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Rachel Reeves dropped more hints Welfare cuts likely She is looking forward to her second autumn budget under this Labor government.
The Chancellor has hinted that more tax rises and spending cuts can be expected in the fiscal event, as analysis from the prestigious Institute for Fiscal Studies (IFS) suggests the Treasury will need. Find at least £22 billion To deal with weak economic growth.
Asked on Channel 4 News about changes to the benefits system, the Chancellor said: “We can’t leave welfare untouched,” adding: “We can’t get to the end of this parliamentary session and have done basically nothing… We have to reform in the right way and take people on board.”
The government was forced to abandon £4 billion in proposed cuts to disability benefits in July after Labor MPs launched a revolt against the plans.
While some changes universal credit Although these rules are still scheduled to come into effect in April, they are unlikely to result in any major savings.
This means Ms Reeves could choose to announce further changes to welfare system in the Budget on November 26, as it seeks to raise funds for the exchequer.
The government is also expected to publish its ‘Getting to Work’ white paper in the autumn based on some of the other measures outlined in its controversial green paper – which first put it forward. cut – in March.
Here are some options Labor Considerations for this budget and beyond may include:
mobility reduction
Ahead of the Budget, it emerged the Chancellor is reportedly planning to save £1 billion Restricting disabled people’s access to cars Through mobility scheme.
This is a government-backed program that enables people with severe disabilities to get a car by using their share benefits Paying for the lease. It is open to people who claim qualifying mobility allowance, usually through Personal Independence Payment (pip,
The scheme provides cars to approximately 815,000 users, including approximately 40,000 luxury vehicles.
Whitehall sources have indicated that changes to eligibility for the scheme are unlikely, but elimination of VAT and insurance premium tax breaks is possible. Another change under consideration is to eliminate luxury brands, which make up five percent of Motability cars.
Disability charities have reacted negatively to the proposals. James Taylor, director of strategy at the charity Scope, said it could “impose additional costs on disabled people across the UK”.
universal credit health age restrictions
In its green paper on the way to work, the government said it is consulting on increasing the minimum age for people who are eligible for additional Universal Credit payments if they have a health condition or disability that limits their ability to work.
The consultation will suggest that only people over the age of 22 will be able to apply for this “health top-up” to encourage young people to get back into work.
Former Work and Pensions Secretary Liz Kendall said the measure was intended to prevent under-22s from being disadvantaged by employment, combined with Labour’s focus on “breaking down barriers to opportunity” for young people.
According to the paper, the savings from this will be “reinvested in work support and training opportunities” for youth.
More than 110,000 young people aged 18 to 21 were claiming the health element of Universal Credit in June, according to the latest government figures.
Disability Benefits Assessment Overhaul
Changes to disability benefit assessments are still to be implemented as the government presses ahead with a plan that will slash £5 billion from the welfare bill by 2028-2029.
Labor has confirmed it will continue proposals announced by the previous Conservative administration to reform work capability assessments in 2023, significantly changing the eligibility criteria.
This is the assessment that decides whether the applicant can receive the health-related element of Universal Credit, and whether they need to look for work. According to research from the Office for Budget Responsibility, the changes would mean about 450,000 fewer people considered with limited capacity for work.
Instead of a work capacity assessment, all claimants will be assessed through the current PIP assessment. This has drawn criticism from politicians and campaigners, as rejection rates for PIP assessments – which are outsourced to private companies – have been high in recent years.
In July suspended Labor MP Rachel Maskell, leader of a revolt against Labour’s welfare cuts, said: “Disabled people should only be required to attend an assessment to find out the level of social security they should receive.”
he told big issue Earlier this month: “However, scrapping the work capacity assessment without ensuring that there is a broader and more inclusive assessment process for the health element of Universal Credit in the assessment for PIP may provide no support to people.”
pip review
During its damaging back-and-forth over changes to health benefits, the government announced it would launch a review of PIP led by experienced people. Labor MP Sir Stephen Timms.
Currently claimed by 3.7 million people, PIP is designed to help with the extra costs incurred when living with an illness or disability. Labour’s proposals to change the assessment criteria for benefits, which would effectively make it harder to claim, have faced intense opposition from campaign groups and donors.
Sir Stephen said that the aim of the review “is not to make cuts”, but that “certainly it has to work within the current estimates of how much is going to be spent”.
The review is not due to finish until autumn 2026, meaning any changes recommended in the meantime will not affect claimants. The Government has confirmed that this will include a “comprehensive” review of the PIP assessment.
Combined with the upcoming White Paper, this could mean even bigger changes to disability benefits in the coming years.