The Department for Work and Pensions (DWP) has been instructed to remove benefit payments from an estimated 1.1 million people as part of a major new welfare crackdown.
Spiralling Welfare Costs Prompt Action
This move comes amid growing concerns that the UK's welfare system is spiralling out of control. New data from the Centre for Social Justice (CSJ) reveals that spending on benefits, including Personal Independence Payment (PIP) and Universal Credit Health, is projected to surge from £49.6 billion in 2024 to an estimated £76.8 billion by 2030.
The scale of this increase has triggered a significant political and policy response, with the government launching a comprehensive review to address the sustainability of the system.
The Timms Review and Its Recommendations
Central to this crackdown is the Timms Review of disability benefits. The review's terms of reference, published recently, confirm it will operate within the Office for Budget Responsibility's (OBR) projections for future PIP expenditure.
The key recommendations from the review include:
- Withdrawing Universal Credit Health and Personal Independence Payment from individuals with milder conditions.
- Focusing on conditions such as anxiety, depression, or ADHD where the impact is considered less severe.
- This change is estimated to affect approximately 1.1 million people currently claiming these benefits.
Political Fallout and the Road to Reform
The proposed changes have ignited a fierce political debate. Conservative Party Shadow Chancellor Sir Mel Stride has accused the Labour government of "planning for failure" by not implementing welfare savings sooner.
He stated, "Taxes are going up to pay for higher welfare spending, thanks to Labour’s weak leadership." Stride further emphasised the need for urgent reform, adding, "Every person on benefits who could be in work is a travesty – for them, for our economy and for taxpayers."
The Conservatives have claimed that their proposed reforms would reduce the benefits bill by £23 billion, a measure they argue is essential to avoid tax rises and boost employment.
In response, a spokesperson for the Department for Work and Pensions defended the government's approach: "We want a welfare state that is there for those who need it and supports people into work, while delivering fairness to the taxpayer. That’s why we’ve launched the Timms Review to make sure PIP is fair and fit for the future."
The spokesperson concluded by highlighting a broader shift in policy, stating the government is moving its focus from welfare to work, skills, and opportunities as part of a long-term plan for change.
