The new spring statement outlined reforms to be made to the social welfare system. In her recent speech, Chancellor of the Exchequer Rachel Reeves announced Government plans to halve the Universal Credit Health element, as well as restricting personal independence payments (PIP). Reeves claims that doing so will make the British public ‘on average over £500 a year better off under this government,’ and stabilise the economy.
‘We are reforming our welfare system, making it more sustainable, protecting the most vulnerable and supporting more people back into secure work, lifting them out of poverty,’ Reeves said.
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However, health leaders oppose these reforms, claiming that they will negatively impact public wellbeing. The proposed cuts to benefits such as PIP have sparked a debate, with health leaders claiming that they contradict government health goals to shift from treatment to prevention.
‘The Government’s health mission and plans to shift from treatment to prevention will be undermined by these cuts. Inequality and deprivation are directly linked to poor health,’ said RCN General Secretary and Chief Executive Professor Nicola Ranger. ‘Measures that push vulnerable people into poverty, particularly those with disabilities and long-term conditions, will not only worsen both physical and mental health outcomes but pile more pressure on NHS services, costing more in the long run.’
Campaigner’s say PIP and Universal Credit Carer element restrictions will result in approximately 150,000 carers losing their benefits, despite already saving costs for the UK economy.
‘Changes to Personal Independence Payments (PIP) entitlement rules will see 150,000 people lose their entitlement to carers’ benefits by 2029/30 - a reduction in financial support for carers worth £500million,’ Helen Walker, Chief Executive of Carers UK said. ‘Carers save the UK economy an estimated £184 billion a year, but now many more are in danger of further financial hardship and poverty. They deserve so much more. The repercussions of today’s changes will be felt deeply by those who for too long, have been our last line of defence – providing vital support which simply can’t be found elsewhere.’