Disability benefit cuts cost more than they save, says charity

Controversial cuts to benefits for sick and disabled people will cost taxpayers more than they save, a leading disability charity has claimed.

The Department for Work and Pensions (DWP) toughened the eligibility rules for the mobility component of Personal Indepence Payments (PIP).

The new rules mean that disabled people who are able to walk more than just 20 metres could forfit their eligibility for the highest mobility rate of PIP – otherwise known as the “20 metre rule”.


Campaigners protest against government welfare changes. Photo: Paula Peters

According to research from the MS Society, the UK Government can expect to save £83.3m over three years, but this cruel change will be easily outweighed by £92.7 million in knock-on costs to other social security benefits and the National Health Service.

And this comes in spite of DWP ministers claiming the “20 metre rule” would not have “any significant additional cost implications” for other Government departments.

Analysis by the MS Society suggests that, between 2020 and 2023, the cuts to PIP will cost an extra £22.3 million to GP services, A&E, and counselling services.

It will also cost £57.4 million in lost tax revenue from people with MS and their carers having to reduce hours or quit their jobs entirely.

A further £11.4 million in costs will result from extra benefit payments for Employment and Support Allowance and Carer’s Allowance for people who are left unable to work.

And £1.7 million in costs will be passed on to taxpayers due to the DWP having to process more benefit appeals and PIP reassessments.

The latest official DWP statistics reveal that a shocking 73% of PIP appeals are overturned in favour of claimants at tribunal.

Photo: Paula Peters

Genevieve Edwards, MS Society Director of External Affairs, said: “We’ve long known about the enormous harm caused when PIP takes vital support away from people with MS.

“Our new report shows for the first time this harm is rebounding on the Government: the knock-on costs from people losing support are greater than the original cuts.

“So the Government is squandering millions from the public purse while derailing lives.

“Scrapping this senseless rule would stop this unnecessary waste and help people with MS finally get the support they need.

“MS can be painful and exhausting, it shouldn’t be made harder by a welfare system that doesn’t make sense.”

Get News Updates!

Register to receive a notification each time we publish a new story. Don't worry, we'll never spam you and it's easy to cancel at any time. Service provided by Google Feedburner.

- Sponsored Content -

Trending Now

UK pensioners ‘suffering the worst poverty rate in western Europe’

Tories warned against further rises to the state pension age.

Nearly half of DWP staff are dependent on benefits to make ends meet

At least 40% of DWP staff are claiming benefits to top-up low wages.

Social housing tenants who damage their home ‘should face benefit sanctions’, report says

Report claims "rogue tenants" have cost taxpayers in London around £3.4million since 2014.

A homeless person dies every 19 hours in austerity Britain

Services are failing to protect homelessness people, say campaigners.

The Latest

Nearly half of DWP staff are dependent on benefits to make ends meet

At least 40% of DWP staff are claiming benefits to top-up low wages.

New DWP Secretary refuses to commit to ending the benefit freeze

Thérèse Coffey also claimed there is "no causal link" between the two-child benefit limit and rising child poverty.

Tenancy reforms leave private renters at risk of ‘revenge evictions’

Tenants who complain about or request repairs unfairly removed from their homes.

Social housing tenants who damage their home ‘should face benefit sanctions’, report says

Report claims "rogue tenants" have cost taxpayers in London around £3.4million since 2014.

New SNP childcare pledge to ‘lift families out of poverty’

Free childcare pledge to save families £4,500 per year for each child.

2.6 million mid-life workers expect to leave their job to care for a relative

Government urged to invest in long-term and sustainable social care funding so that more people can remain in work.

Follow Us

16,666FansLike
9,373FollowersFollow

More Articles Like This