The UK Government’s planned cuts to disability benefits could place an extra £1.2 billion burden on local authority social care services and the NHS, according to new research from the Disability Policy Centre.
The reforms, which focus on changes to Personal Independence Payment (PIP), aim to reduce welfare spending by at least £5 billion by 2030.
However, the think tank warns that these savings may be significantly lower than expected. Their analysis suggests that increased demand on NHS services, reduced consumer spending from disabled households, and legal challenges against the cuts could limit the actual savings to just £100 million.
PIP is a financial support scheme introduced in 2013 to help people with disabilities or long-term health conditions manage extra costs related to their condition. It replaced Disability Living Allowance (DLA) as part of the Government’s wider welfare reform programme.
Unlike other benefits, PIP is designed to cover additional expenses such as mobility aids, transport, and care support.
The Government has argued that the current PIP system is unsustainable, with spending on the benefit doubling over the past decade. Proposed reforms could see stricter eligibility criteria, a shift towards providing equipment instead of cash payments, and fewer automatic awards for those with fluctuating conditions.
Ministers claim these changes will ensure that support is targeted at those who need it most while reducing overall expenditure.
Despite the Government’s cost-cutting aims, disability campaigners and policy experts warn that the reforms could have unintended consequences.
The Disability Policy Centre’s research highlights the financial strain that local councils and the NHS may face if disabled individuals lose support and turn to public services for assistance.
Without adequate financial support, more disabled people could require local authority-funded social care or emergency medical treatment, increasing costs for already stretched services.
Charities have also warned that reduced disability benefits could lead to higher poverty rates among disabled individuals, further impacting their health and wellbeing.
Another concern is the expected surge in appeals against PIP rejections. Historically, a significant proportion of PIP decisions have been overturned on appeal, with around 70% of claimants winning their cases at tribunal. The rise in legal challenges could delay benefit payments and increase administrative costs.
In addition, the think tank’s report suggests that cutting disability benefits could have a knock-on effect on the wider economy.
Disabled households contribute billions to the economy each year, and reduced financial support may lead to lower spending in local communities, affecting businesses and job markets.
Disability rights groups have strongly opposed the planned changes, arguing that they will push more disabled people into hardship. Critics have also questioned the fairness of cutting support while the cost of living remains high.
Arun Veerappan, interim research director at the Disability Policy Centre, described the reforms as causing significant harm to disabled individuals while delivering minimal financial benefit to taxpayers.
With growing pressure from campaigners, local authorities, and opposition parties, the Government may face calls to rethink its approach.
As debate over the future of disability benefits continues, the true cost of the reforms—both financial and social—remains a key concern for policymakers and affected communities.
