Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

UK considers tightening its disability benefits system

Published 29/04/2024, 08:30
© Reuters. FILE PHOTO: British Secretary of State for Work and Pensions Mel Stride walks outside Number 10 Downing Street, in London, Britain November 1, 2022. REUTERS/Hannah McKay/File Photo

LONDON (Reuters) - Britain is considering making changes to disability and mental health benefit payments as Prime Minister Rishi Sunak aims to slow the rise in the government's welfare bill and get more people into work.

Ahead of a national election expected later this year that opinion polls show he is likely to lose, Sunak wants to appeal to core Conservative voters by warning that future rises in welfare spending are fiscally unsustainable.

Work and pensions minister Mel Stride said on Monday that the government was starting a 12-week consultation on personal independence payments (PIP), a cash benefit paid to 3.3 million people with health problems and disabilities in Britain.

Projections from official budget forecasters show that PIP payments are set to rise by 63% over the next five years, or 13 billion pounds ($16.3 billion) a year, Stride said.

"There is a sustainability issue here that we need to have a grown-up conversation about," he told Times Radio.

"We should be thinking about and examining the possibility that we take a different approach than straightforward cash benefits paid."

Sunak, who faces the prospect of heavy losses in local elections on Thursday, has said that, if re-elected in the next national election, he wants to do more on welfare reform.

He said earlier in April that the government would consider tightening rules for long-term sick leave to reverse a rise in the number of Britons who have permanently dropped out of the workforce.

($1 = 0.7991 pounds)

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.