Leading disability charity Scope believes Rachel Reeves’ Spring Statement could have a ‘catastrophic’ impact on people living with disabilities.
Since the Chancellor of the Exchequer’s mini-budget on Wednesday many have raised major concerns over the announcement in which she said public spending and investment would be the focus of this government.
But after the Department for Work and Pensions announcement that there will be welfare cuts and stricter restrictions on personal independence payments (Pips) many are not satisfied with Reeves’ promise to invest £1bn into employment support services.
Director of Strategy at disability equality charity Scope James Taylor said: “The government needs to listen to disabled people and understand the catastrophic impact these decisions will have on their lives.
“The plan to massively cut disability benefits will as a result lower the living standards of disabled people pushing more into poverty.
“It is obvious these cuts are simply about saving money and not by the “moral” desire to get more people into work.”
And it’s not just charities who are concerned about the impact of the cuts.
Local government political pundits are also apprehensive about the impact Manchester residents might feel.
Manchester chief executive of The Centre for Local Economic Strategies (CLES) Sarah Longland said: “There’s going to be an immediate impact on at least 100,000 people in Greater Manchester that receive personal independence payments.
“Manchester city has some of the highest levels of claimants here. Nearly 60,000 people in Manchester city council claim Pips.
“Other places in Greater Manchester like Wigan and Bolton also have high numbers of claimants.”
Longland said those impacted by the benefit cuts will have to turn to councils who are suffering a lack of funding.
According to their analysis, local government spending across England’s local authorities has significantly reduced with spending falling by 21%, from £3,628 per resident spend in 2009-10 to £2,857 per resident spend in 2023-24.
She said: “In many of these cuts to local services because of previous austerity mean the opportunities to compensate for the loss of Pips payments through for example local services or health services is also rigid so it’s a double whammy.
“We can’t underestimate the impact this will have on people’s lives and the demoralisation that comes on the back of this for people.”
She also raised concerns over labours plan to increase defence spending as this could mean cuts to other departments.
She said: “It’s those local services in their backyard and in their neighbourhood that are really important to those people and particularly those who are living in some of the most disadvantaged communities.
“I would be realty worried about that as it feels fairly uncertain at the minute.”
“For me the big message is if you’re going to undermine investment in benefits and undermine investment in local services then you’re going to undermine your ability to grow your economy.
“We have to stop looking benefits and local service investment as a drain on growth – it’s actually the backbone and the foundation.”
Deputy Director at Greater Manchester Chamber of Commerce Subrahmaniam Krishnan-Harihara had similar thoughts on the benefit and public spending cuts announced by the Reeves.
He said: “It’s going to be a problem in two ways. One, the individuals are being let down and two – they are not going to be helped into the labour market because businesses can’t afford to employ them because of the National Insurance and minimum wage increase.”
He added that the increase in minimum wage in April might not be as good as it seems.
While those on low income are seeing an increase to the National Living Wage and National Minimum wage, the tax threshold is not being adjusted for inflation.
This means people may find they’re getting higher pay, but they may have to also pay more in tax meaning their disposable income remains the same.
Krishnan-Harihara believes cuts being made to public spending aren’t going to help the economy either.
He said: “We can’t continue this thinking of cutting public services and spending – that is not going to work in the long term, it has not worked in the last 14 years.
“Austerity didn’t bring benefits. It will have a real impact on people’s lives. We can’t have a mini austerity again.”
Krishnan-Harihara was also concerned by the Reeves’ lack of mention towards investment into the north.
He said: “Greater Manchester is the power of the northern power.
“If greater Manchester grows, then the rest of the north grows and the rest of the country then.
“We need the investment here. Heathrow expansion is good for southeastern economy but why should Greater Manchester suffer the axing of HS2 – a low carbon way for transport -while in the south and the southeast there’s much more investment.
“The government needs to invest across the UK- in the northwest and the northeast.”
Feature Image: House of Commons via Flickr
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