Government fails to deliver £4bn savings in disability benefits cuts

THE GOVERNMENT has failed to deliver more than £4bn in planned cuts to disability benefits, new analysis has found.

Labour MPs accused the Tories of “creating further waste and expense” with their reforms to the system, forcing further cuts elsewhere in the welfare budget.

Office for Budget Responsibility (OBR) documents say the Government wanted the transition from disability living allowance (DLA) to personal independence payments (PIP) to cut spending by 20 per cent.

Analysis of welfare spending forecasts shows more than £4bn of anticipated savings on PIP and DLA next year will not have been delivered. Forecasts from March 2014 anticipated £13.6bn being spent on disability benefits in 2018/19. But the same figures published alongside this year’s Budget forecast £18bn being spent on DLA and PIP next year.

Shadow Work and Pensions Secretary Debbie Abrahams said: “It is becoming increasingly clearer that these flawed Tory assessments only create further waste and expense.”

The rise in spending has been attributed to an ageing population and more payouts to those with mental health and behavioural conditions.

But it also comes as growing numbers of people fight decisions to reject them for PIP, with 161,000 people having decisions overturned since the benefit launched in 2013.

A Department for Work and Pensions spokeswoman said: “PIP is still a new benefit and we are determined to ensure that it is rolled out effectively to get it right for claimants. We expect the number of claimants to grow over time, and it’s important that all claimants get the best possible support.”