THE LABOUR government will declare war on the disabled when Chancellor Reeves returns from China this week it was reported yesterday, as the media was briefed that she intends to slash billions of pounds from disability benefits.
Senior figures in Downing Street said the Treasury is planning significant cuts to the Department for Work and Pensions (DWP) budget, with Personal Independence Payments (PIP) the target.
Reeves has instructed the Treasury to get ‘tough’ on spending by ‘unprotected departments’ in particular the DWP.
The target is the PIP payments of up to £9,600 annually received by people with disabilities and health conditions.
The Labour government is planning to impose harsher restrictions on the qualifying mental health conditions and will require ‘enhanced medical evidence’ before approving or maintaining claims.
Trade unions and disability campaigners have warned Labour that they will fight against the onslaught on vulnerable claimants which was announced by Work and Pensions Secretary Liz Kendall late last year.
Kendall has so far dismissed the threat of replacing cash payments with vouchers, but officials are known to be examining other alternatives to cash payments.
Jack Meaning, Barclays Bank’s UK chief economist, warned there is a ‘high chance’ the Chancellor is going to announce emergency spending cuts during her upcoming Spring Budget.
Last Friday saw severe market turmoil, with the interest rate on 30-year government bonds hitting its highest level since 1998.
A DWP spokesman said: ‘We don’t comment on speculation. We have been clear that the current benefits system needs reform so it is fairer on the taxpayer and people get the support they need to move into work.
‘Building on our Get Britain Working White Paper, we will bring forward proposals for reforming the health and disability benefits system in the spring.
‘This will be part of a proper plan to help disabled people who can work secure employment, while ensuring support is provided for those who need it.’
