Overview

• The Labour government plans to cut £5 billion from welfare spending, focusing on tightened eligibility for Personal Independence Payment (PIP) and Universal Credit.
• Between 800,000 and 1.2 million people are projected to lose PIP benefits, with annual losses per individual estimated between £4,200 and £6,300 by the end of the decade.
• Charities report a surge in calls for help, with some individuals expressing severe distress over the proposed reforms, which they fear could lead to poverty and mental health crises.
• The government defends the cuts as necessary for economic sustainability, pledging £1 billion annually by 2029/2030 to support workforce reintegration and introducing a premium for those with severe conditions.
• An official impact assessment, expected today, will coincide with the Chancellor's Spring Statement, providing further clarity on the reforms' implications.