The government estimates that about 800,000 people will lose out on disability benefits, also known as personal independence payments (Pips), with individuals set to lose an average of £4,500 a year by 2029-30.
Figures, published on Wednesday alongside Rachel Reeves’ Spring Statement, show about 370,000 people who are currently in receipt of disability benefits will no longer get them when they are reassessed. Close to half a million future claimants will no longer be entitled to them as well, it added.
Meanwhile, around 2.25mn people currently in receipt of incapacity benefits, known as universal credit health, will be impacted by the freeze on rates, losing on average £500 a year.
Additionally, three quarters of a million future recipients of the benefit will lose out on about £3,000 a year because of the government’s decision to slash the benefit entitlement in half for new claimants, it added.
Around a fifth of families with a disability in the household will lose out on benefits as a result of the reforms, averaging a loss of £1,730 per year, according to an analysis published by the government on Wednesday.
The changes will push about 250,000 people into relative poverty, defined as households whose income is below 60 per cent of the median, according to government estimates.
FT.