Government DWP PIP 'freeze' plan as minister gives update

A senior minister has declined to be drawn on whether the Government will freeze personal independence payment (PIP) as uncertainty continues to surround Labour’s upcoming welfare reforms. Work and Pensions Secretary Liz Kendall is expected to announce reforms on Tuesday aimed at cutting a welfare bill that ministers have described as “unsustainable”.

Ahead of the announcement, speculation has mounted that PIP – the main benefit for working-age adults – could be frozen rather than increased in line with inflation, delivering a real-terms cut for 3.6 million claimants. But on Sunday, reports suggested the Government is considering reversing course on PIP in the face of opposition from Labour MPs and division in the Cabinet.

Asked about the speculation on Sunday, Health Secretary Wes Streeting said he has not yet seen the full proposals, but is sure Ms Kendall “wants to support people who need help the most” and will “make sure that there is a wide range of support”.

He told the BBC’s Sunday With Laura Kuenssberg: “I haven’t seen the proposals but you’ve seen the briefing, you’ve seen the speculation, I think the moral of the story is wait for the plans.” During his interview, Mr Streeting also said he believes there is an “overdiagnosis” of mental health conditions leading to “too many people being written off” as unable to work.

Host Laura said the projected spend on Department for Work and Pensions was set to soar: “Huge projections so you can see from those numbers why the government might want to tackle the bill, but it’s not necessarily going to be easy. Health Secretary is it. As a Labour politician, did you get into politics in order to take money from some of the poorest and most vulnerable people in society?”

Mr Streeting replied: “We don’t want to take money from the poorest in society. We want to support people. Who are the poorest and most vulnerable to make sure they’ve got dignity, independence and great quality of life. I’m in many respects a product of the welfare system and a product of what an effective state could be.

“When I was growing up, the welfare system put food in the fridge and money in the electric meter. We had a council house and a state education gave me every opportunity to be now sat in front of you today as a government minister responsible for our NHS and social care services, so.without that support from an active state, I wouldn’t be here talking to you, so I get all of that.”

He added that the bill for people unable to work for health reasons was unsupportable: “The challenge we’ve got though, and it speaks to the point James was just making about the scale of the challenge in the country. We’ve got 1 in 8 young people in this country, not in education, employment, or in training.

“We’ve got 1 in 10 people who are off work sick and 3 million people shut out of the labour market. Because of long term illness. Now, of course there will be some people who because of serious disability, or because of chronic illness that can’t be turned around, will not be able to work, and those people need to be supported. But, but the welfare state’s also got to be a springboard back to work and lots of people get written off, you know, as if they can’t contribute when they, they can and should and want to.”

Campaigners have urged the Government not to cut PIP, saying it would only serve to push disabled people into poverty. A PIP recipient with multiple sclerosis told the MS Society the prospect of cuts “scares the hell out of me”.

They added: “Even with my husband’s income and my PIP payments, our finances just disappear each month. “My MS means I have extra costs like taking supplements and accessing different therapies which can be expensive. Alongside that, our day-to-day living costs are increasing.”

The SNP has also attacked the Government, saying Sir Keir Starmer should “apologise” to disabled people for “allowing damaging speculation to run wild”.

Kirsty Blackman, the party’s work and pensions spokeswoman, said any planned cuts to disability payments should be “abandoned” and she accused Labour of “deliberately fuelling speculation” in the media about its intentions.

Meanwhile, Ms Kendall is expected to attempt to reassure people receiving disability benefits by introducing a “right to try guarantee” that will allow them to take up work without necessarily losing their entitlements.

The move is said to be in response to surveys suggesting disabled people and those with long-term health conditions fear they will not get their benefits back if they try employment but it does not work out.

A Government source said: “The broken welfare system we inherited is trapping thousands of people in a life on benefits with no means of support, or any hope for a future of life in work. It doesn’t account for the reality of people’s health conditions, many of whom fear that they will be punished for taking a chance on work.

“As part of our plan for change, our reforms will deliver fairness and opportunity for disabled people, and those with long-term health conditions, protecting the welfare system so it is sustainable for the future and will always be there for those who need it.”