But the proposed freeze — which would likely require primary legislation — prompted a backlash among MPs when it was leaked to ITV News a week ago. Some spoke out publicly and many more expressed concerns privately.
The two people, who requested anonymity to discuss evolving policy, said Friday evening that they believed a PIP freeze would not be part of a green paper on welfare reform to be announced next week. They caveated their comments by saying the plans, which are not yet signed off by Prime Minister Keir Starmer’s Cabinet, had been fluid in recent days.
However, the green paper is still likely to make sweeping changes that will leave campaigners and some Labour MPs unhappy. The two people added that it is still likely to suggest changes to the eligibility criteria for PIP, making it harder to qualify. ITV had reported that this could save billions of pounds a year.
Officials are also still looking at real-terms cuts to the rate for those who are judged as having limited capability for work-related activity under Universal Credit, a separate benefit, the two people said.
Backlash
Many Labour MPs accept the principle of welfare reform. The green paper is widely expected to include reforms to employment support, and to the work capability assessment for sickness and disability payments under Universal Credit.
Prime Minister Keir Starmer told MPs Monday that the system was in a “worst of all worlds situation,” while Chancellor Rachel Reeves told broadcasters Friday: “The current system is not working for anyone … It is not working for people who need support, it’s not working to get people into work so that more people can fulfil their potential, and it’s not working for the taxpayer when the bill for welfare is going up by billions of pounds in the next few years.”
