Scotland braces for UK PIP disability cut announcements

The UK Labour Government is expected to announce a package of disability cuts and freezes on Tuesday.

The announcements could impact disabled people across the UK – including people with cancer and long-term physical and mental health conditions.

There are approximately 3.6 million disabled people in receipt of Personal Independence Payments (PIP) in England and Wales and around 374,655 people receiving the equivalent benefit in Scotland.

Cuts or freezes to disability benefits could potentially impact all of these people.

Last week, Labour MPs were called into No 10 for talks about major benefits cuts that are expected to be confirmed on Tuesday.

The radical package of reforms are expected to make £5bn worth of savings by making it harder to qualify for PIP – a benefit not linked to work that is meant to help people with the additional costs of their disability.

There is also speculation that the reforms could make further savings by freezing PIP payments next year, so they do not rise with inflation.

However, the plans to withhold inflation rises could now be dropped in light of strong opposition from loyal Labour MPs.

Regardless of these rumours, there is still widespread concern and speculation about the potential impact on people with disabilities ahead of the Government’s announcement on Tuesday.

Who is impacted?

There are approximately 4 million disabled people in receipt of Personal Independence Payments (PIP) or Adult Disability Payment (ADP) in Great Britain. iStock

The reforms could impact the estimated 4 million people on PIP benefits in Great Britain, including people with cancer and long-term physical and mental health conditions.

PIP, which has been replaced by Adult Disability Payment in Scotland, provides extra money to people with disabilities or long-term health conditions – such as cancer and long-term physical and mental health conditions.

ADP is a devolved benefit, and Scottish recipients are paid from Social Security Scotland. However, much like the Winter Fuel Payments, which Labour cut in 2024, the Scottish Government receives money from Westminster to fund social security benefits like disability payments.

Any benefit cuts at Westminster could potentially leave the Scottish Government with a set of tough decisions to make.

The Fraser of Allander Institute (FAI), an economic research institute based at Strathclyde University’s economics department, warned that a one-year freeze in PIP rates at Westminster could worsen the Scottish Budget by around £100m every year from 2026-27 through a reduction in UK block grant funding.

The Institute estimates that a £1bn reduction in PIP spending through reduced eligibility would worsen the Scottish Budget by around £115m and impact about 125,000 people in 2029-30 – which is about 2.5% fewer people in receipt of the benefit than would otherwise be the case.

ADP benefits are made up of two parts – a daily living benefit and a mobility benefit – and people can qualify for one or both.

It is different to benefits such as Universal Credit because it is not dependent on whether applicants are working or not. Income and savings are not considered. The amount received depends entirely on how someone’s condition affects their ability to do everyday activities and get around.

People who are awarded the daily living benefit can get up to £72.65 a week for standard benefits or £108.55 for enhanced benefits.

People who are awarded the mobility benefit can £28.70 a week for a standard award or up to £75.75 a week for an enhanced award. Those with enhanced awards can also apply to lease an accessible vehicle.

People who are currently receiving these benefits or that qualify for these benefits could all potentially be impacted by Tuesday’s announcement.

SNP work and pensions spokesperson, Kirsty Blackman MP, said any planned cuts to disability payments should be “abandoned”.

“The Labour government has done a huge disservice to disabled people by deliberately fuelling speculation about the cuts while delaying a clear announcement – leading millions of disabled people to panic about the impact it will have on their everyday lives,” Blackman said.

“Keir Starmer should admit he got this one wrong, abandon these cuts, and urgently move to reassure disabled people that their incomes will not be slashed.”

Overhaul of benefits system set to be Starmer’s biggest battle

Insight Paris Gourtsoyannis Westminster Correspondent

The UK Government wants to present this as a push to get more young people into work.

A growing number of young people are being signed off long term, some of them with mental health conditions, and ministers say what they need is better support to find a job.

But it’s clear that this is also about money. Health and disability benefits already cost the taxpayer £65bn a year. That’s forecast to rise to over £100bn by the end of the decade.

In Scotland, people who get Employment Support Allowance, or have their Universal Credit topped up because of a disability or health condition – they could see their support cut.

Other disability benefits are devolved, so cuts won’t have a direct effect in Scotland – but they would hit the Scottish Government’s budget overall, which might mean tough decisions about the level of support Scottish ministers can afford.

And what about the political reaction?

Well this is shaping up to be the biggest battle within the Labour Party of Keir Starmer’s premiership. We’ll see if any measures have been watered down on Tuesday.

Every Labour MP has been invited into Downing Street to try and win them over – I’ve been told those meetings with Keir Starmer’s advisers have been tense.

Scottish Labours MPs have told Number 10 that it hasn’t controlled the narrative around this announcement. Instead, leaks and rumours have frightened and angered disabled people.

On Tuesday, we’ll hear what the facts are.