The controversial disability benefit reforms proposed by the previous Tory administration, which would have replaced cash payments with vouchers, seem to have been quietly scrapped by Labour.
In a move coinciding with plummeting approval ratings for Rishi Sunak‘s government and the Conservative party, the ‘Modernising Support for Independent Living’ green paper suggested several alterations to the Personal Independence Payment (PIP) system in an effort to address the spiralling costs attributed to what has been dubbed the “sick note culture”. These proposals included converting the approximately £434 disability benefit into a voucher scheme for equipment and offering therapy as an alternative to financial support.
Since the pandemic, there has been a 25% surge in PIP claimants, now totalling 3.5 million, with mental health claims seeing a significant rise. When quizzed by MPs about when the new Labour government would issue a reply to the consultation on the Conservative plans, disability minister Sir Stephen Timms declared: “We do not intend to publish a response to the previous Government’s consultation.”
This statement was hailed by the Benefits and Work forum as the final nail in the coffin for the PIP voucher initiative after persistent inquiries from activists. However, Sir Stephen Timms also made it clear that Labour still envisages reforms to the benefits system.
The Minister for Social Security and Disability continued: “We will be considering our own plans for social security in due course and will fulfill our continued commitment to work with disabled people so that their views and voices are at the heart of all that we do.”
Nevertheless, the Labour Party has remained tight-lipped about their planned benefit strategies or any changes to the Department for Work and Pensions (DWP), as well as their other financially impactful policies, ahead of Chancellor Rachel Reeve’s critical budget debut later this month. In the forthcoming financial exposition, the Chancellor is expected to unveil plans for confronting the daunting £22 billion deficit left by the Conservative government.
Without a change to the rules for government spending, cuts might be imminent across various departments, with the DWP‘s soaring benefit expenditure potentially targeted for reductions in daily operational costs by Reeve. Despite growing speculation on potential changes, it seems a voucher system is off the table.
Under further scrutiny, the minister asserted: “We will consider the potential impacts of reform on disabled people.”
