From Dailymail · · 1m 30s
Means-testing disability benefits could save £8billion and cut handouts to middle-class youngsters with anxiety
Labour's PIP reform could save £8billion by targeting disability claims.
In brief
Labour's PIP reform could save £8billion by targeting disability claims. Means-testing disability benefits could save £8billion annually by cutting handouts to middle-class youth with anxiety. Originally reported by Dailymail.
What's at stake
Labour could save £8billion yearly by means-testing disability benefits.
The report
Institute for Fiscal Studies found means-testing could cut spending by a third.
Current claims
Over four million people now claim disability benefits.
Mental health claims
Disability claims rose 50 per cent since 2:00.
PIP spending
Spending on PIP grew from £14billion to £25billion in five years.
The proposal
Limit PIP to under-30s with severe disabilities.
Potential savings
Could save £2.2billion yearly by targeting claims.
International comparison
Britain has higher disability claim rates than Denmark, France, Norway.
Re:State report
Re:State think tank says Britain is an outlier in disability benefits.
The problem
PIP claimants get unconditional cash with no spending requirements.
The solution
Integrate PIP into Universal Credit to target need more precisely.
The cost
Savings could diminish due to behavioural responses.
The debate
Some claimants have severe disabilities that need support.
The alternative
Stop all under-30s from claiming PIP.
The risk
Could save £5.5billion yearly but many have severe disabilities.
The next step
Labour's review due to report back this autumn.
What it means
Means-testing disability benefits could save £8billion annually by cutting handouts to middle-class youth with anxiety.
