- Overhaul targets £5B savings by 2030, impacting 1 in 10 workers on disability benefits
- Universal credit rises 4.6% while disability assessments tighten
- 100+ charities condemn reforms as 'cruel' to non-working claimants
Britain's new Labour government unveiled sweeping welfare changes Tuesday, framing the £5 billion austerity measure as necessary to reduce economic inactivity. Work and Pensions Secretary Liz Kendall criticized the previous Conservative administration for allowing disability benefit claims to surge 40% since 2019, with 2.8 million working-age adults now receiving long-term sickness payments. The reforms introduce controversial 'work capability assessment' revisions that charities argue could strip 160,000 claimants of vital support.
While universal credit recipients gain a 4.6% payment increase - £200 annually for average households - disability advocates highlight contradictions. Mind CEO Sarah Hughes notes: 'These changes punish those awaiting cancer treatments or managing schizophrenia. Our Leeds clinic already sees 3x more benefit-related anxiety cases.' The Disability Benefits Consortium warns 690,000 individuals risk losing £400/month under new 'personal independence payment' thresholds.
International comparisons reveal stark contrasts. Germany spends 1.2% of GDP on disability support versus Britain's 2.1%, yet maintains 78% employment among disabled citizens. Labour's 'back-to-work' pilot in Yorkshire - where 18% of adults claim sickness benefits - offers free occupational therapy but requires monthly job center check-ins. Early data shows 23% participant dropouts, with local food bank usage rising 14%.
Economists question the timing as UK productivity growth stagnates at 0.3%. Institute for Fiscal Studies analyst Priya Singh contends: 'Pushing 500,000 claimants into low-wage jobs could suppress wages, saving Treasury £1.3B annually but reducing income tax receipts long-term.' With public debt at 97% of GDP, Chancellor Rachel Reeves confirms March's budget will freeze benefits beyond 2025, prioritizing what she calls 'sustainable compassion.'
