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The Government published their Pathways to Work Green Paper in March. In it, they propose drastic cuts and radical changes to Personal Independence Payment and Universal Credit. We're campaigning against these proposals as we know they will push countless families in Liverpool into poverty, drive inequality and increase deprivation.
We're campaigning against proposed cuts to disability benefits.
The Government's Pathways to Work Green Paper sets out their plans to get more people into work whilst delivering considerable savings on welfare spending. The Government claim that these reforms will deliver a welfare system that is fairer and provides support in a dignified way that preserves peoples’ independence. We know that this will not be the case.
WHAT ARE THE PROPOSALS?
The Government's Pathways to Work Green Paper mainly targets two disability benefits - Personal Independence Payment (PIP) and Universal Credit (UC). The Government has launched a consultation on the Green Paper - this closes on the 30th June. It's important to note that many of the changes proposed in the Green Paper are not mentioned in the consultation. This is because the Government wishes to pass these changes as an act of law in Parliament. MPs will need to vote to approve the proposals. The major changes proposed by the Government include:
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Changing the eligibility for the daily living component of PIP
People applying to claim PIP currently are assessed and score points against a list of criteria. The DWP calls these criteria 'activities'. Someone must score at least 8 points to qualify for PIP. These points can add up to 8 across different activities. Under the new rules, claimants will still need to score at least 8 points in the assessment. But they must score 4 points in a single activity. Data released by the Government under a Freedom of Information request shows that 87% of people receiving the standard rate of the daily living component of PIP did not score 4 points in any single activity.
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Scrapping the Work Capability Assessment in 2028
Disabled people who claim Universal Credit or Employment and Support Allowance go through a Work Capability Assessment (WCA) to find out if they are eligible for extra money. The Government want to get rid of this assessment and replace it with a tougher PIP assessment.
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Freezing the health element of UC
The UC health element is additional money you can get if you claim UC and have a health condition or disability. The Government plan to freeze the rate the health element of UC is set at for current recipients from 2026 - that's £97 per week. For new claimants, they will decrease the rate to £50 per week - this rate will then be frozen.
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Creating a new Unemployment Insurance
The Government propose to create a new benefit called Unemployment Insurance. They will do this by merging Job Seekers Allowance and contribution-based Employment and Support Allowance. It will only be paid for a certain amount of time and will be paid at a set rate. Sick and disabled people will not get any additional premiums or money on top of this.
You can read more about the Government's proposals by clicking the links below:
WILL THESE PROPOSALS AFFECT ME?
Our argument is that these proposals will affect Liverpool disproportionately. Liverpool is the 3rd most overall deprived local authority in England, the 4th most deprived by income and 3rd most deprived with regards to health and disability. Healthy life expectancy rates have also reduced in Liverpool since the COVID-19 pandemic meaning that many people in their fifties and sixties now have significant long term health conditions and disabilities which prevent them from working long before they reach state retirement age.
If enacted, these proposals will see £104 million lost from Liverpool's economy every year as a result of the PIP cuts alone. These reforms will see 24,200 people in Liverpool losing their PIP Daily Living benefit. But these proposals won't just affect people who receive PIP. Like many benefits, PIP can passport to other benefits - this means that receiving PIP can unlock additional financial support for people. This can include help with the cost of housing, Council Tax, and travel.
When someone provides regular and substantial care for someone who receives PIP, they can be eligible to claim Carer's Allowance. If the person they care for loses their PIP entitlement, they too will no longer be able to claim Carer's Allowance. Carers are often the partner or relative of a disabled person. This could mean devastating losses to many households, in some cases amounting to tens of thousands of pounds per year.
In short, these proposals will affect everyone in Liverpool because they threaten to see money lost from the economy. If you, a family member, or someone you care for receives PIP, we recommend you check your PIP Award Letter to see if you scored 4 or more points in at least one area or 'activity' of the assessment. If you didn't score 4 points in at least one area, don't panic. Most of these proposals won't come into force until next year at the earliest if they are passed by Parliament. You may however wish to begin thinking about what steps you can take next, and seeking advice could be a good idea. You can click here to view our members list to find an organisation who may be able to help you moving forward.
WHAT ARE WE DOING IN RESPONSE?
As advice providers and support organisations, we know that these proposals will be extremely harmful to the most vulnerable people in society. That's why we're launching our Cuts Cost Lives campaign. We've written to the Secretary of State for Work and Pensions Liz Kendall MP to oppose the Government's plans. You can read, download, and share this letter below. We'll share a response with you when we receive one. We've also shared our letter with Liverpool's Members of Parliament, Council and Combined Authority leaders, and members of our network. We'd encourage you to share this letter too - the more people are aware of the risk these proposals present, the more likely we are to be able to make positive change.
Click the icon to download our letter
We've also started an awareness campaign on our social media channels. The number of people that will be affected by these proposed cuts is immense. Everyone will know someone in one way or another that would be affected by these proposals, and our communities will be affected by the massive amounts of money that people will lose. Make sure to follow along with our campaign, reposting and sharing our content when you can. We need our message to be heard by the people who have the power to design and shape policy.
We want to make it clear that we will be here for our members and the public, no matter what happens. We're the community of practice for Liverpool's free legal advice sector. If in the worst case scenario these proposals are passed by Parliament, we will work with our members to provide guidance and support. Our members will be needed more than ever, and we'll work to ensure they have the resources and tools necessary to help people in Liverpool access the free legal advice they need.
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