A major UK charity has raised the alarm over government plans to cut disability benefits, warning that people with mental health conditions could be among the hardest hit.
According to research by the Money and Mental Health Policy Institute, around one in four people currently receiving the Personal Independence Payment (PIP) expect to lose their benefits under proposed changes. PIP is a welfare benefit designed to help people with extra costs related to a disability, whether or not they are working.
The government wants to reform the system to save £4 billion a year by 2029-30. The proposal would make it harder to qualify for PIP by limiting eligibility to those with severe difficulties in at least one area of daily life. This means people with a range of moderate challenges could lose access to support.
The charity surveyed 227 PIP recipients who have mental health conditions. Of them, 24% said they feared losing the benefit, and 39% were unsure whether they would still qualify.
The findings raise concerns that many working people could be pushed out of employment. One in five respondents were currently working, and nearly two-thirds of that group said they would have to reduce their hours or stop working altogether if their benefits were cut. Many said they relied on PIP to afford transportation or private mental health care.
“These changes would mean that many people with mental health problems who are managing to work would be forced to cut their hours or leave their jobs,” said Helen Undy, Chief Executive of the charity.
Currently, about 3.7 million people in England and Wales receive PIP — around 6% of the population. New claims have risen by nearly two-thirds in recent years, prompting the government to act.
Officials say the reform will encourage more people to enter or return to work. But critics argue that it could do the opposite for people whose conditions make working difficult without extra help.
The UK’s independent budget watchdog has estimated that about a third of current claimants could be affected. Around half of those may lose the benefit completely following reassessment.
The proposed changes are still under public consultation, which runs until the end of the month. Finance Minister Rachel Reeves is facing growing pressure from campaigners to reconsider. This follows a recent government reversal on another controversial policy — ending heating subsidies for most pensioners.
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