Time running out for consultation, Labour Party remains silent

When it comes to disability benefits, Labour’s Department for Work and Pensions (DWP) doesn’t appear to have changed much from its ruthless predecessor, particularly when it comes to Personal Independence Payment (PIP). There is just a week left before a consultation on controversial changes to disability benefits closes. Alarming proposals introduced by the previous Conservative government include plans to replace PIP with a voucher or catalogue system.

Furthermore, these plans risk shifting the burden of DWP PIP ‘cuts’ onto new claimants or those facing an end-of-payment reassessment. Despite all this, the new Labour government has not ruled out implementing these reforms. Instead, it plans to review the consultation responses. Understandably, this leaves disabled people concerned that the new Labour-led government may follow through with these reckless and damaging proposals.

Disability Benefit Reforms – DWP PIP Consultation Closes Soon

On 22 July, a public consultation on possible reforms to the PIP will close.

Under the previous Conservative government, the DWP had launched plans to overhaul the benefits system. In the case of PIP, the then Conservative-led department had put forward proposals to reduce the number of claimants and implement new alternatives that were supposed to reduce costs.

Significantly, this includes Sunak’s notorious plans to replace disability benefit with a voucher system. Canaries Rachel Charlton-Dailey explained in April why this idea is so dangerous and shameful. She wrote:

This is such a horrible idea that I can’t even begin to express how cruel it would be. For starters, it removes the “independence” part of PIP, because it takes away our financial independence.

Vouchers would limit spending. Would they be accepted in all stores? How much would they be? Would they only be for helping us – such as mobility aids or care – or would they also be used to pay for food and bills?

Will taxis accept them? What about carers and people we hire to help us, like cleaners? Can I pay for my prescription fee exemption certificate with vouchers?

In addition to the voucher scheme proposal, the DWP has proposed equally ill-advised and restrictive options. These include a catalogue or shop system with approved items. It has also suggested a receipt-based system.

As Charlton-Dailey pointed out, the DWP PIP ideas are completely unworkable because they do not take into account the needs or living conditions of disabled people. For example, the receipt-based system relies on a functioning department and also assumes that disabled people are able to pay the fees in advance. So, as she pointed out:

This bill will force disabled people to take out loans and join “buy now, pay later” programs. It will push us deeper into debt – and you can be sure you won’t get it back, plus interest.

By proposing to send receipts to the government to get the money back, he is treating our essential goods and services as expenses.

Labour is already on the ‘back to work’ bandwagon

Meanwhile, in June, the Institute for Fiscal Studies (IFS) analysed the potential impacts of the DWP’s PIP reforms. The IFS said that the cuts to welfare benefits resulting from the proposals would mean:

many people lose large amounts of money.

Specifically, the report explained that the burden of this measure would fall largely on new claimants and those who need to be reassessed. Therefore, in terms of existing claimants, disabled people and people with chronic conditions who are receiving short-term fixed benefits would be most affected by these changes.

A coalition of disability rights groups has therefore urged the new DWP chief, Labour’s Liz Kendall, to abandon these reforms. In an open letter, they explained to the new DWP secretary how the proposals:

condemning seriously ill and disabled people to a life of poverty and the threat of sanctions.

On the other hand, Kendall and the Labour Party appear to be thinking about reforms regardless. Mirror reported on July 8:

Labour insiders have suggested they will consider the public’s response to the proposals after the consultation closes on July 22, three weeks after the election.

In short, Labour has failed to reassure disabled people that it will abandon the Tories’ callous PIP plans for the DWP. Moreover, it is in the context of this ongoing consultation that Kendall has announced the new government’s ‘Back to Work Plan’.

On 11 July, Kendall visited Leeds and gave a speech on so-called “economic inactivity”. In this speech, she set out the government’s position that:

The increasing levels of economic inactivity are unacceptable and immediate action must be taken.

She highlighted that 2.8 million people are unable to work due to long-term illness. She also explained how:

It is not enough that the UK is the only G7 country whose employment has not returned to pre-pandemic levels.

While Kendall suggested that Labour would “address the root causes”, disabled and chronically ill people took note of the hostile rhetoric, with Kendall stating that:

Economic inactivity is holding Britain back: it is bad for people, bad for businesses and bad for growth.

Labour intends to carefully consider the responses to the consultation. It is therefore essential that disabled and chronically ill jobseekers send a strong message that the new proposals must be scrapped. However, the new government has already begun its term by demonising and ignoring the demands of disabled people. Time will tell whether it will actually address their concerns. So far, the start has not been promising.

Main image via Canary