The Labour government has signalled it could revisit contentious cuts to disability benefits, with a senior minister refusing to rule out future reductions to Personal Independence Payment (PIP).
Minister Keeps Options Open on Benefit Changes
Speaking to the cross-party Work and Pensions Committee, Secretary of State Pat McFadden told MPs he was "not ruling out anything" when questioned about potential future cuts. The minister, who has been in post for three months, argued that ruling options out prematurely would "close doors in the future".
This stance follows Labour's earlier retreat from proposals to tighten the assessment criteria for PIP, a benefit claimed by 3.8 million people to help with extra costs from living with an illness or disability. Those plans were abandoned in late June after facing fierce opposition from campaigners and a rebellion from over 100 Labour MPs.
Reviews and Fiscal Pressure Shape Welfare Agenda
Following the U-turn, the government announced a review into PIP led by Sir Stephen Timms. Initially, the disability and social security minister stated this exercise was not designed to deliver cuts. However, in a significant shift at the end of October, the review's terms of reference were changed to clarify it "will operate within the Office for Budget Responsibility's (OBR) projections for future PIP expenditure".
Pressed on this change, Mr McFadden stated the Timms Review "cannot be to come up with more expenditure" on PIP and must work within the government's fiscal rules and budgetary parameters.
His comments preceded an early OBR report which projected that Chancellor Rachel Reeves's policy announcements, largely to reverse welfare cuts and scrap the two-child benefit cap, would increase public spending by £11 billion in 2029/30.
Starmer's Pledge for Reform Amid Rising Costs
After the fiscal event, Prime Minister Sir Keir Starmer reiterated his commitment to "reform the welfare state", noting that "the welfare bill has gone up extraordinarily under the last government". He highlighted a separate review by Alan Milburn into young people not in employment, education, or training (Neets), aiming to tackle a "massive waste of potential".
A government spokesperson confirmed the Milburn review is expected in spring 2026, with the Timms Review concluding by Autumn 2026, emphasising the need to ensure "welfare spending is on a sustainable trajectory".
James Taylor, Director of Strategy at disability equality charity Scope, responded by acknowledging problems with PIP that need fixing, such as inaccurate assessments. He urged that the review must not be used to restrict access to PIP, stating: "It’s vital the government keeps this promise."
The Department for Work and Pensions (DWP) said the Timms Review aims to ensure PIP is "fair and fit for the future" and is being co-produced with disabled people and their representative organisations.
