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Guardian: Councils and NHS could face millions in extra costs due to disability benefit cuts

Government plans for Pip cuts will drive up costs for local authority social care services and NHS, campaigners warn

by Chaminda Jayanetti, The Guardian

Summary

  • Government plans to cut at least £5bn from disability benefits could shift financial burden onto already cash-strapped councils, say campaigners and local officials.
  • A green paper published last week by Work and Pensions Secretary Liz Kendall outlines cuts to disability benefits, potentially leaving 1.2 million fewer people eligible for Personal Independence Payments (PIP) by 2029/30, with existing claimants losing benefits during reassessments.
  • Critics warn that without financial support from PIP, some individuals' conditions could worsen, leading to increased reliance on council-funded care services, and unpaid carers could lose eligibility for carer’s allowance, further burdening local authorities.
  • Analysis from the Disability Policy Centre forecasts that cuts will result in an additional £1.2bn in costs for NHS and social care services.
  • Arun Veerappan of the Disability Policy Centre states that for every pound lost in benefits, councils will experience a £1.50 additional impact, particularly in providing social care support and finding appropriate community therapists.

Extracts

The government’s plans to cut at least £5bn from disability benefits could end up driving more costs on to cash-strapped councils, according to campaigners and local government officials.

Last week, work and pensions secretary Liz Kendall published a green paper including a package of cuts to disability benefits. Up to 1.2 million fewer people could be eligible for Pip by 2029/30 as a result of the changes, according to the Resolution Foundation thinktank, including existing claimants losing their benefits when their needs are reassessed.

Critics warn that, without the financial support of Pip, some people’s physical condition or mental health could worsen to the point that they require council-funded care services, while their unpaid carers could become ineligible for the carer’s allowance benefit, meaning they may have to pass their care responsibilities to the local authority.

About Disability Policy Centre Analysis

Last week, the Disability Policy Centre thinktank published analysis forecasting that the government’s cuts would lead to £1.2bn of extra costs for the NHS and social care services.

For every pound that someone loses in benefits, you know that – if a council has to step in to cover the shortfall – it’s about £1.50 additional impact,

Let’s say you need social care support at home. In order for the council to find that funding and administrative support, that will cost more – especially when it comes to finding the right community therapist and care. There’s not the resources for that … there’s not enough resources in the system to deal with that extra demand.

If you lose carer’s allowance, you’re going to just push more people into the formal [council-funded] care system.

Arun Veerappan, the Disability Policy Centre’s interim director of research.

He warned that forcing more people to rely on council care provision would lead to increased strain and delays in services such as community care and the Disabled Facilities Grant.

Disability Policy Centre: Summary of Analysis

  • New analysis following ‘Pathways to Work’ green paper projects reforms will likely only deliver savings of £100M by 2030 – 2% of the £5bn claimed by the government.
  • The additional costs will come from increased NHS demand, reduced spending from disabled households and costs from appeals against the cuts. 
  • The analysis also shows previous cuts to PIP have failed to produce material savings for the Treasury, according to the UK’s only disability think tank The Disability Policy Centre.

Further media coverage

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