# 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.
- Title: Means-testing disability benefits could save £8billion and…
- Summary: Labour's PIP reform could save £8billion by targeting disability claims. Means-testing disability benefits could save £8billion annually by cutting handouts…
- Keywords: means-testing, disability benefits, pip, labour, unemployment benefit, universal credit, mental health, anxiety, benefits bill, means test, re:state, working-age population
- Source: Dailymail — https://dailymail.com/news/article-16136993/Means-test-disability-benefits-8billion-middle-class-anxiety-Labour.html?ito=1490&ns_campaign=1490&ns_mchannel=rss
- Published: 2026-09-16T23:01:59+00:00
- Read time: 1 min
- Topics: means-testing, disability benefits, pip, labour, unemployment benefit, universal credit, mental health, anxiety, benefits bill, means test, re:state, working-age population
## 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.
## Key takeaway

Means-testing disability benefits could save £8billion annually by cutting handouts to middle-class youth with anxiety.