The Chancellor of the Exchequer Rachel Reeves has told the Treasury to get “tough” on spending, the Telegraph reports.
Reeves is facing the prospect of having to cut billons to placate global markets after fears over the UK economy pushed up gilt yields making it more expensive for the government to borrow to pay for public spending and infrastructure projects. The rise in gilt yields and fears over the economy could also push up interest rates and see costs soar for UK mortgage borrowers.
Insiders in Downing Street and the Treasury said they believe significant cuts to the Department for Work and Pensions (DWP) budget were necessary and that Personal Independence Payments (PIP) were first in the firing line.
PIP payments are worth up to £9,600 annually, and help with the additional costs faced by people who have disabilities and health conditions.
They were introduced in 2013, and since then PIP claims have risen substantially. GB News reported that monthly new payments for anxiety or depressive disorders more than doubled from 2,200 in 2019 to 5,300 in 2023.
Nearly 900,000 people have had their Personal Independence Payment (PIP) stopped or reduced, according to the latest figures from the Department for Work and Pensions (DWP) earlier this month.
Data reveals that 628,000 claims have been stopped, while 264,000 claimants have seen their payments reduced following reviews over the past eight years.
The Personal Independence Payment (PIP) is a benefit for people who are under State Pension age and who need help with daily activities or getting around because of a long-term illness or disability.
It is not based on National Insurance contributions so it is not means tested, so your savings don’t matter.
There are 2 parts to PIP:
- a daily living part – if you need help with everyday tasks
- a mobility part – if you need help with getting around
Whether you get one or both parts and how much you get depends on how difficult you find everyday tasks and getting around.
If you’re nearing the end of life (for example, due to a life-limiting illness), you’ll automatically get the daily living part. Whether you get the mobility part depends on what you need.
