Rachel Reeves urged to scrap feared PIP cuts | | European Markets

Chancellor Rachel Reeves has been warned that slashing incapacity advantages might have a “catastrophic impact” on a whole lot of hundreds of households, as main charities sound the alarm over welfare reforms.

Extra than a dozen organisations, together with Incapacity Rights UK, Residents Recommendation, Scope, and Sense, have written an open letter urging Ms Reeves to “safeguard” Private Independence Funds (PIP) in her upcoming spring assertion on March 26.

They warning that any cuts would drive 700,000 disabled households into poverty, slightly than rising employment ranges because the Authorities claims.

The charities insist that decreasing help won’t incentivise work and as an alternative advocate for improved systems to help disabled people discover appropriate employment.

“We agree with the Government’s ambition to support more disabled people into work. However, making cuts to disability benefits will not achieve this goal or fix the system,” they mentioned.

“In fact, there is little evidence to suggest cutting benefits increases employment outcomes. We know the benefits system is broken and needs reform.”

They burdened that whereas many disabled people need to work, they require acceptable help. For others, work merely isn’t a viable option.

Spending Cuts Loom as Reeves Prepares Assertion

With borrowing prices hovering and financial growth stagnating, Ms Reeves is predicted to announce vital spending cuts later this month. Welfare reform is seen as a key space for potential financial savings.

Work and Pensions Secretary Liz Kendall has highlighted that 2.8 million people are out of work as a consequence of ailing health, and that one in eight younger people should not in training, coaching, or employment.

The fee of working-age illness and incapacity advantages has surged by £20 billion for the reason that pandemic and is projected to hit £70 billion over the subsequent 5 years.

Ms Kendall has insisted that an upcoming Well being and Incapacity Inexperienced Paper will set out plans to help those that can work back into jobs, slightly than “write them off.”

However the charities – additionally together with the MS Society, mental health charity Thoughts, Trussell Belief food banks, and Parkinson’s UK – have urged Ms Reeves to “think again about cuts to disability benefits.”

They emphasised the significance of PIP as a “lifeline for disabled households” that usually allows people to stay in work.

A Authorities spokesperson defended the reforms, arguing that the present welfare system is “broken” and should change to help people into work whereas decreasing the advantages invoice.

“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 mentioned.

“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. That’s why, as part of our Plan for Change, we will bring forward proposals shortly to unlock work and help us reach our ambition of an 80 per cent employment rate.”