Martin Lewis’s charity warns Starmer’s PIP disability cuts will be ‘catastrophic’

Martin Lewis’ charity has warned that Labour’s changes to the Personal Independence Payment (PIP), a key benefit for individuals with long-term health conditions or disabilities, will have a “catastrophic impact”.

Under reforms to the country’s welfare system, Sir Keir Starmer’s government plans to update the eligibility criteria for PIP and universal credit to save around £5bn a year by 2030, and get more people into work.

But critics say the changes will have a devastating impact on some of those who will lose the benefits.

Currently, approximately 3.7 million people across England, Wales, and Northern Ireland receive PIP, a benefit designed to assist those facing challenges due to long-term physical or mental health issues.

It is estimated that 800,000 will lose their allowance under changes to the assessments.

Martin Lewis, founder of MoneySavingExpert.com, has previously raised concerns over the impact of the changes on people who have no other income.

On Thursday, Money and Mental Health Policy Institute, a charity founded and chaired by Mr Lewis, warned the reform to PIP would have a “catastrophic impact” on people’s finances and mental health, and will drive people out of the workplace

Research by the body showed a quarter of 227 people with a mental health condition who receive PIP expected to lose the allowance. The loss of the money would impact their ability to pay for counselling and therapy, the study found.

More than eight in 10 of those interviewed also said losing PIP would mean they would have to significantly cut back on grocery spending, while three-quarters said they used the money to pay for essential household bills.

Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: “The message to the government from this research is clear – its proposed changes to PIP will have a catastrophic impact on people with mental health problems’ wellbeing, finances, and working lives.

“Getting PIP can be the difference between being able to afford the treatment, support and everyday essentials you need, or facing worsening mental health and financial hardship. Some of the people we’ve spoken to say they will struggle to survive day-to-day if they lose this payment and that even the prospect of it has contributed to them having suicidal thoughts.

“The government says its welfare reforms will help more people move into work. But you don’t do that by depriving people of a critical financial lifeline that helps them stay well. Our analysis shows that these changes would actually result in many people with mental health problems who have a job cutting their hours or leaving the workplace altogether.

“We urge the government to ditch these plans. Balancing the books should not come at the price of causing misery and hardship for some of the most vulnerable people in society.”