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Benefit cuts will cost the economy.

614 replies

MistressoftheDarkSide · 29/04/2025 08:33

https://www.theguardian.com/society/2025/apr/29/labours-benefit-cuts-will-cost-uk-economy-billions-charity-says

Interesting article which repeats what some of us have been saying about the likely consequences of the proposed measures, including increased pressure on services.

Labour’s benefit cuts will cost UK economy billions, charity says

Trussell report finds that higher levels of poverty mean Britain is losing out on £38bn a year of potential output

https://www.theguardian.com/society/2025/apr/29/labours-benefit-cuts-will-cost-uk-economy-billions-charity-says

OP posts:
Thread gallery
15
Kindersurprising · 29/04/2025 13:18

malificent7 · 29/04/2025 13:16

Lol at benefit claimants "raking it in! "

Many do, I can even provide links from this website proving it.

PlutoCat · 29/04/2025 13:18

User46576 · 29/04/2025 13:03

Most people claiming disability benefits (or having it claimed on their behalf) do not need specialist equipment. Many don’t require carers either

I suggest you look at some stats about the numbers employed in the caring sector, about the shortages of staff and about unpaid carers. Also have a look at the uptake and waiting times for disabled facilities grants.

PhilippaGeorgiou · 29/04/2025 13:17

Kindersurprising · 29/04/2025 13:09

This. The time when disability meant hauling equipment, a wheelchair and grommets is long gone (apart from for a small minority). It means something quite different now, on the whole. Yet the money remains.

I must mention that to my mobility scooter, my service dog, my rollator, my electric bed (so I can get out of it in a morning, amongst other things) etc., etc. Those things are all paid for by me, and in total cost far more than the PIP I get. And that's before the fact that if I don't keep the heating on in winter more than I did previously, I freeze and put my life at risk. Would you please point me to the research supporting your view that disdability does not mean extra costs for the majority of us. Because every single piece of research I have seen says that the additional income some of us get (and I'm "deserving" - worked all my life, still paying income tax) nowhere near covers the addiitonal costs of disability. As someone who could work (and whose work was responsible for my disability in the first instance) I am lucky because I have a small pension in addition to state pension and PIP. And I struggle at times. Take away my PIP and I won't manage - just too much income to get no benefits, not enough to live on with a disability.

Kindersurprising · 29/04/2025 13:17

BottleBlondeMachiavelli · 29/04/2025 13:11

Why are disabled people in the firing line, though?

Do you think there’s a belief that most PIP claimants are malingering NEETs? I know there is a concern that some claimants meet that description (which makes me wonder, if true, why and how those awards are being made), but what did you think the belief is about the rest of disabled people?

Im finding this really hard to understand.

Im wondering, too, if weekday, daytime MN is more right wing than evening and weekend MN. I don’t usually come on here at this kind of time.

Because disabled people are the biggest takers, if you want to phrase it like that. And the profile of disability is very different now and seems to be overwhelmingly self reported and MH conditions.

I know numerous families (5 or 6) who claim over £50,000 per year in benefits, and that doesn’t include the costs of special school, therapies, NHS, and transport. Each family is probably costing the taxpayer somewhere in the region of £150,000 per year, so all together that’s probably just less than £1 million a year. And that’s just on people I know, I don’t even know that many people (have a small friendship circle, wfh, not well known in the local community).

Replicate that across the country and you can see the scale of the issue. Taxpayers aren’t solely there to prop up the disabled and needy, they also want a quality of lives for themselves and that is not selfish.

When councils are leaving rubbish to rot in the street, and public libraries and swimming pools are being closed on a weekly basis, and the roads ruin the suspension in your car because they’re full of unfixed potholes (this happened to my neighbour last week who was left with the bill), yes you’re going to be quietly fuming that 60% of your council tax goes on social care and the benefits bill is increasing by £10 billion per year - where would you suggest we get this money?

MapCollector · 29/04/2025 13:17

Mrsttcno1 · 29/04/2025 11:17

Benefits are not always significantly less than wages.

If you work full time on NMW then your take home pay each month would be around £1500.

If claiming then potentially you have

  • £400 for single person over 25
  • If assess as LCWRA then an extra £423
  • If renting you can claim housing element of UC, amount depending on your area, but in my area for a 1 bedroom that is another £448
  • If entitled to PIP then roughly £295 for lower rate

That’s £1566, so actually not vastly differently.

If you can claim enhanced rate PIP then £1711

If you have a child then another £292 per child for the first 2.

Who do you think is getting free utilities? Subsidy at supermarkets? Everything costs exactly the same for everybody?

You're conveniently forgetting that a person on nmw is entitled to housing benefit, so are people on state pension, I know, I have had my rent paid while working. So that can be added to their income.

malificent7 · 29/04/2025 13:16

Lol at benefit claimants "raking it in! "

MistressoftheDarkSide · 29/04/2025 13:14

User46576 · 29/04/2025 12:59

If you read the article the actual alleged loss to the economy according to the study (headline is misleading) is that millions are not contributing what they could to society because they are not working. So it’s not actually benefit cuts that are causing this (and indeed they may help)

Well we live in an economy where benefits are essential to maintain a standard of living, including for working people, so it's all part and parcel of the same problem. NMW employers are hardly likely to pay a living wage just because their employees have government assistance taken away. The knock on effects will reduce productivity, not increase it. Coupled with disproportionate rises in business rates and rents, and increases in NI, how do you propose we disentangle this?

OP posts:
iwentjasonwaterfalls · 29/04/2025 13:13

Kindersurprising · 29/04/2025 13:11

People have a perfect right to scrutinise benefits without this being some kind of indication they would be happy to be disabled themselves. We can also criticise military spending without wanting to become soldiers. It’s emotional blackmail and it won’t work. I am disabled btw, and horrified by the spending. I could claim but choose not to (yes- really)

How do you cope with living costs if you're disabled but choosing not to claim?

BottleBlondeMachiavelli · 29/04/2025 13:12

Kindersurprising · 29/04/2025 13:09

This. The time when disability meant hauling equipment, a wheelchair and grommets is long gone (apart from for a small minority). It means something quite different now, on the whole. Yet the money remains.

Do you have figures for that, please? I haven’t heard that angle before.

Kindersurprising · 29/04/2025 13:11

Thronglet · 29/04/2025 11:36

I don't care - if you can't come to a compassionate response on your own, why should I waste my time trying to turn you into a decent human being?

People have a perfect right to scrutinise benefits without this being some kind of indication they would be happy to be disabled themselves. We can also criticise military spending without wanting to become soldiers. It’s emotional blackmail and it won’t work. I am disabled btw, and horrified by the spending. I could claim but choose not to (yes- really)

BottleBlondeMachiavelli · 29/04/2025 13:11

User46576 · 29/04/2025 13:07

I’m a lefty but I wouldn’t put it like that. I think we are getting increasingly fed up as a society of people taking out and not contributing. That has impacted our attitudes to people on benefits and asylum seekers

Why are disabled people in the firing line, though?

Do you think there’s a belief that most PIP claimants are malingering NEETs? I know there is a concern that some claimants meet that description (which makes me wonder, if true, why and how those awards are being made), but what did you think the belief is about the rest of disabled people?

Im finding this really hard to understand.

Im wondering, too, if weekday, daytime MN is more right wing than evening and weekend MN. I don’t usually come on here at this kind of time.

Kindersurprising · 29/04/2025 13:09

User46576 · 29/04/2025 13:03

Most people claiming disability benefits (or having it claimed on their behalf) do not need specialist equipment. Many don’t require carers either

This. The time when disability meant hauling equipment, a wheelchair and grommets is long gone (apart from for a small minority). It means something quite different now, on the whole. Yet the money remains.

LadyKenya · 29/04/2025 13:09

User46576 · 29/04/2025 13:03

Most people claiming disability benefits (or having it claimed on their behalf) do not need specialist equipment. Many don’t require carers either

Most? How would you know this? There may very well be the hidden cost of disability, that you would know absolutely nothing about.

MapCollector · 29/04/2025 13:08

outlanderish · 29/04/2025 11:10

There are so many jobs out there - I struggle to believe people cannot find jobs.

My husband who is in work, minimum wage job, is struggling to change his job at the minute, that's with a good CV and work history. My employer gets around 100 applicants for each advertised job, most vacancies go to those who are moving from one job to another, or leaving education.
It's not easy, and unless jobs are ring fenced for the long term disabled they won't stand a chance.
HR filter out those with unexplained gaps on cv's and those without the desired criteria.

User46576 · 29/04/2025 13:08

GrumpyDullard · 29/04/2025 13:03

It’s probably advisable not to comment when you haven’t read the article.
I’d also suggest you avoid using the word “hindsight” if you don’t know what it means.

@outlanderish is right tho. The study referenced in the article is talking about costs of people not working

User46576 · 29/04/2025 13:07

BottleBlondeMachiavelli · 29/04/2025 12:46

I think the country is undergoing a massive lurch to the right, unfortunately.

It seemed to start with concerns around immigration, but we’ve very rapidly reached a point where the Labour Party is onboard and kicking disabled people is fashionable. Depressing times.

I’m a lefty but I wouldn’t put it like that. I think we are getting increasingly fed up as a society of people taking out and not contributing. That has impacted our attitudes to people on benefits and asylum seekers

GrumpyDullard · 29/04/2025 13:03

outlanderish · 29/04/2025 08:35

In hindsight, surely it will do the opposite and encourage the people who do not work but are physically able to work, to work? No?

It’s probably advisable not to comment when you haven’t read the article.
I’d also suggest you avoid using the word “hindsight” if you don’t know what it means.

User46576 · 29/04/2025 13:03

TigerRag · 29/04/2025 12:38

You really think disabled people and their carers are "raking it in"? Have you seen the cost of carers, disability equipment, etc?

Most people claiming disability benefits (or having it claimed on their behalf) do not need specialist equipment. Many don’t require carers either

WhitegreeNcandle · 29/04/2025 13:00

I’m quite interested in this. My heart says disabled people should absolutely be supported financially and in other ways by society.

The reality I see in my business is so many people who don’t want to work. The number of people with anxiety or depression that do a few days and then disappear or don’t turn up for interviews is unreal. I’ve been employing people for 20 years and it’s a problem that’s growing and growing and growing. Far more so amongst the younger generations. I really worry for the future of our society when I see the day to day lack of work in the young.

Before I’m slated for being an awful employer we work closely with the local college so see a lot of students. We employ a small number of people and a couple of those have diagnoses that are covered by the equality act. We have school hour shifts, weekend shifts, term time shifts. If you want to work and can smile we will try very hard to fit you in. It’s an unskilled job so can be taught to pretty much anyone.

BottleBlondeMachiavelli · 29/04/2025 12:59

iwentjasonwaterfalls · 29/04/2025 12:51

Where are the jobs? People are so quick to suggest shelf stacking and cleaning etc but don't seem to realise that being able to work isn't the same as being able to do any job. I worked in a supermarket one Christmas as a student; it was an incredibly physically demanding job. Ditto cleaning.

I'm on LCWRA, I desperately want to work but could only work from home, but those jobs are like hens teeth. I just had feedback from a recruitment second stage that I couldn't have done anything different; they just had a very limited number they could take through to interview.

The government needs to accompany their benefit cuts with requirements for employers to allow wfh unless there's a very good reason not to, and incentives for taking on disabled workers. Trying to find a job as a disabled person is hell.

Yes! WFH should be a major factor in allowing more disabled people to work. Unfortunately WFH is something else the right are inexplicably opposed to.

User46576 · 29/04/2025 12:59

MistressoftheDarkSide · 29/04/2025 08:36

Did you read the article? Because apparently not.

If you read the article the actual alleged loss to the economy according to the study (headline is misleading) is that millions are not contributing what they could to society because they are not working. So it’s not actually benefit cuts that are causing this (and indeed they may help)

Viviennemary · 29/04/2025 12:57

Emanresuunknown · 29/04/2025 12:46

Sorry but too many people are not working. As a society we cannot cope with so many people not working, the burden on those left to carry it is too great.

There comes a point where if you keep trying to pile more and more and more on an ever smaller group of people, they'll collapse under the weight.

They already have. Why is Reform on the rise.

Emanresuunknown · 29/04/2025 12:56

Octavia64 · 29/04/2025 12:53

Ok, so taking this at face (ish) value:

how do we get people who can work to work?

first, let’s think about what we mean by people who can work.

university students can work. We don’t make them stop studying and get full time jobs because as a whole for the economy we want people with high skill levels and so as a country we’ve made the decision they don’t have to work and the government will at least partially fund their studies.

back in the 60s and 70s it was generally accepted that women with small children didn’t need to be made to work. Since then many more women work and fewer men work.

see https://commonslibrary.parliament.uk/research-briefings/sn06838/#:~:text=The%20female%20employment%20rate%20was,compared%20with%2014%25%20of%20men.

lots of people who are retired can work. Most of them don’t want to and either have enough money coming in from private pensions and investments or state pensions etc that they don’t have to. Strictly speaking if you consider the state pension a benefit (which strictly speaking it is) this is by far the largest group of people on benefits who could be working but aren’t.

most of them don’t want to, and you’d have to really cut the state pension brutally to force some to go back because they need the money which would lose whichever government did it the next election.

then you are left with people of working age (18-67) who have not retired already and aren’t studying.

most of them have a job. The UK has a higher percentage of it’s population in work than any of the other European countries.
latest is 75.1%
https://researchbriefings.files.parliament.uk/documents/CBP-9366/CBP-9366.pdf

(remember most of that other 25% is students and early retired people).

the current focus on cutting benefits is not about getting people into work. The government have a financial problem in that benefits spending (which is about half state pension and a lot of the rest is benefits for people in work) is going up and tax take is going down because we are on the edge of a recession (Covid, Ukraine, etc).

pip is an in work benefit. People get it who work full time. UC is an in work benefit. People get it who work full time.

none of this has got anything to do with getting people into work, it’s just about cutting benefits. Cutting pip actually makes people less likely to work because it’ll pay for wheelchair adapted cars, taxis to work, etc.

Yes but the evidence suggests most recipients aren't using it to facilitate work given that 80+% of PIP recipients are not in work.
So most are not using it to facilitate work.

LadyKenya · 29/04/2025 12:54

Kindersurprising · 29/04/2025 11:32

And no, no single adult is going to get rich on benefits.

But if you are claiming UC, DLA for a couple of kids (as seems to be quite normal round here), carers, and PIP for one of the parents, yep that’s a very comfortable life indeed - around £50k, if not more.

Well I don't know where you live, but it is not normal, where I reside.

MyNameIsX · 29/04/2025 12:54

MistressoftheDarkSide · 29/04/2025 08:33

https://www.theguardian.com/society/2025/apr/29/labours-benefit-cuts-will-cost-uk-economy-billions-charity-says

Interesting article which repeats what some of us have been saying about the likely consequences of the proposed measures, including increased pressure on services.

I could not disagree more.