• Latest
  • Trending
  • All

Does cutting benefits work?

March 19, 2025

Electric vehicle sales targets could be cut after pressure from car makers

August 14, 2026

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026

Rare breeding bat found roosting near South Yorkshire reservoir

August 14, 2026

Killer who will not say where wife's body is to stay in prison

August 14, 2026

Amy Hunt: Can getting glammed up really improve your performance?

August 14, 2026

Arrests and road closed over suspected abduction in East Lothian

August 14, 2026

Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

August 14, 2026

Ardoyne: Police defend response to north Belfast incidents

August 14, 2026

Australia v Bangladesh: Steve Smith benefits from reprieve but tourists dominate day one of first Test

August 14, 2026

Builders unearth €9m gold loot sealed in walls of Belgian property

August 14, 2026

Chad’s Succès Masra: Former prime minister given state pardon

August 14, 2026
News
  • Login
  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Friday, August 14, 2026
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Australia v Bangladesh: Steve Smith benefits from reprieve but tourists dominate day one of first Test

    Builders unearth €9m gold loot sealed in walls of Belgian property

    Chad’s Succès Masra: Former prime minister given state pardon

    Japan: Record rain in Chiba kills eight as thousands stranded at Narita Airport

    Engine parts smashed Ryanair window that man’s head was sucked out of, report says

    Stolen Matisse artworks recovered by police in Brazil

    Israeli settlers besieging Palestinian families in West Bank village

    Concern grows over conditions on USS Abraham Lincoln

    Australian army whistleblower released on parole after more than two years in jail

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Killer who will not say where wife's body is to stay in prison

    Arrests and road closed over suspected abduction in East Lothian

    Tân mawr ger Llanymddyfri yn gorfodi nifer o bobl i adael eu tai

    Ardoyne: Police defend response to north Belfast incidents

    'Welcome to one of the most bizarre by-elections in recent history'

    European Athletics Championships 2026: Amy Hunt wins 200m gold as Dina Asher-Smith claims bronze

    'Releasing my son's killer early would be a slap in the face'

    Richie Berrington and Lyle Robertson star as Scotland crush Canada

    Wrexham XL bully owner Chanel Fong says dog not type to savage anyone

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Electric vehicle sales targets could be cut after pressure from car makers

    Business Daily – Taking Stock: The cost of heatwaves

    US says dozens of countries helped China dodge Trump’s tariffs

    RBSI announces around 50 job cuts in Jersey

    UK economy grows but experts warn of challenging months ahead

    Twitch users can now block Amazon from using their content to train AI

    Burnham warned Iran war could hit UK growth next year

    First wave of ‘pounds for pylons’ energy discount sites revealed

    Trump Media reports $238m loss as crypto falls

  • Tech
  • Entertainment & Arts

    Meghan hits red carpet at Power of Women in Hollywood

    Margot Robbie unable to speak at Saltburn premiere

    Barbra Streisand: Siri can now pronounce my name

    Wes Anderson’s The Grand Budapest Hotel inspires cinema’s look

    Taylor Swift/ Travis Kelce romance reaches White House

    The Killers booed at Georgia concert after inviting Russian fan on stage

    Watch: Memorable moments from Parkinson's star-studded show

    Tom Jones: Neighbour surprised to find singer in flat below

    Black Country Folk Festival showcases local musicians

    Watch: Australians set new world record with Tina Turner dance

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Reality Check

Does cutting benefits work?

March 19, 2025
in Reality Check
9 min read
243 10
0
492
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


BBC Interior of a Jobcentre showing a man standing at a Jobpoint computer terminal. The BBC Verify logo is in the top corner.BBC

Work and Pensions Secretary Liz Kendall has set out how the government plans to cut billions of pounds from the working-age welfare bill in the coming years.

The focus will be on reducing spending on health and disability benefits.

The bill is rising rapidly and many argue it needs to be curbed for the sake of the UK’s public finances – as well as the economic and individual benefits of getting those who can work back into employment.

The plans include cutting the level of some benefits and tightening eligibility for others, along with investment to help people into work.

But this is not the first government to seek savings from the welfare budget.

BBC Verify has examined the past 15 years of policies in this area to see what might be effective – and what risks being counterproductive.

Cutting payments

The working-age health and disability benefits bill has certainly been increasing in recent years, and is rising rapidly.

The Office for Budget Responsibility (OBR), the official forecaster, has projected that total state spending on these benefits for people in the UK aged between 18 and 64 will increase from £48.5bn in 2023-24 to £75.7bn in 2029-30.

That would represent an increase from 1.7% of the size of the UK economy to 2.2%.

By 2030, around half of the expenditure is projected to be on incapacity benefit, which is designed to provide additional income for people whose health limits their ability to work.

The other half is projected to be on Personal Independence Payments (PIP), which are intended to help people of working age with disabilities manage the additional day-to-day costs arising from their disability.

The government hopes to curb the rise in the overall bill by holding some of the benefits of existing incapacity claimants flat in cash terms – rather than allowing them to rise in line with inflation – until 2030.

It also plans to reduce the benefits of many new claimants outright relative to current levels.

This echoes the policies of previous governments.

Between 2014 and 2020, most working-age benefits were increased below the rate of inflation to save money.

This included a portion of the payments received by people on incapacity benefit.

However, despite these real terms cuts in many benefits, from 2015, more and more people claimed incapacity benefit.

So cutting the value of individual payments might save some money up front, but still not have a dramatic impact on the overall bill in the longer term if claimants continue to rise.

A bar chart showing the net change in the number of people claiming incapacity benefits in Great Britain between 2009-10 and 2023-24. The number of people claiming incapacity benefits has increased in each of the last six financial years, with the largest rises seen in the last two years (200,000 in 2022-23 and 186,000 in 2023-24). The number previously fell in six out of nine years between 2009-10 and 2017-18.

Tighten eligibility

The Government is also planning to keep a lid on the overall working-age benefit bill by making it harder for people to claim some disability benefits, notably PIP.

This too echoes the policies of previous administrations.

For instance, Rishi Sunak’s government had proposed making it harder for people with mental health conditions to claim PIP arguing that the monthly payment was not proportionate to the additional financial needs created by their conditions.

But it is important to note that efforts to change the eligibility criteria for these benefits over the past 15 years have not yielded the results hoped for.

PIP was introduced in 2013 to replace the old Disability Living Allowance, with the intention it would lead to savings of £1.4bn a year relative to the previous system by reducing the number of people eligible.

PIP was initially projected to reduce the number of claimants by 606,000 (28%) in total.

Yet the reform ended up saving only £100m a year by 2015, and the number of claimants rose by 100,000 (5%).

Another attempt in 2017 to limit access to PIP was also reversed.

The reason was that many people appealed against refusals that had been triggered by the tightened eligibility criteria.

Also, the emergence of cases in the media which seemed unfair meant ministers, often under pressure from their own backbench MPs, ultimately ordered the eligibility rules to be relaxed.

Official decisions not to award PIP and incapacity benefit to claimants are still often challenged and around two-thirds are ultimately decided in the challenger’s favour at an independent tribunal.

Encourage work

The government is also seeking to make savings from the working age welfare bill by encouraging people to enter work.

Around 93% of incapacity benefit claimants are not in work and the same is true of 80% of PIP claimants.

One of the proposals is to have more regular reassessments of people on incapacity benefit to determine if their condition has changed and they can now be expected to work.

The fall in the number of people claiming incapacity benefit in the early 2010s has been attributed by the OBR to reassessments of a large number of people in receipt of an older form of the benefit.

However, an aggressive or onerous reassessment regime could risk imposing distress on people who are unable to work.

The government has said that those with “the most severe, life-long health conditions” will face no future reassessments. But it has not specified which conditions will qualify.

It has also set out plans to encourage more people on health and disability benefits into work through tailored and personalised support.

There have been various schemes designed to achieve this over the past 15 years, though they have not been on a large scale.

Evaluations have shown some positive employment effects from them.

However, the OBR concluded last year that the evidence base was still limited and did not suggest such programmes have, so far, made a “significant contribution” to getting people into work.

That implies the official forecaster may hesitate to assume greater state investment in these schemes will pay for itself through higher employment and tax revenues, and result in net savings in public expenditure.

Nevertheless, some experts argue it would make sense for the government to re-assess more regularly whether people in receipt of health and disability benefits are still unable to work and – if their circumstances are found to have changed – to provide them with additional support to get into the workforce.

“Not doing reassessments and work-focused interviews definitely makes things worse,” says Jonathan Portes, a former chief economist at the Department for Work & Pensions.

Correction 17 March: an earlier version of this article wrongly stated the percentage of claimants’ appeals upheld, based on DWP appeals. The article has been updated to reflect the full proportion, upheld at independent tribunal.

BBC Verify logo



Source link

Tags: benefitscuttingwork

Related Posts

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026
0

Iran did not acknowledge being responsible, but shipping analysts have said it was likely to have been behind the...

Image of supreme leader shared by Iranian media is AI-generated

August 13, 2026
0

Mojtaba Khamenei hasn’t been seen in public since March - but AI-generated images of him continue to spread online....

White House makes misleading claim on US childhood vaccines

August 12, 2026
0

US President Donald Trump says 'little children' in the US get 72 jabs, BBC Verify explains why that claim...

  • Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

    677 shares
    Share 271 Tweet 169
  • Belgian footballer arrested in cocaine investigation

    533 shares
    Share 213 Tweet 133
  • Next to raise prices to help pay for rising wage costs

    532 shares
    Share 213 Tweet 133
  • South Wales Police officers injured, one arrested

    525 shares
    Share 210 Tweet 131
  • Charities to get £15m fund to save surplus farm food

    516 shares
    Share 206 Tweet 129
  • Trending
  • Comments
  • Latest

Lee McGregor: Scot seeks world title in 2025 & Nathaniel Collins bout

January 16, 2025

Belgian footballer arrested in cocaine investigation

January 27, 2025

Next to raise prices to help pay for rising wage costs

January 7, 2025

World Cup 2022: TikTok brings football fever to millions of fans

0

UK economy will get worse before it gets better, warns chancellor

0

One of Central America’s most active volcanoes erupts again

0

Electric vehicle sales targets could be cut after pressure from car makers

August 14, 2026

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026

Major oil slick washes up on Iran coast after Hormuz ship strike

August 14, 2026

Categories

Companies

Electric vehicle sales targets could be cut after pressure from car makers

August 14, 2026
0

The UK's electric vehicle (EV) sales target could be cut after the government launched a review following pressure from...

Read more

Business Daily – Taking Stock: The cost of heatwaves

August 14, 2026
News

© 2023 GODJ - NEWS CORP - news.godj.com.

Explore NEWS.GODJ.COM

  • Home
  • News
  • Sports
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

© 2023 GODJ - NEWS CORP - news.godj.com.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.