MINISTERS are considering dropping plans to freeze Personal Independence Payments (PIP) for a year, according to a report.
Initial proposals suggested PIP would not rise in line with inflation, but strong opposition from Labour MPs has prompted a review.
The government is still expected to tighten eligibility criteria as part of a broader effort to cut welfare spending, reported the BBC.
Work and pensions secretary Liz Kendall will outline welfare reforms in a green paper next week, followed by chancellor Rachel Reeves’ Spring Statement on 26 March, where she will detail reductions of £5 billion to £6bn in welfare spending.
As part of the reform, a "right to try" guarantee will allow people with disabilities to seek employment without risking their benefits if it does not work out, according to the BBC.
Spending on health and disability benefits is projected to rise from £64.7bn in 2023-24 to £100.7bn by 2029-30, with PIP increasing from £18 billion to £34bn over the same period, the Office for Budget Responsibility states.
The number of PIP claimants is expected to grow from 2.7 million to 4.2m.
A Department for Work and Pensions spokesperson told the BBC that the welfare system needs reform to help those who can work find employment while ensuring adequate support for those who cannot.
Meanwhile, health secretary Wes Streeting has indicated further cuts to NHS England, aiming to improve efficiency and reduce bureaucracy.
