This afternoon, Rachel Reeves, Chancellor of the Exchequer, delivered her Spring Statement.
Reeves has committed to increase defense spending by 2.5%, reform the welfare state, and invest £13 billion more in capital infrastructure to support growth, and an additional £2 billion in social and affordable housing.
Welfare reforms come amidst reports of the escalating costs of benefits in public spending. The changes, set out in the section “Supporting people into work”, include a fundamental review of the Personal Independence Payment (PIP) assessment. PIP is designed to help those suffering from a long-term physical or mental health condition or disability or difficulties with carrying out everyday tasks with extra living costs.
The government plans to tighten eligibility rules, which will lead thousands to miss out on this welfare payment. Data shows that just over 370k people who currently claim personal independence payments will lose them, alongside another 430k who would have been eligible in the future.
Disabled people are said to be the ones who will suffer the most from the new changes to welfare, and, with over 10m disabled people across England and Wales, this could have a significant impact on wellbeing across the country.
Personal Independence Payment Statistics
The latest Personal Independence Payment statistics revealed that, as of 31 January 2025, 3.7 million people claimed PIP in England and Wales. This is a 2% increase from that registered last October.
The data published by the Department for Work & Pensions last week, adds that 37% of all claimants received the highest level of award under the scheme.
Additionally, between April 2023, when PIP began, and January 2025, 8.5 million claims have been registered, and 8.2m have been cleared. 76% of these were new claims and 24% of these were reassessment claims.
The highest number of PIP initial assessments took place in Birmingham, with over 170k claims made, followed by Liverpool (91.7k). The highest percentage of PIP claims awarded were seen in the Cotswold, High Peak, Broadland and Knowsley, all registering a rate of 66%.
In the map below you can see PIP statistics on a local authority level. To explore statistics in your area double click on the map or click here to launch the full page.
Disability Statistics
An estimated 16.1 million people in the UK had a disability in 2022/23.
Disability prevalence in the UK has risen steadily since 2002/2003, with the proportion of people reporting a disability rising from 18% to 24% over the period. In the last ten years the estimated number of disabled people has increased by 32%. This trend mirrors the increase in welfare spending seen in recent years.
48% of disabled people are reported to have a mobility impairment, whilst 36% struggle with breathing and fatigue and 34% with mental health. Prevalence in social and behavioural impairments was 50% amongst children.
According to Census data, the number of people with recorded disabilities under the Equality Act is highest in Birmingham (198k), Leeds (136k), Cornwall (121k), and County Durham (120k).
To explore Census 2021 disability statistics in your area click here to launch the map.
Commentary
Following the Spring Statement, organisations have criticised the government’s decision to cut welfare spending.
Paul Kissack, chief executive officer of the Joseph Rowntree Foundation: “The Chancellor said today that she would not do anything to put household finances in danger, yet the government’s own assessment shows that their cuts to health related benefits risk pushing 250,000 people into poverty, including 50,000 children.”
“With living standards for the poorest under continuing assault, the government needs to protect people from harm with the same zeal as it attempts to build its reputation for fiscal competence.”
Saffron Cordery, chief executive officer of NHS Providers: “The confirmation of cuts to some benefits is a real concern.”
“There are particular worries over the potential impact on disabled peoples’ health and their ability to support themselves.”
“With poor mental health the leading driver of ill-health related economic inactivity, trust leaders fear these changes could add to pressures on mental and physical health services which are already severely stretched.”
Paul Fleming, general secretary of Equity: “Across the UK, many Equity members will have voted for this Government because of their manifesto promise of ‘Change’.
“Those members will be disappointed by the Government’s continued commitment to austerity through the cuts to support for disabled people, the shrinking of the public sector, and narrowing of commitments for a just and green transition. Despite some welcome investment in social housing, this is not the change they were promised.”
Tom Pollard, head of social policy at New Economics Foundation: “Today’s assessment confirms that ill and disabled people will see cuts to benefits amounting to around £6.5bn a year by 2029-30. Yet the Department for Work and Pensions and the OBR between them have not yet been able to forecast any impact on employment outcomes.”
“The government’s narrative to justify benefit cuts for ill and disabled people has completely fallen apart – it is clearer than ever that the real driver has been pressure to meet an arbitrary savings target.”