UK plan to cut welfare budget by £5bn ‘creates uncertainty for vulnerable people in Scotland’

Secretary of State for Work and Pensions Liz Kendall
Concerns have been raised about how people in Scotland could be impacted by plans announced by Secretary of State for Work and Pensions Liz Kendall to cut £5 billion of UK government spending on welfare by the end of the decade.
The measures, which the government argues are needed to “fix the broken benefits system” and balance the nation’s books, are expected to focus on tightening 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 the plans being consulted on.
In Scotland, Adult Disability Payment is replacing Personal Independence Payment (PIP). It is devolved to the Scottish Government and paid through Social Security Scotland. Universal Credit remains reserved to Westminster and is administered by the Department for Work and Pensions (DWP).
However, changes to PIP and other public spending in England and Wales can have a knock-on effect in Scotland, as they lead to adjustments in the Scottish block grant.
IPPR Scotland said the announcement “leaves many unanswered questions” for people in Scotland.
“The UK government is attempting to rewire support and incentives for those who can work to do so, but this leaves many unanswered questions, creating unwelcome uncertainty for vulnerable people in Scotland, many of whom depend on this support to live a good life in difficult circumstances,” said researcher Casey Smith.
“The Scottish benefit equivalent to PIP is the Adult Disability Payment (ADP), uptake of which is higher. It has a different application, and its distinctive design emphasises dignity and respect. If today’s decision by the UK government filters through as a reduction in the Scottish budget, the Scottish government will face pressure either to follow suit and tighten eligibility, or make cuts elsewhere. The ball is in the Scottish government’s court as to how it chooses to respond.
“Another unanswered question is how the Scottish Government can respond to changes in Universal Credit, given that it is a reserved benefit? The proposal to replace Work Capability Assessments with the Personal Independence Payments application process raises questions for how this will work for people in Scotland. UK and Scottish Ministers must provide people in Scotland with urgent clarity.”
Citizens Advice Scotland (CAS) warned that disabled people should not pay the price for wider economic challenges.
CAS head of social justice Emma Jackson said: “We are very concerned about the implications of today’s statement. While much of the detail of how it will affect Scotland is still not clear, the UK Government’s aims to cut the welfare budget by £5bn by 2030 will certainly put pressure on the system here. We fear it would lead to reduced incomes for those experiencing some of the most severe poverty in our society. This is unacceptable.
“In addition, the whole public conversation over the last couple of weeks has been so distressing for sick and disabled people, many of whom are terrified about what these changes could mean for them.
“Every day, our CAB advisers provide expert advice and support to disabled people and those with long-term health conditions, working hard to get people the social security payments they are entitled to. Evidence from across the Citizens Advice Network in Scotland clearly shows that disabled people are already finding their income is not enough to live on. We constantly hear of meals being missed, essential medical devices not being charged and people in cold, damp homes, with devastating consequences to their physical and mental wellbeing. To cut the income of people still further by changing who is eligible for support, even as the cost of living keeps rising, would be cruel and wrong.
“We absolutely agree that our social security system needs reform. Universal Credit is broken and causes destitution by design, and yes people should be helped to work if they can. But we need to look at the system as a whole, not bits of it in isolation. Social security is an investment in all of us. It should be both the safety net and springboard that any of us could need at any stage in our lives. Investing in this benefits all of us and our economy in the long term.
“The UK Government says there are difficult decisions to be made. I challenge Ministers to talk to our CAB Advisers and listen to what decisions people already must make. Whether to turn the heating on or charge an electric wheelchair. Whether to pay the rent or put food on the table. These are the really hard decisions. Disabled people should not pay the price for the wider challenges in our economy.”
STUC general secretary Roz Foyer said: “These are reforms that could well have been delivered with a blue rosette. Actively making it harder for people who cannot work and who need support is not the change that was promised during the election.
“It’s a short-sighted, reactionary decision that will negatively impact on the Scottish Government’s Budget. This is the wrong choice at any time but to do so when food, energy, utilities and housing costs are still eye-wateringly high, the government is risking throwing more people into completely avoidable destitution. You don’t need to cut the support system to those with the least when you can cut the profits of those with the most.
“The UK Government had a choice. They could have targeted those with wealth, assets and property, taxing and then redistributing the revenue. They’ve chosen instead to punch down – something we cannot support.”
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.”