The Resolution Foundation think-tank estimated that the government’s proposed changes to the benefit system will leave as many as 1.2 million people £4,300 a year worse off by 2029.
Changes in eligibility
The changes will make it harder for those claiming personal independence payments (PIP) and incapacity benefits but will not affect housing support. Only those with significant difficulties in performing daily tasks will qualify for the daily living payment under the new PIP assessment. Many needing help with washing or using the toilet may no longer be eligible. Changes to incapacity benefits, known as universal credit health, mean the £5,300 annual benefit will only be paid to those who receive the PIP daily living payment.
Trapped on benefits
Ministers claim reforms are necessary to help people on benefits return to work. The government needs the £5bn annual savings to keep Chancellor Rachel Reeves within fiscal rules set to be referred to in tomorrow’s Spring Statement.
Impact of the changes
Many charity leaders are pointing out that many claimants already struggle to afford the essentials, and the cuts will penalise those with major conditions such as psychosis and amputations. Over half current claimants aged 40 and above will be worse off after the reforms as will between two-thirds and almost three quarters of those suffering from severe pain, analysis suggests.
Tough job market
Claimants must seek work to receive jobseekers’ benefits, despite the challenging job market for low earners. Sectors such as hospitality and retail, which are normally the first sectors people on welfare look for work, will be hardest hit by the changes in employer national insurance contributions taking effect in April.
Spare a thought
While there may be some clear logic to the changes the government intends to make, spare a thought for those who will be hit hardest.
