Rachel Reeves has confirmed there will be no reversal of disability benefit cuts, although she is considering adjustments to qualification criteria for personal independence payments (PIPs). She emphasized the urgency for reforming the welfare system, citing a rise in economically inactive individuals post-Covid. While initial spending plans are fully costed, there may be further tax increases in the upcoming budget. The Labour party's proposal to save £5bn annually through welfare changes has raised concerns among MPs, prompting a potential review of PIPs criteria before a vote this month.
Even with these changes we will substantially be increasing the amount of money we are paying in sickness and disability benefits during the course of this parliament.
We are reviewing the criteria to get Pips and of course we'll take into account those representations.
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