcement comes just before Rachel Reeves delivers her spring statement next week, with the Government aiming to encourage millions of individuals on sickness benefits to re-enter the workforce.

However, numerous leading charities have cautioned that such cuts could drive an additional 700,000 households into poverty. Despite this concern, five Scottish Labour MPs have expressed their support for the Government's reform plans in a signed letter, although some members have reportedly voiced their discontent in private.

Among the potential targets for cuts is the Personal Independence Payment (PIP), with ministers allegedly planning to slash up to £6 billion from the welfare budget by altering PIP benefits. This fund, designed to assist those both employed and unemployed, provides financial aid for extra living and mobility expenses associated with disabilities.

Leaked details of the proposals indicate intentions to tighten eligibility criteria for these payments, a move charities have warned could be "catastrophic". There are also rumours of a possible freeze on payments next year, preventing them from rising with inflation.

The magnitude of the proposed changes is significant. According to the Resolution Foundation's estimates, achieving a £4 billion reduction in PIP expenditure by 2029/30 would necessitate at least 630,000 fewer recipients or a 15% real-terms decrease in the value of the benefit over the same timeframe, reports the Daily Record.

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It is understood that government ministers have dismissed the idea of substituting the benefit with vouchers, an idea once suggested by the Conservatives under former PM Rishi Sunak.

Regarding Universal Credit alterations, the state is reportedly contemplating increasing the basic rate paid to individuals either in work or seeking employment. At present, this stands at just over £311 a month for singles aged 25 and over.

Furthermore, Liz Kendall, the Work and Pensions Secretary, is looking to invest close to a billion pounds into job support services for those on the hunt for work.

Last month, she argued that "despite all the myths a lot of people who are currently on sickness or disability benefits want to work", despite concerns that there are also intentions to reduce the benefit rates for those unable to work due to illness or disability.

Concerning reforms to Work Capability Assessments (WCAs), ministers have pledged to re-evaluate changes to this critical disability assessment, which deduces if an individual with a health condition or disability is capable of working.

This comes after a High Court judgment in January found that a Conservative-government consultation on WCA reforms was unlawful. In the autumn of 2023, the Department for Work and Pensions (DWP) shared plans to modify the way WCAs were graded, considering options such as diminishing or omitting scores for mobility issues.

Labour has indicated that despite the court's decision, the Government "intends to deliver the full level of savings in the public finances forecasts."

The extent of any potential savings might be detailed by the Office for Budget Responsibility during the Spring Statement, due in a fortnight.