DWP chief paves the way for more benefit cuts as Starmer warned over spending
Labor appears to be paving the way for further cuts to disability benefits in this parliament as a senior minister refuses to rule out a review of controversial plans tabled earlier in the year.
Speaking to a cross-party committee, Work and Pensions Secretary Pat McFadden told MPs he was “not ruling out anything” when asked if he was considering future cuts.
“I’ve only been in this job for three months and if I start ignoring things it will only close doors in the future, so I’m not ignoring anything,” he added.
Earlier this year, Labor’s proposals to change the assessment criteria for personal independence payment (PIP) to make it effectively harder to claim were met with fierce opposition from campaign groups and politicians.
The benefit, now claimed by 3.8 million people, is designed to help cover the extra costs of living with an illness or disability.
Ministers backed down on the plans in late June after more than 100 Labor MPs threatened to vote against the government on the measures.
The concession was announced by Sir Stephen Timms amid the debate over the legislation, alongside a new review of the benefit he is spearheading. Speaking to MPs in August, the disability and social security minister said the app was not designed to provide deductions.
But at the end of October Sir Stephen announced that the terms of reference for that review had changed, adding that the review would “work within the Office for Budget Accountability’s (OBR) projections for future PIP spending”.
Pressed on the change by the work and pensions committee, Mr McFadden said the aim of the Timms Review “cannot be to spend more”. [PIP]”
“The rest of the Government needs to work within the budget parameters and the fiscal rules that the Government follows,” he said, responding to a question from Steve Darling of the Liberal Democrats.
Mr Darling said Independent: “The previous Conservative Government smashed Britain’s benefits system, shattering our economy and destroying our health and care system, while the current Government’s failure to create growth and jobs has done nothing.
“Many people up and down the country will be concerned to hear that the Work and Pensions Secretary refuses to rule out a repeat of last summer’s benefits fiasco. Ministers do not seem to understand that hitting disabled people who are already in work will make their employment prospects worse rather than better.”
“The government must learn from past mistakes and instead reduce the welfare bill by fixing the root causes, finally repairing our health and care services and making it easier for people to work.”
His comments came ahead of Labour’s second autumn Budget, alongside an early OBR report that warned Rachel Reeves’ new policy announcements would increase spending by £11bn in 2029/30, largely due to the reversal of benefit cuts and the scrapping of the two-child benefit cap.
Speaking after the financial event, Sir Keir Starmer reiterated plans to “reform the welfare state” and added that “the welfare bill has increased tremendously under the last government”.
The Prime Minister highlighted Alan Milburn’s review of the rise in the number of young people not in employment, education or training (Neets) to tackle what he called “a huge waste of potential”.
The Prime Minister’s official spokesman later said: “I think the Milburn review is expected in the spring of next year, with the final report due in summer 2026 and the Timms review in Autumn 2026.”
“It is absolutely vital that we get these reviews right. This system has not been properly reformed for many years, but we have taken clear steps to ensure welfare spending is on a sustainable trajectory.”
James Taylor, Strategy Director at disability equality charity Scope, said: “There are problems in PIP that need to be fixed, such as misunderstandings of assessments and a lack of trust between assessors and disabled people.
“This review will shape the future of PIP for years to come, so it is crucial to get it right.
“It is encouraging that a group of disability experts are ‘at the heart’ of this review, but ministers’ commitments to co-produce reforms with disabled people have been approached in good faith. It is vital that the government delivers on this promise.”
“This process should not be used to restrict access to PIP or any part of the benefits system.”
A DWP spokesman said: “We want a welfare state that looks after those in need and encourages people to work, while providing fairness to taxpayers. That’s why we’re launching the Timms Review, co-authored by disabled people and the organizations they represent, to make sure PIP is fair and fit for the future.”
