'This is not austerity': Scottish Labour's Anas Sarwar defends cutting billions in benefits

UK Work and Pensions Secretary Liz Kendall on Tuesday unveiled a series of drastic cuts to benefits, which will leave many who claim disability payments worse off.

Although her department will now spend up to £1bn a year helping people get back into work, only the most severely disabled will be able to continue claiming disability benefits.

The UK government is tightening the eligibility criteria for personal independence payments (PIP), which is paid to help cover the additional costs associated with living with a disability.

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This payment is devolved to Scotland as the adult disability benefit. The UK government says the changes it is making to eligibility will not necessarily apply north of the Border, as the handling of the payment lies with the SNP Scottish Government.

However, the cuts will likely affect the amount of money coming to Holyrood to cover the cost of this benefit.

Economists at the Fraser of Allander Institute at Strathclyde University estimate that a £1bn cut in PIP spending by the UK government by reducing the eligibility criteria will cost the Scottish budget around £115 million.

This will impact around 125,000 Scots by 2029/30, meaning the Government may need to reduce the number of people claiming this benefit by 2.5 per cent.

Speaking before Ms Kendall’s statement in the House of Commons, Mr Sarwar insisted the Labour government in Westminster had to deal with the “broken” social security system left to them by the previous Conservative government and “put our finances on a sustainable footing”.

Mr Sarwar told The Scotsman: “I have heard shouts of austerity from many an SNP politician - I think actually they need to look in the dictionary. Austerity means when public spending is going down.

“Even with these changes that are being announced, welfare spending is projected to go up across the UK and go up in Scotland. That is not austerity, it is the very opposite of austerity.”

Speaking to journalists in Rosyth on Tuesday, Mr Sarwar said welfare spending across the UK was projected to rise from around £50bn a year to £70bn, adding the government needed to act fast as this would “take money away from other vital public services”.

The Scottish Fiscal Commission has forecast that overall spending on social security in Scotland will rise from £4.2bn in 2022/23 to £8bn in 2028/29.

Elsewhere the UK government says the reforms it is introducing would help get more people back into work, with almost 300,000 Scots out of work because of temporary or long-term sickness. This is higher than the rate in the rest of the UK.

The reforms include ending reassessments for disabled people who will never be able to work, scrapping the work capability assessment, spending £1bn on employment support, and legislating to protect those on health and disability benefits from losing their payments if they try to get back to work.

The Labour government will raise Universal Credit above inflation by 2029/30, adding around £775 a year to the payment, and consult on delaying access to the health element of Universal Credit until someone is 22.

Mr Sarwar said: “Labour is the party of work and there are far too many people, too many young people, not getting the opportunities they need across our country. That is why there are reforms to welfare. There is going to be prioritising work and making sure at the same time that those who need support get support.”

The Citizen’s Advice Bureau said it was “very concerned” about the reforms being put forward, saying it would lead to “unacceptable” reduced incomes for those in the most severe poverty.

Emma Jackson, head of social justice at Citizen’s Advice Scotland, said: “The whole public conversation over the last couple of weeks has been so distressing for sick and disabled people, many of whom are terrified about what these changes could mean for them.

“Evidence from across the Citizen’s Advice network in Scotland clearly shows that disabled people are already finding their income is not enough to live on. We constantly hear of meals being missed, essential medical devices not being charged and people in cold, damp houses, with devastating consequences to their physical and mental wellbeing.

"To cut the income of people still further by changing who is eligible for support, even as the cost-of-living keeps rising, would be cruel and wrong.”

Ms Jackson said the social security system did need reform and stressed Universal Credit (UC) was “broken and causes destitution by design”. But she said UC must remain a safety net for everyone, adding: “The UK government says there are difficult decisions to be made.

“I challenge ministers to talk to our advisers and listen to what decisions people already must make - whether to turn the heating on or charge an electric wheelchair, whether to pay the rent or put food on the table. These are the really hard decisions.

“Disabled people should not pay the price for the wider challenges in our economy.” 

Roz Foyer, general secretary of the Scottish Trades Union Congress (STUC), added: “These are reforms that could well have been delivered with a blue rosette.

“Actively making it harder for people who cannot work and who need support is not the change that was promised during the election. It’s a short-sighted, reactionary decision that will negatively impact on the Scottish Government’s Budget.

“This is the wrong choice at any time, but to do so when food, energy, utilities and housing costs are still eye-wateringly high, the government is risking throwing more people into completely avoidable destitution. You don’t need to cut the support system to those with the least when you can cut the profits of those with the most.”

Ms Foyer added: “The UK government had a choice - they could have targeted those with wealth, assets and property, taxing and then redistributing the revenue. They’ve chosen instead to punch down - something we cannot support.”

However, the Labour government has defended the decision to cut billions from the welfare budget.

Prime Minister Sir Keir Starmer said: “We inherited a fundamentally broken welfare system from the previous government.

“It does not work for the people it is supposed to support, businesses who need workers or taxpayers who foot the bill. This government will always protect the most severely disabled people to live with dignity. But we're not prepared to stand back and do nothing while millions of people - especially young people - who have potential to work and live independent lives, instead become trapped out of work and abandoned by the system.

“It would be morally bankrupt to let their life chances waste away. When I talk about opportunity for all, I mean it.

“That’s why we are bringing forward the biggest changes to the welfare system in a generation and improving support for those who need it. Ensuring those who can work do work is not only right, but it will also improve living standards and drive growth. The number one priority in our plan for change.”