DWP update marks 'death knell' for PIP voucher plan amid rise in disability benefit claims

A minister at the Department for Work and Pensions has hinted that the new Labour government will not be pressing ahead with the controversial plans to turn disability benefits into a voucher system

The controversial disability benefit reforms proposed by the previous Tory government, which would have replaced cash payments with vouchers, seem to have been scrapped, much to the relief of critics.

In a move that coincided with the government of Rishi Sunak's fatally plummeting poll numbers, the 'Modernising Support for Independent Living' green paper suggested several changes to the Personal Independence Payment (PIP) system in an effort to address what they dubbed "sick note culture". These proposals included converting the approximately £434 disability benefit into a voucher scheme for equipment and offering therapy instead of financial support.

But reforms are on their way, as, since the pandemic, there has been a 25 percent surge in PIP claimants, now totalling 3.5 million. When quizzed by MPs about when the new Labour government would release its response to the consultation on the Tory plans, disability minister Sir Stephen Timms stated: "We do not intend to publish a response to the previous Government's consultation."

This statement was interpreted by the Benefits and Work forum as the "death knell" for the PIP voucher proposal after persistent inquiries from campaigners. However, Sir Stephen Timms did emphasise that the Labour government still anticipates implementing reforms to the benefits system.

The Minister for Social Security and Disability said, "We will be considering our own plans for social security in due course and will fulfil our continued commitment to work with disabled people so that their views and voices are at the heart of all that we do."

Meanwhile, Labour has kept mum on their new welfare policies or Department for Work and Pensions (DWP) overhauls. In fact, they're playing their cards close to their chest on pretty much every cost-related policy. All eyes will be on Chancellor Rachel Reeves' maiden Budget later this month when she's expected to tackle the Tories' £22 billion economic "black hole".

Without adjusting government spending rules, a number of departments could face cuts, and it looks like the DWP's soaring benefits cost might be targeted by Reeves for cuts in routine expenditure.

Nonetheless, major changes seem to be on the way, as indicated by the minister. But when pressed further, he said: "We will consider the potential impacts of reform on disabled people."