Housing associations and charities concerned over cuts to disability benefits
Housing associations and charities have voiced concern over the government’s plans to cut spending on disability benefits.
A leading accessible housing provider told Inside Housing that cuts to incapacity benefits and tightened eligibility for Personal Independence Payment (PIP) could “disproportionately affect those on already squeezed budgets”.
The intervention came after work and pensions secretary Liz Kendall outlined plans to cut £5bn of government spending on welfare by the end of the decade.
Nic Bungay, director of housing, strategy and innovation at Habinteg Housing Association, said: “The government’s plan to cut disability benefits could disproportionately affect those on already squeezed budgets, as many disabled people live in social housing and are more likely to be on a lower income than the rest of the population.
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“With the ongoing cost of living crisis, any further threat to the income of disabled tenants is a cause for concern. A reduction in income due to reduced benefits may result in households with disabled family members living on limited means to cover essential costs, such as food, fuel bills and rent.”
The toughening of rules around PIP could impact some disabled people who need to have paid assistants or live-in carers to help them with everyday tasks such as preparing food and washing or getting around their home, even in an accessible and adaptable home, he added.
Habinteg, which provides accessible homes for disabled people, said it gives financial help to tenants experiencing extreme hardship and provides access to a free benefits assessment through charity Disability Rights UK.
Alongside tightening eligibility for PIP, the government will consult on how frequently to conduct PIP reassessments and scrap work capability assessments by 2028.
It also plans to increase the basic rate of Universal Credit from April 2026, but cut the incapacity benefit for new claimants judged as unfit for work. Meanwhile, people under the age of 22 will no longer qualify for the health top-up of Universal Credit.
As part of the package, Ms Kendall told MPs on Tuesday that her department would spend up to £1bn more a year on helping people back into work through supportive calls and training programmes.
The End Child Poverty Coalition, made up of 130 organisations including children’s charities, welfare organisations and trade unions, warned that the government’s proposed cuts would deepen child poverty.
Anela Anwar, chief executive of charity Z2K and member of the End Child Poverty Coalition, said: “One in four people in receipt of incapacity benefits has dependent children and many of these families are already struggling to afford the essentials.
“So at a time when the government is developing a strategy to reduce child poverty, it is shocking that it is also proposing to make significant cuts to family incomes.”
Dan Wilson Craw, deputy chief executive of Generation Rent, a private renters campaign group, warned that the proposed change could lead to some private renters no longer being able to afford their rent.
He said: “It is deeply concerning that the government is planning to reduce the number of people who can claim PIP and limit Universal Credit for those under 22.
“Research shows just 9% of private rented homes are accessible, meaning many renters living with a disability are forced to pay inflated rents due to a lack of choice, or live in homes that aren’t suitable for their needs.
“Many renters use their PIP to supplement their rent, meaning these changes could lead to them being forced out of their homes. If disabled renters are forced out because of unaffordable rents, they are unlikely to find suitable housing that meets their specific needs.
“For renters under 22, the housing element of their Universal Credit often doesn’t cover their rent, meaning top-ups can be a lifeline that keeps a roof over their head.
“We urge the government to listen to anti-poverty organisations and back track on the proposals to cut welfare spending.”
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