Tower Hamlets has one of the largest Bangladeshi communities in the UK. According to the 2021 census data, Bangladeshi is the largest ethnic group in this borough.
More than 15,000 residents in Tower Hamlets are expected to have their disability benefits frozen as the Government prepares to introduce welfare reforms, according to new figures.
The Department for Work and Pensions (DWP) is reportedly set to announce potential benefit reductions totaling £6 billion, as outlined in proposals obtained by ITV News last week. These changes are aimed at encouraging more disability benefit recipients to enter the workforce by tightening the eligibility criteria for Personal Independence Payments (PIP), which will also not increase with inflation next year.
PIP, a non-means-tested benefit, helps cover additional costs related to long-term disabilities, serious health conditions, or terminal illnesses. Unlike out-of-work benefits, PIP is designed to support those with extra living expenses due to disability.
Analysis from RADAR based on the latest DWP data shows that as of October last year, 16,915 individuals in Tower Hamlets were receiving PIP—a 90% rise from 8,900 in 2019. Across England and Wales, the number of claimants grew from 2.1 million in 2019 to 3.6 million in 2023.
Mikey Erhardt, a campaigner at Disability Rights UK, criticized the proposed reforms, warning that they would worsen health conditions, diminish people's quality of life, and create further obstacles to employment and social inclusion. He argued that the Government is wrongly focusing on "the symptoms of a sick and broken society" rather than addressing its root causes.
Erhardt described the potential freeze on PIP as devastating, especially since disabled people are among the hardest hit by rising costs of essentials such as energy, housing, food, and transport. He noted that PIP is already considered insufficient and questioned why the Government is prioritizing cuts when disabled individuals face an average of £1,000 in extra living costs each month compared to non-disabled people.
PIP consists of two components: a daily living rate and a mobility rate. Claimants may qualify for one or both. The current standard daily living rate is £72.65, with an enhanced rate of £108.55. The mobility rate is set at £28.70 for the standard level and £75.75 for the enhanced level.
In Tower Hamlets, 55% of daily living claimants receive the enhanced rate, while 63% of those claiming mobility payments are on the higher rate.
James Taylor, the executive director of strategy at a leading disability charity, pointed out that the cost of living has surged over the past three years, with energy prices set to rise again in April. He emphasized that PIP exists to offset the additional costs of living with a disability, which will not disappear simply because benefits are frozen.
He further highlighted that many disabled individuals rely on PIP for work-related transportation and essential mobility aids, warning that cutting support will only drive more people into poverty rather than employment.
A DWP spokesperson defended the proposed changes, arguing that the current welfare system is ineffective and requires reform to assist those with long-term health conditions in finding work. They stated that the reforms are intended to ensure people receive necessary support while also being fair to taxpayers.
"Without reform, more individuals will remain excluded from employment despite many wanting to work. That is not just detrimental to the economy, but also to individuals themselves," the spokesperson said.
They added that the Government’s Plan for Change aims to introduce measures to help achieve an 80% employment rate.