While ministers argue that their actions will save the public purse £5bn over the next five years, critics contend that this sum does not take account to the full picture.
Ministers have also been criticised for delaying the publication of an official impact assessment until next week’s Spring Statement, leaving many organisations scrambling to understand what these changes will mean for the vulnerable people they support.
Dan Paskins, director of UK impact at Save the Children, said it was “revealing” that there wasn’t an impact assessment and suggested there may be some “unpleasant details” when one is published.
David Finch, assistant director at the Health Foundation, has expressed concern over these changes. “Cutting benefit entitlements by reforming PIP eligibility and reducing entitlements for new Universal Credit health claims will leave vulnerable people worse off and risks making it harder for people with health conditions to move into work.”
Pressure on health services
Many campaigners have warned that restricting disability benefits could have unintended consequences for the healthcare system. The NHS is already under immense strain, and reducing financial support for disabled individuals may exacerbate health issues, increasing demand for medical services.
Additionally, GPs are likely to see an increased workload as claimants seek further medical documentation from doctors to support their benefit claims. A 2024 survey by the Royal College of General Practitioners, published by The BMJ, found that 30 per cent of GPs were already spending up to a third of their time on administrative tasks related to benefits and housing applications. These additional pressures could divert resources away from frontline patient care.
Tom Pollard of the NEF warned: “You’re taking money out of the pockets of people in the poorest households in the poorest parts of the country, and those people have a high marginal propensity to spend. If you give money to poor households, they spend it in the local economy.
Businesses are already facing financial difficulties due to rising National Insurance Contributions (NICs) and other economic pressures, and there are concerns that a decline in consumer spending could further exacerbate financial instability in struggling communities.
Pushing families into poverty could mean another generation relying on state support
Dan Paskins, director of UK impact at Save the Children, has highlighted concerns that restricting PIP and incapacity benefits will leave families struggling to make ends meet. He noted that “the intersection between people who receive disability benefits and people raising a family obviously hasn’t yet had a lot of sort of detailed scrutiny.”
“It has a knock-on impact on children who are less likely to get opportunities at school and therefore get good grades. These things aren’t captured in the way that the government measures costs,” Paskins added.
Beyond the immediate impact of the proposed cuts, some experts warn that structural weaknesses in the benefits system will be further exposed.
“Due to the local housing allowance freeze, benefit cap, two-child limit, and debt deductions, many Universal Credit recipients get less than the standard amounts that people are expected to live on,” she said. “For many people, PIP has filled the gaps in income created by these policies.”
The Government’s defence
The Government insists that these reforms are necessary to encourage more people into work, arguing that they will ultimately lead to better health and economic outcomes.
“Our reforms are guided by three principles,” he wrote in The Times. “First, if you can work, you should. Second, if you want to work, the Government should support you to make that a reality. Third, if you will never be able to work because of your illness or disability, the state should help you to get by with security, dignity and respect.
However, with mounting criticism from economists, healthcare professionals, and advocacy groups, the full impact of these changes remains uncertain.
As the Government moves forward with its cost-cutting agenda, the coming months will determine both whether these measures yield the intended benefits and whether they create a new of problems.
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