The DWP has been accused of “misleading” the UK over how many people will be worse off thanks to the DWP cuts.
People on PIP or Universal Credit warned over DWP using ‘accounting trick’
People on Personal Independence Payment and Universal Credit have been issued an urgent warning over an “accounting trick” the Department for Work and Pensions ( DWP ) is using. The DWP has been accused of “misleading” the UK over how many people will be worse off thanks to the DWP cuts.
Researchers have said around 100,000 more people could be plunged into poverty due to sweeping changes from the Labour Party government. According to DWP analysis, the cuts would push up to 250,000 people into poverty, including 50,000 children.
It also said some 370,000 people currently on disability benefits would lose on average £4,500 per year in 2029/30, as a result of the changes.
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But now data from the New Economics Foundation (NEF), and reported by Yahoo News, show 340,000 people face being pushed into poverty – 100,000 more than estimated.
“To put it another way, using this phantom policy to offset the scale and impact of actual cuts happening in the real world is akin to suggesting that you should feel better off because your boss had thought about cutting your wages but then decided against it,” the NEF said.
Tom Pollard, head of social policy at NEF, told Yahoo News: “Although the government may need to account internally for its decision not to proceed the last government’s proposed changes to the work capability assessment, it is misleading to suggest that this materially offsets the scale and impact of actual cuts the government plans to implement.
“Ill and disabled people will feel no tangible benefit from a potential cut not being taken forward, but the £6.7bn of cuts that are due to take place will have a very real impact on their lives – potentially pushing an additional 340,000 people into poverty by the end of this parliament.
“The government claims this will be mitigated by more people moving into work, but has not yet been able to produce an assessment of the likely employment impact of their planned reforms.”
A DWP spokesperson told Yahoo News: “Helping people into good work and financial independence is at the heart of our Plan to Change, but the broken social security system we inherited is failing people who can and have the potential to work, as well as the people it’s meant to be there for.
“That’s why we’re delivering a £1 billion employment support package to break down barriers for disabled people into work. We’re also rebalancing universal credit payment levels, so the benefit’s main rate rises permanently above inflation for the first time, in a boost for low-income families.
“The OBR will give their assessment on the labour market impacts of our package at the autumn statement, having already concluded 730,000 people are forecast to be receiving the new lower rate of UC health.”