Reform has unveiled a £50 billion proposal to reduce the welfare bill, focusing on significant changes to disability payments affecting millions. The policy, outlined by Reform’s leader Michael Jenrick, aims to shift support from direct cash payments to alternative services such as therapy, physiotherapy, and employment assistance. This shift is intended to reduce reliance on Universal Credit (UC) and Personal Independence Payment (Pip) for individuals with long-term health conditions. The plan suggests that individuals with “low-level” disabilities will no longer receive cash payments. Instead, local authorities and mayors will manage support, providing essential services like transportation and equipment. Employers will be encouraged to reintegrate employees returning from sickness through a new “return to work cover,” offering them an economic incentive to facilitate reemployment. Claimants who have not returned to work within two years will undergo a “single, rigorous disability needs assessment.” This assessment, conducted in person, is designed to identify fraudulent claims and ensure resources go to those most in need. Those deemed “gravely ill and severely challenged” will continue to receive regular, reviewed payments. According to Jenrick, after assessing existing claimants, approximately 2.16 million will retain their full cash entitlement, while 2.89 million will see modifications or reductions. Pip, which supports 3.7 million people in England and Wales with long-term physical or mental health conditions, is not tied to savings or income and does not impact other benefits or the benefit cap. Claimants may qualify for either the daily living component or the mobility component of Pip. Jenrick acknowledged the challenges of implementing these changes, stating that “dumping our young people onto welfare isn’t compassion; it’s neglect.” He criticized previous Conservative Party proposals as “paper thin,” asserting that his party’s plan would generate savings exceeding twice the £23 billion proposed by Kemi Badenoch’s party. Labour responded by dismissing the £50 billion figure as “fantasy economics,” arguing that Reform’s plan risks removing vital support from disabled individuals and shifting costs onto employers. A Labour spokesperson noted that the government’s recent welfare reforms offer “credible, independently-costed savings.” In March 2025, the government attempted to tighten daily living assessments for both current and future claimants, but faced backlash from Labour MPs, prompting a rollback. Jenrick called this effort a “modest savings” initiative undermined by backbenchers. Sir Stephen Timms, the Disability Minister, has led a review of Pip, concluding that the benefit is “not fit for purpose” and requiring substantial reform. Recent changes to UC reduced the health element for new claimants with less severe conditions by half. Additionally, the government has moved to remove Pip from automatic exemptions under the household benefit cap, aiming to secure annual savings of at least £1 billion. The Good Growth Foundation, aligned with Labour, released findings indicating that nearly half of benefit claimants would trade up to £1,000 annually in cash for services like therapy or healthy meals. The think tank’s survey of 1,000 claimants revealed that 49% would exchange at least £20 weekly for services, with 31% willing to give up £50 weekly, equivalent to £2,600 yearly. Younger claimants, particularly those aged 16 to 34, showed greater interest in employment-focused services. With four million people now claiming Pip, the cost of the benefit is projected to exceed £41 billion by the end of the decade. The foundation proposed that the Department for Work and Pensions introduce a voluntary menu of services, enabling claimants to exchange part of their benefits for state-procured support at below-market rates. Such a model could yield substantial annual savings.
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