Research by the Resolution Foundation think-tank warned on Wednesday millions of low-income households are at risk of a ‘major income shock’ as a result of the reforms
Keir Starmer is facing a mounting backlash from furious Labour MPs over controversial cuts to sickness and disability benefits.
Veteran Labour MP Diane Abbott warned the PM there was “nothing moral” about slashing payments for up to a million people. She accused the government at PMQs of wanting to “balance the country’s books on the back of the most vulnerable people and poor people in this society”.
Labour MP for Blackpool Chris Webb said cuts to a key disability benefit – Personal Independence Payments (PIP) – would be a “devastating blow” to his constituents.
He warned: “I will never vote for anything that makes people in Blackpool poorer – and some of these reforms could do exactly that.” He said instead the government should look at raising billions by introducing a wealth tax of 2% on assets over £10million. Mr Webb added: “This is the kind of reform we need – one that protects the vulnerable instead of punishing them.”
His call was echoed by the Labour MP Neil Duncan-Jordan, who posted on X: “Tightening the eligibility criteria for PIP will plunge more disabled people into poverty. Benefits are already far from generous, we must not balance the books on the backs of the most vulnerable. Those with the broadest shoulders should pay their share.”
Left-wing Labour MP Richard Burgon also said the PM would also face the “mother of all rebellions” if he failed to drop “cruel” £5billion cuts to the welfare system.
On Wednesday, the Department for Work and Pensions minister, Torsten Bell, said the government would need to introduce legislation to bring in reforms to PIP. It has been suggested Mr Starmer faces the biggest revolt of his premiership – with up to 40 MPs potentially rebelling – when the Bill reaches the Commons.
READ MORE: Keir Starmer’s benefit cuts plan savaged by Diane Abbott – ‘balancing books on poorest’
Mr Starmer defended the proposals, telling the Commons during PMQs it was a “moral issue”, with one in eight young people not in employment, training, or education. He added: “I’ve lived with the impact of disability in our family through my mother and brother all my life. I do understand the human impact of this but the current system is morally and economically indefensible and we’re right to reform it.”
But grim research published on Wednesday warned millions of low-income households are at risk of a “major income shock” as a result of the reforms. The Resolution Foundation said on average households with at least one disabled person are estimated to lose out by £400-a-year by 2029-30.
READ MORE: PIP changes and major benefit cuts unveiled – what 7 key changes mean for you
But they warned there is “significant variation”, with some people losing up to £9,600 per year by the end of the decade. Plans to tighten eligibility for PIP would mean between 800,000 and 1.2million people losing entitlement, they concluded.
They said PIP claimants with musculoskeletal conditions, which affects bones, joints and muscles, are most likely to be impacted by the reforms. Those with learning difficulties, autism and cerebral palsy are least likely to be hit, the research added.
The Resolution Foundation said the government’s reforms are a “serious attempt” to tackle the growing bill on health and disability benefits. But they added: “Any gains risk being completely overshadowed by the scale of income losses faced by those who will receive reduced or no support at all – irrespective of whether they are able to work.
“Although it includes some sensible reforms, it is hard to escape the conclusion that many of the proposals in the Green Paper have been driven by the need for short-term savings to meet fiscal rules, rather than long-term reform, with some of the suggested giveaways or transitional protection being unconfirmed and subject to further consultation. The result risks being a major income shock for millions of low-income households.”
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