A rise in disability benefit claims has been linked to austerity measures affecting non-health related benefits, according to experts. The Institute for Fiscal Studies (IFS) highlighted various cuts such as housing support reductions in 2011, leading to decreased family incomes and an increase in disability benefit recipients.
The IFS report identified multiple changes, including cuts to housing benefits, the state pension age increase for women, and adjustments to benefit caps. These alterations inadvertently pushed more individuals towards seeking health-related benefits like the personal independence payment (Pip).
Analyzing the impact of non-disability benefit cuts and tax changes from 2010 to 2019, the IFS revealed an unexpected £900 million rise in disability benefit spending. Eduin Latimer, a senior research economist at the IFS, emphasized the unintended consequence of benefit reductions driving more people to claim disability benefits, potentially creating a long-term reliance on such support.
The IFS report’s findings may pose challenges for the Government as it revisits reforms on health-related benefits following a recent policy reversal. The report suggested that the surge in disability benefit claims post-pandemic could be attributed to individuals coping with the increased cost of living since 2022, with no significant net benefit cuts reported since 2019.
Iain Porter from the Joseph Rowntree Foundation, a contributor to the IFS report, urged policymakers to consider the research conclusions. He emphasized that if individuals experience declining health due to financial constraints, abrupt benefit cuts could prove counterproductive in the long run.