UPDATE: |Concerns over DWP benefit reforms spark inquiry as 3 million face losing support News

The Work and Pensions Committee has announced it will launch an inquiry on the government’s welfare reform proposals

The Work and Pensions Committee has initiated a fresh inquiry into Labour’s welfare reform proposals, detailed in the Pathways to Work Green Paper. This cross-party group of MPs will scrutinise the Department for Work and Pensions’ (DWP) proposed alterations to disability and health-related benefits, which were unveiled by Work and Pensions Secretary Liz Kendall on March 18.

The suggested changes focus on both the eligibility criteria for and the reduced payment rates of benefits. They also include plans to scrap the Work Capability Assessment (WCA), meaning the new Personal Independence Payment (PIP) assessment would determine eligibility for PIP and the health element of Universal Credit.

The proposed eligibility modifications for PIP are projected to impact between 800,000 and 1.2 million current recipients of the benefit. The DWP’s impact assessment estimates that 370,000 claimants will lose their entitlement and payments.

Under the revamped system, to qualify for Universal Credit health elements, an individual would need to be receiving the daily living component of PIP. However, the eligibility for this PIP component is being tightened.

Starting from November 2026, only those who score at least four points in at least one of the daily living activities, along with at least four points accumulated from any of the other health questionnaire responses contained in the PIP 2 evidence form, giving an overall total of eight points, will qualify for the standard rate of PIP.

Twelve points or more are required to qualify for the enhanced rate of support, reports the Daily Record. The reduction in real terms support, affecting an estimated 1.5 million existing claimants, has been brought to attention by the Work and Pensions Committee.

In the recently published Green Paper, plans have been laid out that, according to the Secretary of State, could potentially save £5 billion by the year 2029/30. The UK Government asserts that the reforms, backed by a £1 billion employment support package by the same year, are designed to help a greater number of individuals with long-term health conditions or disabilities return to work or maintain their jobs.

The scrutiny into how welfare changes might influence poverty rates, job prospects, and particularly impact those who are disabled, is at the heart of an inquiry that will examine ties between health issues and unemployment.

Debbie Abrahams, who chairs the Work and Pensions Committee, expressed conditional concern about the fiscal measures: “While the Chancellor undoubtedly must respond to financial challenges, there are legitimate concerns regarding the proposed changes to our social security system which would lead to a cut in support for more than three million sick and disabled people and their families, especially if these cuts happen before employment opportunities emerge.

“It is therefore vital that there is full examination of the evidence of the likely impacts this will have on poverty and employment, as well as the health of sick and disabled people.

“Our social security system is meant to provide a safety net to support people, so that they are protected from poverty. But we know that there are already 14.3 million people living in poverty, and half of them are sick or disabled people who are not properly supported by our benefits system. We must ensure that the new social security policy addresses this.”

Scope of Inquiry

The Committee is not putting out a call for evidence, but the terms of reference are:

• to explore the issues with the social security system the Green Paper is seeking to address
• to explore the evidence of the impacts of welfare changes on poverty and employment
• to explore the experience of sick and disabled people of the current welfare system and their views on the impacts the changes could have on them
• to explore the link between health status and worklessness, and the potential impacts of the welfare changes on health status

It’s also worth noting that the former chair of the Work and Pensions Committee, Sir Stephen Timms, is now the Minister for Social Security and Disabilities.