Britain’s benefits system faces collapse without cuts to disability payments, Liz Kendall has said, as the government published plans that put it ona collision course with dozens of angry Labour MPs.
Kendall published her welfare reform bill on Wednesday, confirming it would lead to benefit cuts for 950,000 people by 2030. She said the country’s £326bn social security net might cease to exist if costs continued to escalate.
The bill includesseveral concessionsdesigned to win over fractious Labour MPs as ministers look to ward off the biggest rebellion of Keir Starmer’s premiership. But the efforts were met with hostility by many in the party, who said they still intended to vote against the bill next month.
Kendall said: “Our social security system is at a crossroads. Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.
“This will give people peace of mind, while also fixing our broken social security system so it supports those who can work to do so while protecting those who cannot – putting welfare spending on a more sustainable path to unlock growth.”
The bill will cut personal independence payments (Pips) for more than 800,000 people with disabilities, as well as carers’ support for 150,000 people who care for them. Claimants only able to wash half of their body or who are unable to cook a meal for themselves will no longer be able to claim Pips unless they have another limiting condition.
The cuts are at the heart of an overall package of nearly £5bn in welfare savings whichministers argueare necessary to protect the financial sustainability of the benefits system.
Kendall has tried to dispel widespread anger in theLabourparty over the plans by introducing new concessions. Under the terms of the bill, people losing their disability benefits will get additional financial support for 13 weeks, while those with severe conditions such as heart disease or spinal injuries will not have to face reassessments.
The work and pensions secretary has set out a separate £1bn plan to help unemployed people get back to work, but this is not related to Pips, which are unconnected to employment status.
Whips are also issuing threats, and the deputy prime minister, Angela Rayner,refused on Wednesday to rule outthe possibility of suspending any Labour rebels when the bill is put to a vote next month.
The mixture of concessions and threats did not appear to have won over wavering Labour MPs, however, and many went public with their criticism after the bill was published.
Rachael Maskell, the MP for York Central, said: “Having read the bill, it is clear that disabled people will lose significant support.
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“The explanatory notes set out that 800,000 will not receive the daily living component of Pip by 2029/2030 and 150,000 will also lose their carers allowance. Poverty will be the legacy of this bill.”
Andy McDonald, the MP for Middlesbrough and Thornaby East, said the bill was “a huge attack on the incomes of disabled people”.
“MPs are being expected to vote these through whilst the green paper consultation continues, before the Pip assessment review is conducted, and without any evidence the separate employment support package – which is not in this bill – will work.
“This bill will be a yes or no on impoverishing disabled people. It’s a no from me.”
Those feelings were echoed by disability campaign groups and charities.
James Taylor, the director of strategy at the disability equality charity Scope said: “This bill will be catastrophic for disabled people. Cutting benefits will plunge hundreds of thousands into poverty. Over 800,000 will lose at least some financial support from Pip.
“It will have a devastating effect on disabled people’s health, ability to live independently or work.”