Skip to content

OBR Says PIP And ESA Cuts Are A Massive Failure

October 12, 2016

With many thanks to Benefits And Work.

The government’s attempts to cut disability benefits spending by 20% with the introduction of personal independence payment (PIP) have been a dramatic failure, the Office for Budget responsibility’s Welfare trends report released today has found. Employment and support allowance cuts have also fallen far short of their targets.

The OBR estimates that the introduction of PIP reduced spending by just £0.1 billion in 2015-16 rather than the £1.4 billion that the planned 20% cut in spending would have achieved.

In part this is because the forced transfer of claimants from DLA to PIP is so far behind schedule. But the OBR estimates that even when completed, the change from DLA to PIP will result in only a 5% reduction in spending, rather than 20%.

The time limiting of contributory ESA for the work-related activity group was expected by the coalition to save £2.0 billion in 2015-16. In fact, it saved just £0.2 billion as the affected group was much smaller than anticipated.

The full OBR report can be downloaded from this link.

2 Comments leave one →
  1. jeffrey davies permalink
    October 12, 2016 5:31 pm

    The government’s attempts to cut disability benefits spending by 20% with the introduction of personal independence payment (PIP) have been a dramatic failure, it was to rid themselves of that dla were one had to jump through hoops to get it but pip is a bridge to far for many

Trackbacks

  1. Newshound’s Newsround 13/10/16 | newshoundsnewsround

What are you thinking?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: