Rachel Reeves urged to scrap feared PIP cuts “that could plunge 700,000 into poverty”

Chancellor Rachel Reeves is facing mounting pressure as she prepares to deliver her Spring Statement on March 26, with warnings that proposed cuts to disability benefits could have a “catastrophic impact” on hundreds of thousands of households.

Over a dozen leading charities, including Disability Rights UK, Citizens Advice, Scope, and Sense, have written an open letter urging Reeves to protect Personal Independence Payments (PIP) and rethink any plans to reduce support for disabled people.

The charities argue that cutting disability benefits would push an estimated 700,000 households into poverty, rather than achieving the government’s stated goal of increasing employment levels.

They stress that reducing support will not incentivize work and instead call for improved systems to help disabled people find suitable employment. “Making cuts to disability benefits will not achieve this goal or fix the system,” the letter states. “In fact, there is little evidence to suggest cutting benefits increases employment outcomes.”

The charities highlight that while many disabled people want to work, they need appropriate support to do so. For others, work is not a viable option due to the nature of their disabilities. They emphasize that PIP is a “lifeline for disabled households,” often enabling people to remain in work by covering essential costs related to their conditions.

The warnings come as Reeves prepares to announce significant spending cuts in her Spring Statement, with welfare reform seen as a key area for savings. The cost of working-age sickness and disability benefits has surged by £20 billion since the pandemic and is projected to reach £70 billion over the next five years. Work and Pensions Secretary Liz Kendall has pointed out that 2.8 million people are out of work due to ill health, and one in eight young people are not in education, training, or employment.

Kendall has promised that an upcoming Health and Disability Green Paper will outline plans to help those who can work return to jobs, rather than “writing them off.” However, the charities argue that cutting benefits is not the solution. They urge the government to focus on fixing the “broken” benefits system and providing the necessary support to help disabled people thrive.

A government spokesperson defended the proposed reforms, stating that the current welfare system is unsustainable and must change to support people into work while reducing the benefits bill. “Without reform, more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it’s bad for people, too,” the spokesperson said. “We have a duty to get the welfare bill on a more sustainable path and we will achieve that through meaningful, principled reforms rather than arbitrary cuts to spending.”

As the Spring Statement approaches, the debate over welfare reform is intensifying. Critics argue that cutting disability benefits would harm some of the most vulnerable in society, while the government insists that reforms are necessary to create a fairer and more sustainable system. With borrowing costs rising and economic growth stagnating, Reeves faces a difficult balancing act as she seeks to address the UK’s fiscal challenges without exacerbating poverty and inequality.

The charities’ plea underscores the high stakes of the upcoming statement. For disabled households relying on PIP, the outcome could mean the difference between financial stability and destitution. As Reeves finalizes her plans, the question remains: will the government prioritize meaningful reform, or will it resort to cuts that could have devastating consequences for hundreds of thousands of people?