DWP and Labour savaged over plans to cut sickness benefits by £1.3 billion year

The proposals would involve implementing controversial changes to the “work capability assessment” that were introduced last year by then-prime minister Rishi Sunak.

The Department for Work and Pensions and new Labour Party government have been savaged over plans to change the Work Capability Assessment in a brutal blow for disabled people on benefits. Labour faces a backlash from charities over reports it plans to stick with Conservative proposals to reduce the annual welfare and sickness benefits bill by £1.3 billion.

The proposals would involve implementing controversial changes to the “work capability assessment” that were introduced last year by then-prime minister Rishi Sunak. According to research from the Department of Work and Pensions ( DWP ), the changes would mean that some 450,000-500,000 fewer people will be considered to have limited capability for work.

Helen Barnard, the director of Policy, Research, and Impact at the Foodbank charity Trussell Trust, responded to reports in the FT on the proposals, saying: “Very concerning if government goes ahead with cuts to disability benefits. This was always just cost saving.

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“500,000 disabled people get poorer - very few move to work. Not increasing opportunity or helping anyone. Just hitting a group already facing hunger and hardship.” Writing on X, she said: “If done through better support into work, better access to healthcare etc that's good. But hard to see how doing it the right way can save that much money so quickly?

“Real danger this undermines positive plans to revamp employment support and moving away from punitive sanctions.” Rachel Reeves, the Chancellor, will announce in the Budget that she will honour the Conservatives’ proposals to save the sum over four years by reforming the Work Capability Assessment.

A Government source said: “We’re not going to duck the difficult decisions to get to grips with the welfare bill.” It comes as Liz Kendall, the Work and Pensions Secretary, warned that the benefits system needs the most far-reaching reform in a generation to get millions back into work.

Ms Kendall will unveil a radical overhaul of welfare in a major white paper to be published close to the Budget.