DWP | UK |

DWP crackdown to push '700,000 PIP claimants into poverty'

March 11, 2025
The Department for Work and Pensions has been warned that cutting £6 billion off the welfare bill with a huge shake-up of disability benefits could plunge 700,000 PIP claimants into poverty.

Concerns about "crackdown"Reports indicate the Department for Work and Pensions (DWP) is considering changes to PIP assessments, potentially leading to stricter eligibility criteria. There are worries that these changes could result in a significant number of people losing their entitlement to PIP.The fear is that losing this vital financial support could push vulnerable individuals into poverty.


Key issues raised:


Eligibility changes:Concerns center on potential changes to how the DWP assesses conditions, particularly those related to mental health.Impact on vulnerable people: Disability advocacy groups express alarm that these changes will disproportionately affect those with the greatest needs.

Poverty risks:The loss of PIP payments could severely impact individuals' ability to meet basic living costs.

 Government aims:The government has stated that they want to make sure that the system is fair, and that it is supporting the people that need it most. They have also stated that they want to encourage people that are able to work, to do so.

The rising uproar over proposed cuts to the Personal Independence Payment (PIP) has triggered urgent concerns from charities, who fear that such cuts will push 700,000 disabled households into poverty. As Chancellor Rachel Reeves prepares to deliver the Spring Statement, there are growing concerns that any cuts will exacerbate the problem, particularly with PIP rejection rates already over 332,000. More than a dozen organisations have signed an open letter questioning the government's assertions that assistance changes will encourage disabled people to work.The letter, signed by Disability Rights UK, Citizens Advice, Scope, and Sense, urges Reeves to "safeguard" PIP funds. Charities emphasized that PIP is a "lifeline for disabled households" that frequently allows people to stay in employment. The letter read, "We support the government's goal of assisting more disabled people in finding work." However, reducing disability payouts will neither achieve this goal or improve the system.The organisations warned that the rumoured £6bn worth of cuts could have a "catastrophic impact" on vulnerable households. They urged the Chancellor to "think again about cuts to disability benefits".The warning follows recent data shared by Work and Pensions minister Sir Stephen Timms revealing that the DWP "disallowed" 332,800 PIP claims at assessment during the 2023/2024 financial year.Of these rejected claims, only 13,500 were subsequently awarded PIP following an appeal - just four per cent of those initially disallowed.

A further 18,900 appeals have not yet been cleared, according to figures up to September 2024.

The high rejection rate comes amid criticism that the DWP is providing "unacceptably poor service" to disability benefits claimants. Many claimants face lengthy waits for their appeals to be processed.

A Government spokesperson defended the planned reforms, stating that the current welfare system is "broken and must change.

"Without reform, more people will be locked out of jobs, despite many wanting to work. That is not just bad for the economy, it's bad for people, too."Work and Pensions Secretary Liz Kendall has highlighted that 2.8 million people are out of work due to ill health.

The cost of working-age sickness and disability benefits has increased by £20 billion since the pandemic. It is projected to reach £70 billion over the next five years.

Charities insist there is "little evidence to suggest cutting benefits increases employment outcomes" and argue the benefits system needs reform, not cuts.

They acknowledge that while many disabled people want to work, they require appropriate support systems to help them find suitable employment. For others, work simply isn't a viable option due to their conditions.

Shelley Hopkinson from Turn2us criticised DWP delays, saying: "When payments are delayed, people struggle to afford basic essentials and care, their health deteriorates, and the stress can affect their ability to work."She urged the Labour Government to prioritise creating a "fair, efficient, and accessible social security system."


The Chancellor is set to deliver her spring statement on March 26, with welfare reform expected to be a key target for savings.

Ministers aim to achieve an 80 per cent employment rate through what they describe as "meaningful, principled reforms rather than arbitrary cuts to spending."

With PIP rejection rates already high, disability advocates argue any further cuts would only deepen existing hardships.