Freeze on PIP Disability Benefit Expected to Be Scrapped Following Labour Opposition

The proposed freeze on Personal Independence Payment (PIP) benefits, which would likely require primary legislation, has sparked strong opposition from Members of Parliament (MPs) after it was leaked to ITV News a week ago. While some MPs have publicly criticized the idea, many others have voiced their concerns privately.

According to two individuals familiar with the policy discussions, the government is no longer expected to include a freeze on PIP payments in its upcoming green paper on welfare reform, set to be unveiled next week. However, they cautioned that the plans remain fluid and have not yet been finalized by Prime Minister Keir Starmer’s Cabinet.

Planned Reforms and Controversy

Despite the apparent removal of the PIP freeze from the proposal, the green paper is still expected to introduce significant changes that could prove controversial. The two individuals indicated that the government is still considering stricter eligibility criteria for PIP, making it harder for people to qualify—something ITV previously reported could save billions of pounds annually.

Officials are also evaluating potential cuts to Universal Credit benefits for those deemed to have a limited capability for work-related activity, another move that may trigger political and public backlash.

Labour's Justification and Internal Debate

Many Labour MPs acknowledge the need for welfare reform and anticipate that the green paper will include proposals to overhaul employment support and revise the work capability assessment for sickness and disability benefits under Universal Credit.

Speaking to MPs on Monday, Prime Minister Keir Starmer described the current welfare system as being in a “worst of all worlds situation.” Meanwhile, Chancellor Rachel Reeves told broadcasters on Friday that the system “is not working for anyone”—stating that it fails both those who need support as well as taxpayers, as welfare costs are projected to rise by billions of pounds in the coming years.

While Labour’s leadership is pushing for changes, the proposed reforms are likely to face resistance from disability rights groups, campaigners, and some within the party itself.