Liz Kendall, Secretary of State for Work and Pensions, has outlined plans to cut £5bn of Government spending on welfare by the end of the decade.
Central to this, will be the tightening of the eligibility criteria for claiming Personal Independent Payment (PIP). The Government will also consult on how frequently to conduct PIP reassessments, whilst scrapping Work Capability Assessments.
It also plans to increase the basic rate of Universal Credit, but cut the incapacity benefit for new claimants judged as unfit for work. Furthermore, people under the age of 22 wanting the health top-up of universal credit will no longer qualify under plans being consulted on.
A recent report by Zoopla found that rents for new lets are £270 per month higher than three years ago, adding £3,240 (27%) to the annual cost of renting since 2021. Meanwhile, the Joseph Rowntree Foundation’s 2024 UK Poverty Report found more than a third of private renters were in poverty after housing costs.
Responding to the announcement, Dan Wilson Craw, Deputy Chief Executive of Generation Rent, warned that the proposed change could lead to some private renters no longer being able to afford their rent. He said:
“It is deeply concerning that the Government is planning to reduce the number of people who can claim PIP and limit Universal Credit for those under 22.
“Research shows just 9% of private rented homes are accessible, meaning many renters living with a disability are forced to pay inflated rents due to a lack of choice, or live in homes that aren’t suitable for their needs. Many renters use their PIP to supplement their rent, meaning these changes could lead to them being forced out of their homes. If disabled renters are forced out because of unaffordable rents, they are unlikely to find suitable housing that meets their specific needs.
“For renters under 22, the housing element of their Universal Credit often doesn’t cover their rent, meaning top ups can be a lifeline that keeps a roof over their head.
“We urge the Government to listen to anti-poverty organisations and back track on the proposals to cut welfare spending.”
